Designing a Reporting System for Trust in Environmental Social Governance

Abstract

In an effort to make companies adhere to green practices, they are increasingly required to publicly disclose environmental, social, and governance (ESG) key performance indicators (KPIs). Typically published within annual reports, the current format may not deliver all legally mandated information, and also does not attract investors who have become more focused on sustainable investing. Thus, various industries aim at improving their ESG KPIs reporting practices, including life insurance companies. Life insurance companies need to integrate ESG-focused strategies into their client interactions to obviate greenwashing allegations and appeal to their environmentally-friendly target group. This helps them remain competitive and build long-lasting institution-based trust. To help these companies address the complexities of ESG KPIs reporting, this study proposes the development of a reporting system architecture supported by Distributed Ledger Technology (DLT) for compliant, transparent, reliable, and standardized ESG reporting.