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Index Highlights FTSE 100 ESG Transparency Gaps

Major gaps between FTSE 100 firms’ disclosed and communicated ESG performance have been identified by a ‘transparency index’ published by ESG-focused consultancy Connected Impact. The index uses a patent-pending AI platform and content analysis methodologies to generate a “comprehensive, accurate assessment of the gap between companies’ disclosures and communications”. The analysis looks to quantify the gap between what companies say and do, to help counter greenwashing and ‘greenhushing’. The analysis flagged transparency gaps between baseline disclosures and aspirational targets for FTSE 100 firms, with firms in some sectors lacking transparency on Scope 3 emissions . It also found that there was a large transparency gap existing between the disclosure of ethnic diversity at board level and at workforce level in the FTSE 100, and that mandatory diversity disclosure requirements are more effective than voluntary ‘best practice’ recommendations. Louise Nicolson, CEO at Connected Impact, said: “The transparency of our economies and businesses has never been more important. This market data gives companies the means to further improve their ESG performance when all stakeholders – from investor to consumers – rightly, persistently, seek accountability.” 

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