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Purpose-driven Business Reporting in Focus
Progress towards a Comprehensive Corporate Reporting System
As sustainability gathers momentum across industries we have seen a number of significant initiatives globally and from a European perspective that is driving companies to be more sustainable and disclosing how they are achieving this through sustainability reports. One of the biggest challenges in sustainable reporting is the consistency of data and the different frameworks that companies are using to report. There have been two recent initiatives announced, looking to drive consistency in sustainability reporting. The World Economic Forum (WEF) has published it report on progress towards global ESG reporting and the five leading international sustainability standard setters have set out a vision of a statement of intent to work to a comprehensive corporate reporting system.
New WEF report: progress towards global ESG standards
The International Business Council (IBC) of the World Economic Forum (WEF) has published its report Measuring Stakeholder Capitalism: Towards Common Metrics and Consistent Reporting of Sustainable Value Creation that includes a set of core metrics that enable companies to measure and report on sustainable value creation. Deloitte has worked in collaboration with the WEF on the project alongside the other Big 4 accounting networks.
The report follows the publication of a provisional set of metrics and disclosures at the IBC’s Winter Meeting 2020 in Davos. This was followed by a period of consultation, during which more than 200 companies, investors and other key players gave feedback. A refined set of indicators were presented to the IBC’s Summer Meeting in August 2020.
Statement of intent to work to a comprehensive corporate reporting system
The five leading international sustainability standard setters and frameworks, CDP, the Climate Disclosure Standards Board (CDSB), the Global Reporting Initiative (GRI), the International Integrated Reporting Council (IIRC) and the Sustainability Accounting Standards Board (SASB), have set out a vision and issued a statement of intent to work together towards a comprehensive corporate reporting system. It has been facilitated by the Impact Management Project, WEF and Deloitte.
The statement is hugely timely, given the public commitment by IOSCO to bring about the system change for the capital markets and the IFRS Foundation (IFRSF) trustees’ intention to consult on introducing a sustainability focused standard-setter under the umbrella of the IFRSF. It is an important milestone, which brings the world closer to embedding sustainability in mainstream corporate reporting—a transformational change for business, society and the profession.
How can Deloitte Help?
Deloitte has significant experience in assuring and advising on sustainability reporting. We can support companies in developing a sustainability reporting framework or assuring a framework based on GRI, SASB, TCFD, CDSB etc. In addition we can provide support to companies that are required to report to lenders on any green bonds/loan arrangements. Please reach out to Eileen Healy (Sustainability Reporting Lead) or Jack Lee (Audit Sustainability Lead) to learn more about how we can support your company.