Regulations

Reporting matters study sees promising step towards more robust reporting on global issues

Oct 23, 2018

On October 23, 2018, the World Business Council for Sustainable Development (WBCSD) released its 2018 edition of Reporting matters, annual review of member companies’ sustainability and integrated reports.

This year’s report aims to show how companies are linking reporting and decision-making through three topic-specific addendum reports focused on climate change, water and human rights.

Key findings from Reporting matters 2018

The main Reporting matters publication continues to provide good-practice examples as well as general trends and benchmarks over the past five years. This is particularly useful to business because insights can be shared across sectors for collective improvement.

Highlights include:

Reporting is improving

  • 82% of member companies in our benchmark have improved their overall scores since baseline year 2014; 37% have improved their materiality score in this timespan.

The state of SDG reporting

  • 89% of reports reviewed acknowledge the Sustainable Development Goals (SDGs) in some way; 53% map their sustainability strategy to relevant SDGs and provide some evidence of activities.

The state of integrated reporting

  • 33% of reports reviewed combine financial and non-financial information, up from 22% in 2014; 18% are self-declared integrated reports.

The state of GRI reporting

  • 83% of reports reviewed reference the Global Reporting Initiative (GRI); 54% have already transitioned to the GRI Standards launched in October 2016.

Governance is improving

  • 39% of the 115 companies in our sample with ESG data on Bloomberg Terminals have links between sustainability performance and executive remuneration.

The future is digital

  • Only 20% of reports reviewed provide a digital-first experience; but 53% of member companies include the bulk of their report content online to complement their PDF report (2017: 44%).

Review the press release and report on the WBCSD's website.

Integrating the SDGs into Corporate Reporting: A Practical Guide

Oct 17, 2018

In 2018, the Global Reporting Initiative (GRI) and the United Nations Global Compact (UNGC) initiative released this publication which helps companies of all sizes to prioritize SDG targets to act and report on, set related business objectives, and measure and report on progress.

The publication outlines a three-step process to embed the Sustainable Development Goals (SDGs) into existing business and reporting processes. It helps business to better report their impact on the SDGs and address the information needs of relevant stakeholders. This Guide follows an approach that is aligned with the UN Guiding Principles on Business and Human Rights and the GRI Standards.

Review the press release and publication on the UNGC's website.

New report: Execs say blockchain adoption has been “harder than expected”

Oct 11, 2018

On October 11, 2018, Forbes published an article on how according to a report released by consulting firm Greenwich Associates, 57% of executives polled said that implementing distributed ledger technology (DLT) at the enterprise level has been harder than expected.

The report is based on data collected from more than 200 executives working on blockchain initiatives at banks, technology vendors, dedicated blockchain companies, exchanges, and consultancy firms, among others.

In the report, 42% of firms identified scalability, which refers to a network's ability to process a high volume of transactions at high speeds, as a "major issue."

Review the article on Forbes' website and the report on Greenwich Associates' website.

Federal government looks to Deloitte for insights on Canada’s competitiveness

Oct 05, 2018

On October 5, 2018, Michael Smith, Deloitte tax partner and Leader, National Tax Office delivered a presentation to the House of Commons Finance Committee on the topic of Canada’s global competitiveness with a focus on tax policy. He was joined by Craig Alexander, Deloitte’s Chief Economist.

A Q&A followed Michael’s presentation where he and Craig answered questions from Members of Parliament, offering insights on a broad range of topics—everything from the challenges to Canada’s productivity, attracting top talent, innovation, and competitiveness and business attractiveness.

The consultations are held each year by the bi-partisan Finance Committee in order to develop recommendations to the Finance Minister regarding the following year’s budget. Deloitte was one of the organizations invited to present in person during the Toronto stop of the committee’s cross-country consultations.

Review a recording and full transcript on the House of Commons Canada's website.

Discussion paper released on taxation of digital economy

Oct 02, 2018

On October 2, 2018, the Australian government released a Discussion Paper seeking views on options to move towards a “fairer and more sustainable tax system for the digitalized economy.” The Australian government remains concerned that some very profitable, highly digitalized companies pay very little tax in the countries in which they do business, including Australia.

The paper is very much a discussion paper canvassing the background issues, noting recent developments and asking a number of discussion questions. The paper does not advance a government view.

The key areas addressed by the paper include:

  • User created value
  • Value of intangibles, including marketing intangibles
  • Profit attribution rules
  • Existing nexus rules
  • Digital business or beyond?
  • Interim options

Submissions on the discussion paper are due by November 30, 2018.

