Published on: 28 October 2024
The TISCreport Transparency Report is designed to fill this gap, providing essential non-financial data that complements traditional financial reporting. By integrating transparency reporting into their ESG strategies, financial institutions can gain a more comprehensive view of the risks and opportunities that affect their long-term sustainability and performance.
The Overlooked Value of Non-Financial Data
While financial reports have traditionally been the cornerstone of risk assessment for financial institutions, non-financial data—particularly related to ESG factors—plays an equally important role. Focusing on financial metrics alone gives an incomplete view, as many of the most significant risks today, such as climate change, regulatory compliance, and social responsibility, are driven by non-financial factors.
The TISCreport Transparency Report fills in these missing pieces, offering financial institutions the insights they need to assess the full scope of ESG-related risks. This includes transparency on issues like environmental impact, labour conditions, and governance practices throughout a company’s operations and supply chains. Without this data, financial institutions are operating with half the picture, potentially exposing themselves to unforeseen risks that could harm their financial performance or reputation.
A Holistic Approach to Risk Management
Regulatory bodies around the world are increasingly demanding that businesses not only report on their own operations but also take responsibility for their entire supply chains. As laws like the German Supply Chain Due Diligence Act and the EU Corporate Sustainability Due Diligence Directive (CSDDD) take effect, financial institutions are required to evaluate companies on a broader range of ESG criteria. This requires detailed, transparent, and verifiable data—a need that the TISCreport Transparency Report is designed to meet.
By providing a real-time view of non-financial corporate behaviours, the Transparency Report helps financial institutions identify risks that financial data alone cannot reveal. From human rights violations in supply chains to environmental hazards, the insights offered by transparency reports are critical to making informed decisions that protect both financial and reputational assets.
Bridging the Gap Between Financial and ESG Reporting
Financial institutions are increasingly aware that ignoring non-financial data puts them at a disadvantage in today’s complex regulatory and investment environment. As CDP’s report reveals, 94% of investors use ESG ratings to guide their investment strategies, underlining the growing importance of these metrics in managing capital and risk. Yet, many institutions still focus predominantly on financial reports, overlooking the non-financial data that could significantly impact their portfolios.
The TISCreport Transparency Report bridges this gap by offering financial institutions a clear and comprehensive view of how companies perform against ESG standards. This allows them to see not just where the financial opportunities lie but also where the non-financial risks and opportunities exist, enabling a more balanced and informed strategy.
Unlocking Opportunities with Transparency
In addition to mitigating risks, non-financial data also uncovers opportunities for growth in sustainability-focused sectors. The TISCreport Transparency Report helps financial institutions identify companies that are leading the way in sustainability, governance, and ethical business practices—factors that increasingly drive consumer loyalty and investor confidence.
By utilising transparency reports, financial institutions can position themselves as leaders in responsible finance, gaining access to investment opportunities that are both profitable and aligned with global sustainability goals. This dual focus on financial and non-financial data offers a competitive edge, helping institutions build portfolios that are resilient and future-proof.
Conclusion: Completing the ESG Puzzle with Transparency
For financial institutions, focusing solely on financial reports leaves a crucial gap in their understanding of risk and opportunity. As the reliance on ESG ratings grows, the TISCreport Transparency Report provides the missing piece of the puzzle, offering vital non-financial data that informs better decision-making and risk management.
By integrating transparency reporting into their strategies, financial institutions can achieve a more comprehensive view of their investments, ensuring they are not only compliant with emerging regulations but also positioned for long-term success in an increasingly sustainability-driven world.
