Coalitions of stakeholders in the business world agree that combating climate change stands as a crucial long-term measure. But those actions are next-to-moot if investors can’t assess and benchmark their effects with standard sustainability reporting.
In a context in which society is demanding initiatives to combat climate change, the debate on corporate sustainability reporting is more pressing than ever. The growing demand for this alternative type of reporting has led to two important developments.
First, the view that sustainability reporting should be mandatory is gradually gaining ground (unlike financial information, non-financial information is reported on a voluntary basis).
Second, there is a growing perception that we need to improve the consistency and comparability in sustainability reporting.
The Imperative of Standardized Sustainability Reporting
This issue is especially important considering the multiplicity of private organizations issuing standards and recommendations for sustainability reporting. Notable examples are the Sustainability Accounting Standards Board, the Global Reporting Initiative, the Climate Disclosure Standards Board, the International Integrated Reporting Council, and the Task Force on Climate-related Financial Disclosures (established by the Financial Stability…
