Diversity metrics and ESG reporting: challenges of measurement and implementation

Abstract

Diversity management has become a key element of ESG strategies, with increasing emphasis on metrics that assess inclusion and equity within organizations. This study uses a literature review approach to analyze the current state on the integration of diversity indicators within ESG reporting. The main aim is to identify key challenges, and implementation of diversity indicators in corporate sustainability reporting. By synthesizing findings from previous studies, this research provides a comprehensive overview of how diversity metrics are currently used in ESG frameworks and the difficulties organizations face in their application. A major issue in tracking the social dimension of ESG is the absence of standardized metrics, which hinders data comparability across companies and industries. The results of this study are important for corporate governance leaders, ESG managers, regulatory bodies, as well as organizations seeking to improve their diversity management initiatives and align with ESG standards, to raise awareness of the importance of reporting on diversity management practices as part of broader ESG reporting.