FINANCIAL accounting, reporting & analysis
The regulatory climate for ESG By Laura Hay, CPA, CAE, OSCPA executive vice president
Environmental, social and governance (ESG) reporting is on a rapid rise because of investor interest and an increasing body of research demonstrating a positive correlation between ESG measures and financial performance. Enterprises are realizing that ESG reporting is an effective
reporting focuses on value creation across resources and
approach for communicating purpose, connectivity and
capitals that contribute to thriving and self-sustaining
impact, as well as their capacity for long-term value creation.
organizations.
So, the potential is not limited to reporting current information about management’s activities and plans for addressing risks related to ESG matters as part of assessing the financial
International integrated reporting Global harmonization in value reporting and its integration
position of the organization.
with traditional financial reporting has risen to an economic
In a world of significant change, businesses are driven to
announced that the Value Reporting Foundation (VRF) and
provide more information, and investors and employees are
the Climate Disclosure Standards Board (CDSB) would be
seeking more accountability, creating an opportunity for
consolidated into the IFRS Foundation this year. Supported
both internal and external financial advisers to contribute to
by the G7, G20 and International Organization of Securities
long-term organizational success. The concept of integrated
Commissions, the consolidation’s goals include developing
14 | CPA Voice
imperative. In November, the IFRS Foundation announced
