Many boards of directors (Boards) are either currently or will very soon be required to drive the strategic direction that entities take in meeting their sustainability reporting requirements. Most sustainability reporting frameworks require disclosure of the approach that an entity’s governance structure takes in addressing these issues. If boards take no action, but disclosure is still required, an entity may be required to disclose its lack of action to investors, which may have an adverse effect on the entity’s ability to raise capital and meet its investors’ demands.

The BDO publication is designed to provide Boards and Those Charged with Governance (TCWG) with the answers to the following 10 fundamental questions that all directors and audit committee members should know regardless of where an entity may be in its sustainability reporting journey:

1. What is sustainability reporting and how does it differ from ‘traditional’ financial reporting?
2. Why are investors and stakeholders demanding this type of information?
3. Will we be impacted by sustainability reporting developments?
4. What standards exist and are currently under development?
5. Which entities will have to apply IFRS Sustainability Disclosure Standards? Will all countries adopt them?
6. What are IFRS Sustainability Disclosure Standards and how are they being developed?
7. What will IFRS Sustainability Disclosure Standards require and where would entities disclose this information?
8. When will we be required to provide sustainability disclosures?
9. How will our internal controls and financial reporting systems be affected? 
10. How do we get started?

Read the full report here.

Author:

BDO IFR Advisory Limited