Have your say on recommended SDG Disclosures

By Carol A Adams Main points: The sustainable development issues addressed by the UN SDGs will impact on long term business success. Businesses, asset owners and asset managers are incorporating the risks and opportunities they bring into their decision making. ACCA, CAANZ and ICAS have collaborated to publish SDG disclosure recommendations – accountants have a […]

Evidence of the take up of integrated reporting

Main points: Most integrated reporters reference the GRI Standards Integrated reporting is popular among SMEs 85% of self-declared integrated reporters discuss at least four capitals Japan is catching up with South Africa in terms of the number of integrated reporters In depth research commissioned and just published by the French accounting regulator, Autorité des Normes Comptable, […]

‘Harmonisation’ or dumbing down non-financial reporting?

by Carol Adams Main points: The key non-financial reporting frameworks deal with different issues and serve different audiences “Harmonisation” appears to mean simplification but the complexities facing business require a multi-faceted response – there is no one reporting framework that addresses all the issues / audiences. Corporate reporting frameworks influence what businesses focus on –  […]

Weighing the future cannot be a technical, bureaucratic exercise

by Carol Adams Main points: You can’t reduce materiality determining to a bureaucratic and technical process How you measure something can bring unintended consequences Some managers are able to weigh up complex issues with opposing impacts while others find it difficult Involved in sustainability standards for many years, including the development of the AA1000 standard […]

Understanding key stakeholder perspectives in non-financial reporting

by Xinwu He Financial reporting has long been the major topic in Corporate Reporting courses. Traditionally, students who are trained as accountants are taught to do correct accounting treatments, produce financial statements, calculate financial ratios and analyze financial information. Over the last few years, the importance of non-financial reporting has increased through sustainability/corporate social responsibility (CSR)/environmental, […]

UK FRC calls for consideration of climate change risk and importance of stakeholders to value creation

by Carol A Adams Main points: Acknowledgement that climate change presents risks for companies Recognition that stakeholders are important to the long-term success of a company Support for increasing integration of non-financial information in corporate reporting Agreement on the need for disclosures on how value is created There is a disconnect between academic research and […]

ASX consultation on Corporate Governance Principles

by Carol A Adams Main points: ‘Social licence to operate’ is inappropriate as a frame for determining climate change and other sustainability risks Boards should identify sustainable development risks in their external environment Climate change and sustainability risks should be on the Board skills matrix Minimum gender targets for women should be enforced The ASX […]

UK Green Finance Inquiry report concludes climate change risk reporting should be mandatory

by Carol A Adams Main points: Pension fund Trustees have a Fiduciary Duty to consider long term financial risks of climate change There’s a lack of regulatory mechanisms in place to ensure climate change risks are incorporated into investment decisions Recommendations of the Taskforce on Climate related Financial Disclosures (TCFD) should be mandatory and enforced […]

Pension funds adopt strikingly different approaches to climate change risk

by Carol Adams Pension funds invest for the long term and scientists have concluded that climate change poses a significant risk to all aspects of life, including water, food and energy security.  The implications for business are significant and yet investor and corporate action does not match this known impact of climate change and other […]

UK Green Finance Inquiry report released

by Carol A Adams Main points: Green investment levels have declined and are insufficient to meet legally binding carbon reduction targets Green bonds, carbon pricing, policy certainty and maintaining links with Europe are part of the solution Recommendations on increasing climate related financial disclosures under consideration The UK Government’s cross-party Environmental Audit Committee has today […]