The core non-financial performance metrics are substantially influenced by environmental, social and governance factors. We have identified those factors and mapped them against the ESG framework developed by the European Federation of Financial Analysts’ (EFFAS) ESG Commission. It has been tested with EFFAS members and jointly with the laboratory in focus groups of investors and companies in major European financial markets.

Not all these factors will be relevant across businesses, sectors and markets. Companies need to articulate for themselves how relevant ESG factors influence the key metrics for their business. It is also for individual companies to decide how best this information is presented. We are not recommending that the performance against the relevant factors are published or even measured. The critical issue is how the relevant factors are reflected in the key metrics for the individual company and what action the it is taking on relevant factors to improve performance against the key metrics as part of its business strategy.