Why is this important?

Clear disclosure of which entities are covered in a company’s report is essential for accurately tracking its operations and impacts.

Context:

When we think of a company, we often think of it as one entity.  In reality, however, companies are made up of many entities – sometimes hundreds. Different types of disclosed data may relate to different entities of the same company. So depending on the topic, different entities might be relevant for you. Additionally, different entities may fall under different jurisdictions and legal systems. 

Why is just a company name not enough?

Companies may be known by various names — legal names, brand names, or trademarks — but these are often not unique, especially at a global scale. A unique ID is therefore key in making sure data extracted from a Source is attributed to the correct entity.