With the recent rapid changes taking place, corporate reporting which was once focused on financial reporting is now in process of incorporating sustainability reporting, which includes environmental, social and governance matters. The move to reporting on sustainability matters of concern to investors was a major shift and was supported by regulators such as the SEC. This is likely to lead to the next step – integrated reporting, under which financial and sustainability reporting are combined and events and issues reported with a full coverage of their implications for both fields of reporting, a product of integrated thinking, that companies are being encouraged to embrace.
The Turning Point report series shows that rapid climate action can significantly boost GDP in many parts of the world, accelerating growth and providing new employment opportunities – presenting a unifying and optimistic theme for humanity.
This Financial Reporting Alert examines certain potential impacts of climate-related matters on an entity’s financial accounting and reporting in the context of the existing accounting guidance and current regulatory environment. While these impacts will vary depending on the entity’s industry and other factors, all entities should evaluate environmental-related financial accounting and reporting implications.
Deloitte conducted interviews with leaders from around the world, gathering perspectives on the challenges in delivering ESG information and the actions required to catalyze behavioral and systemic change. The perspectives vary, mimicking the lack of alignment in the ESG reporting landscape and the diverse priorities of stakeholder groups.
Deloitte research reveals that tax departments are actively helping their companies with sustainability initiatives through compliance and Environmental, Social, and Governance (ESG) reporting, with a majority feeling they are on top of sustainability for the moment. However, to keep up with the demands of sustainability, others suggest specialization and advisory support related to ESG is required.
Given the rapid rate at which risks are emerging and evolving, a dynamic approach to enterprise risk management (ERM) underpinned by strategic intelligence is no longer an aspiration for many companies. It is an imperative. As a focus on risks, opportunities, and performance related to environmental, social, and governance (ESG) issues intensifies across the marketplace, a dynamic approach to ERM powered by strategic intelligence can help integrate ESG into the business.
Environmental, Social, and Governance (ESG) issues continue to be top of mind for public companies. Some companies are just starting their ESG journey while others are working towards establishing best in class ESG practices. To assist public companies with navigating the ESG landscape, Goodwin’s Public Company Advisory Practice has prepared a presentation that can be used to inform management teams and boards of directors regarding ESG matters.
