Good quality reporting should cover a wide range of value drivers for organisations, beyond financial performance and position but equally beyond environmental or social impact. This includes intangibles not recognised on the balance sheet, such as innovative processes, know-how and corporate culture.
Businesses, society and the planet depend on each other. The way each organisation manages its key resources and relationships affects the value that it generates for economies, societies and nature. Conversely, organisations’ external impacts can ultimately affect its ability to create value for itself.
Corporate reporting standards should highlight the interactions between the value that organisations create for themselves, and the impact that they have on society and planet.
The information needs of investors often correspond with those of other stakeholders such as customers, suppliers, communities and policy-makers. A report that follows a robust and forward-looking approach to reporting will likely address an organisation’s most significant impacts on the economy, environment and people.
In developing this policy paper, ACCA held a Chatham House expert roundtable and consulted with members of our Global Forums for Corporate Reporting, Sustainability, and Governance, Risk and Performance. Our thanks go to everyone who provided their valuable views and advice