Sustainability reporting key to profitability, success

Businesses are facing increasing demands for sustainability information from customers, suppliers, lenders, potential recruits and regulators.

Those that interconnect sustainability and financial information are more equipped to make decisions that will lead to long-term success.

They will have better access to finance, be better able to attract good-quality staff and will be more attractive to customers.

They will also be more likely to be compliant with the growing number of new sustainable business regulations and reporting requirements in this space.

Businesses and professionals are asking for more support and guidance to prepare this information.

ACCA has published a new guide, Sustainability Reporting – The Guide to Preparation.

It is being published ahead of COP28, the UN climate summit starting on November 30 in the UAE, in which ACCA is participating.

Driving forward sustainability reporting – and increasing its global adoption – will be among the topics discussed.

Aimed at professional accountants, senior management and talent developers, this guide sets out key steps to help organisations start to prepare for sustainability reporting. It includes an eight-stage reporting cycle and suggestions with examples. It can be adapted to organisations of various sizes.

The guide focuses on preparing for sustainability reporting in accordance with the inaugural International Sustainability Standards Board (ISSB) standards, but is equally relevant to organisations applying other sustainability reporting standards.

This first-in-a-series guide is complemented by a series of videos produced in partnership with the ISSB.

Report co-author Sharon Machado, head of sustainable business at ACCA, said, "Achieving quality in sustainability reporting need not be a race; what’s important is having the courage to get started, the ability to apply judgement in the context of your organisation, getting others on board and findings ways to improve."

Intended to help understand and apply the standards, the guide focuses on the first two standards – IFRS S1 and IFRS S2 – which were published in June this year.

Report co-author Hsiao Mei Chow, head of corporate reporting insights – sustainability at ACCA, added: "There’s no one-size-fits-all solution. We encourage all involved to take time to work through the suggested processes, then design processes appropriate to their organisation and implement them."

"Sustainability reporting is likely to cover a range of matters, but the emphasis should be on material information for the intended users. Determining material information about sustainability-related risks and opportunities for reporting requires a three-step approach," said report co-author Aaron Saw, head of corporate reporting insights – financial.