Review our summary and the discussion paper on the Australian government's website.

Task Force on Climate-related Financial Disclosures : Status Report

Sep 30, 2018

In September 2018, the Task Force on Climate-related Financial Disclosures (TCFD) released its 2018 Status Report. While many companies report on environmental issues, most have yet to specifically provide the market with consistent information on the financial implications of climate change for their businesses.

While the Task Force found some of the results of its disclosure review encouraging, it also recognized further work is needed for disclosures to contain more decision-useful climate-related information. The majority of companies reviewed disclosed information that is aligned with at least one of the recommended disclosures in their financial filings, annual reports, or sustainability reports.

The review results also indicate that climate-related financial disclosures are still in early stages. This is consistent with the Task Force’s view that implementation of its recommendations is a journey and companies are in different places in terms of their exposure to climate-related risks and opportunities and their reporting capabilities.

In the coming year, the TCFD plans to vigorously support further implementation efforts.

Review the report and a summary on the TCFD's website.

IESBA Meeting Highlights September 17-20, 2018

Sep 26, 2018

On September 26, 2018, the International Ethics Standards Board for Accountants (IESBA) released the highlights of its September 17-20, 2018 meeting.

Discussion points included:

  • Revised and Restructured Code Rollout
  • IFAC Initiatives Update
  • Fees
  • Strategy and Work Plan
  • Technology
  • Professional Skepticism
  • IAASB-IESBA Coordination
  • Non-assurance Services
  • eCode
  • Alignment of Part 4B with ISAE 3000
  • Joint IAASB and IESBA Board Meeting

Review the highlights and the podcast on the IESBA's website.

What you need to know about mandatory reporting of breaches of security safeguards

Sep 17, 2018

On September 17, 2018, the Office of the Privacy Commissioner of Canada (OPC) published draft guidelines on mandatory breach reporting under the Personal Information Protection and Electronic Documents Act (PIPEDA).

The guidelines are intended to assist organizations in meeting their breach reporting and record-keeping obligations under PIPEDA’s mandatory breach reporting regime, which comes into force on November 1, 2018. Organizations have until October 2, 2018 to provide feedback on these draft guidelines.

Review the press release and draft guidelines on the OPC's website and a summary on Blakes Businness Class' website.

Senator Warren Introduces Bill to Mandate Disclosure of Climate Risk in SEC Filings

Sep 14, 2018

On September 14, 2018, the U.S. Senate released the "Climate Risk Disclosure Act", which requires public companies to disclose more information about their exposure to climate-related risks, which will help investors appropriately assess those risks, accelerate the transition from fossil fuels to cleaner and more efficient energy sources, and reduce the chances of both environmental and financial catastrophe.

In a summary published by Davis Polk LLP, the Climate Risk Disclosure Act would require the SEC to issue rules for every public company to disclose:

  • Its direct and indirect greenhouse gas emissions
  • The total amount of fossil-fuel related assets that it owns or manages
  • How its valuation would be affected if climate change continues at its current pace or if policymakers successfully restrict greenhouse gas emissions to meet the Paris accord goal; and
  • Its risk management strategies related to the physical risks and transition risks posed by climate change

The SEC can tailor the rules to different industries, and impose additional requirements on companies in the fossil fuel industry.

Review the Act on the U.S. Senate's website.

CFO Insights Special Edition: 2018 Q2 Global CFO Signals

Aug 30, 2018

In August 2018, our US firm released the report "Twin worries: Trade and talent". In the eight surveys included in this quarterly round-up, many of the responding CFOs voice upbeat outlooks. But the threat of a trade war, and concerns over talent, have many CFOs on edge.

An abundance of positive economic evidence – from strong consumer demand to favorable monetary policy – helped sustain optimism among some CFOs in the second quarter of 2018. But two issues – trade and talent – seem to be sounding an ominous drum beat and sending mixed signals in the Q2 2018 edition of Global CFO Signals.

On the positive front, many of the CFOs in the eight surveys included in this quarterly round-up, voice upbeat outlooks about their organizations’ financial prospects, growth metrics, and, countries’ economic outlooks. But it is the threat of a trade war that has many CFOs on edge. Compounding matters is the escalation of long-running concerns over talent. The fear is that these twin concerns – trade and talent – could have a chilling effect on business investment. Whether these concerns are enough to dampen the current economic momentum, remains to be seen.

How does CFO sentiment break down?

Read the 2018 Q2 Global CFO Signals to learn more.

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