Environmental, social and governance (ESG) key performance indicators for sustainable reporting

Abstract

The report is targeted at key environmental, social and corporate governance (ESG) indicators of performance. The performance indicators ESG are becoming more and more important for complex assessment of a company and of unified Sustainable Reporting. The development of key performance indicators is under development in many international institutions, e.g. UNEP, EFFAS, DVFA, CFA etc]. ESG stands for Environmental, Social and Governance. There is growing evidence that suggests that ESG factors, when integrated into investment analysis and decision making, may offer investors potential long-term performance advantages. The aim of this paper is to introduce and give theoretical possibilities of establishing ESG key performance indicators at the corporate level to support investors' decisions and to be a part of Sustainable Reporting. On the basis of theoretical knowledge was made an empirical analysis in small and medium enterprises at the Czech Republic in selected sectors with a focus on the ESG performance indicators and Sustainable Reporting.