What gets measured, gets improved. Transparency on the material environmental, social, and governance performance results signals that it is monitoring progress toward sustainability goals and increases confidence in the company’s ability to create sustainable value for all its stakeholders. Furthermore, sharing results creates an opportunity for benchmarking for others to follow, thereby increasing the speed of learning.

Transparency creates accountability, not just for the company but also for its stakeholders. Better transparency in reporting ESG outcomes can restore trust in business by showing that it takes action on sustainability. It can also mobilize stakeholders to contribute to progress towards sustainability goals. Addressing sustainability challenges such as climate change requires collaboration between multiple stakeholder groups in a long time-horizon and trust is essential for that collaboration to be impactful and long-lasting.