The world’s largest companies are providing more detailed and comprehensive information in their sustainability reporting, according to an updated report from the International Federation of Accountants (IFAC), the American Institute of Certified Public Accountants (AICPA) and the Chartered Institute of Management Accountants (CIMA), published on Thursday 22 February. They are also receiving a greater scope of assurance in relation to this information.
The study assessed the reporting and assurance practices of 1,400 companies in 22 jurisdictions between 2019 and 2022. 98% of companies disclosed certain sustainability-related information in 2022, but only 30% produced stand-alone sustainability reporting in 2022, compared with 57% in 2019.
Progress is being made towards greater connectivity between sustainability information and the financial information provided by companies. This is particularly true in the EU and other European countries, suggesting that companies are reacting to the new requirements of the ‘CSRD’ directive on sustainability reporting (see EUROPE 13346/3).
For sustainability assurance, only 22% of companies disclosed monitoring at board level, with the audit committee coming out on top by a long way.
To read the report, go to https://aeur.eu/f/az5 (Original version in French by Anne Damiani)