It’s a new era of environmental, social and governance (ESG) disclosure and directors need to take notice.

Many investors are voicing concerns about the limited nonfinancial disclosure in companies’ annual reports and proxy disclosures, even for areas like material climate-related risks that have been the subject of Securities & Exchange Commission (SEC) guidance. And although most public companies produce sustainability reports for consumers and other corporate stakeholders, these reports often lack the quality, reliability and comparability investors need for financial analysis.