Consumers are increasingly concerned about the impact of their purchases. They want to know more about the companies they support, whether they agree on values and stand for social or environmental principles.   

All companies should practice corporate transparency in some form. Whether to comply with government regulations or to keep their shareholders informed, companies need to share information with external parties.  Some of them have decided to go a step further, disclosing details and information about their operations that go beyond what is required by law, and making it publicly available. 

• With understandable and easily accessible reports that are usually published on a regular basis and include data on financial performance, targets or results achieved in areas such as sustainability. They are usually accessible to the public and investors. 

• With disclosure of ESG activity, sharing detailed information on the company's social, environmental and governance impact. 

• Through proactive communication, establishing communication channels with stakeholders (including consumers, employees, investors and local communities), where they are kept informed of significant changes, progress and challenges faced by the company. 

• Complying with local and international regulations. Transparent companies report on their compliance with laws, reinforcing their truthfulness and avoiding sanctions. 

• Encouraging stakeholder feedback. Companies can consult these external opinions to detect areas for improvement. 

• Knowing how to manage moments of risk and crisis. A company can decide to live through a crisis in an honest way by communicating about the problems and the steps to solve them, maintaining the trust of stakeholders. 

Business transparency refers to the principle of acting with clarity, openness and candour in relation to the running of a business and the management of its internal operations. 

For stakeholders:

• It allows a proper assessment of the risks and opportunities associated with a company. Consumers, investors and communities affected by the organisation's operations could make informed decisions to secure their interests. 

• It promotes a responsible business model in managing the impact and relationship with the environment. 

For companies: 

• It generates trust, consolidating the organisation's positioning in the market and among investors. 

• Provides accurate and relevant information that facilitates strategic decision-making. 

• It helps to comply with regulations, preventing non-compliance and reinforcing corporate integrity and reputation. 

As the call for corporate transparency has become louder, regulations have, in turn, steered their course to ensure the moral behaviour of all companies participating in a territory. 

Examples of regulations in different countries include the European Union's Corporate Sustainability Reporting Directive (CSRD), which requires companies to disclose their environmental, social and governance impacts. In the US, the SEC has proposed new rules on climate risks and executive compensation.  

ESG reporting is one of the best strategies a company can do to be transparent. Why? 

• An ESG report clearly discloses a company's environmental, social and governance data. 

• It enables organisations to provide stakeholders with valuable insights for decision-making, highlighting potential opportunities and risks that could affect a company's valuation.