Issues with assurance on SDG disclosures and NFR

by Carol Adams Main points: The consultation informing the SDGD Recommendations identified a number of gaps in assurance provision; The International Auditing and Assurance Standards Board (IAASB) is currently consulting on guidance on Extended External Reporting (EER) Assurance.  Readers will no doubt be familiar with examples of ‘green washing’ and ‘rainbow washing’ (referring the UN […]

Who can harmonise better? Five myths in the debate about the future of sustainability reporting

by Carol A Adams Main points: A proliferation of bodies setting standards and frameworks has led to a proliferation of bodies claiming to ‘harmonise’ them. Five myths are prevailing to support claims to move the authority base for standards and reduce reporting requirements. Recommendations regarding the role of key players are proposed.  COVID-19 has intensified […]

Europe needs mandatory non-financial reporting to underpin the COVID recovery

Main points: Non-Financial Reporting (NFR) is critical to building a sustainable economy post the COVID-19 crisis.  With a consultation in progress for the NFR Directive and the development of Tools and Mechanisms for the Integration of ESG factors into the EU Banking Prudential Framework and into Banks’ Business Strategies and Investment Policies the EU Commission […]

Value creation v impact

Main points: The SDGD Recommendations ask organisations to consider both value creation for the organisation and impact on the achievement of sustainable development. Key reporting frameworks are compared for their focus on contribution to value creation v impact. The SDGD Recommendations draw on the three most influential non-financial reporting frameworks/standards. Should reporting frameworks focus on […]

Airlines, COVID-19, climate change and risk reporting

COVID-19 highlights the cracks in corporate risk reporting and head-in-sand corporate governance practices.  The experience with SARS demonstrated how vulnerable airlines are to viral outbreaks, whether pandemics or not.  And recent negative coverage of Royals on private jets demonstrates public awareness of the contribution of air travel to climate change. But airlines are not acknowledging […]

Accountancy Europe’s proposal for sustainability reporting standards

Main points: Accountancy Europe has proposed new structure for sustainability and other forms of non-financial reporting Further consideration should be given to the problems that need to be addressed Any solution must involve enforced mandatory requirements for large companies Accountancy Europe’s proposed structures for sustainability and other forms of non-financial reporting mirror those of financial […]

Investors are asking the wrong questions about sustainability

by Carol A Adams When it comes to hitting the 2030 targets underpinning the UN’s 17 Sustainable Development Goals, considering risk alone will not cut it. Larry Fink’s recent emphasis on climate change risks and divesting in coal is significant, albeit a few decades late, but what about opportunities? And what about other sustainable development issues that […]

Call for improved UN Sustainable Development Goals disclosures

by Carol A Adams Main points: Sustainable Development Goals Disclosure (SDGD) Recommendations is published today by leading accounting bodies and others. The SDGD Recommendations are aligned to GRI, IIRC and TCFD. Consultation responses and a Feedback report informed the Recommendations. Consultation responses emphasised the need for accountability for value destruction and negative impacts. Recommendations calling […]

The consultation responses

by Carol A Adams Main points: Responses to Recommendations for SDG Disclosures: A Consultation Paper are now available (links below) A Feedback paper by summarising these responses and responding to the consultation input will be published shortly Recommendations for SDG Disclosures: A Consultation Paper by Carol Adams, Paul Druckman and Russell Picot was published in […]

Responses to the consultation on Recommendations for SDG Disclosures

by Carol A Adams Update (15th January 2020): The full responses are now available here Main points: Responses have been received from framework/standard setters, professional accounting bodies, reporting organisations, asset owners, asset managers, consultants and civil society participants to Recommendations for SDG Disclosures: A Consultation Paper A response to the consultation responses will be published […]