Recent sustainability and integrated reporting developments
06 Mar 2017
A summary of recent developments at the IIRC, FRC, and SASB.
Three years after publication of the International Integrated Reporting Framework, the International Integrated Reporting Council (IIRC) has announced a two-month consultation to gauge businesses' views on the implementation of the framework, to inform on further development. Feedback is being sought from those involved with preparing integrated reports, providers of financial capital and other users of integrated reports, as well as policy makers, regulators, standard-setters, assurance providers and academics. More information is available on the IIRC website.
The UK Financial Reporting Council (FRC) has responded to the consultation document of the Task Force on Climate-related Financial Disclosures (TCFD) with recommendations on climate-related disclosures. The FRC supports the publication of the proposed disclosures as a stimulus to develop thinking and practice in this area, and as a tool to help companies identify the most appropriate disclosures for them to make. However, it believes that a list of suggested disclosures may risk companies adopting a checklist mentality and boilerplate approach. The FRC is also concerned that the size, complexity and detail of the recommendations may impair their usefulness. More information is available through the press release on the FRC's website.
The Sustainability Accounting Standards Board (SASB) has also responded to the TCFD's consultation document. The SASB supports the general climate risk framework and makes several recommendations to streamline and strengthen it. It supports the four core elements of disclosure, but has recommendations to reduce redundancies and improve usefulness. On implementation, the SASB requests that the TCFD provide more guidance related to its vision of the implementation of its recommendations. Furthermore, the SASB believes that clarification on the materiality basis for the disclosures is needed. The response also provides a summary of actions the SASB plans to take to determine how to align SASB’s standards with the TCFD recommendations. Please click for access to the response on the SASB website.