Sustainability focuses on how a company manages its economic, environmental and social impacts, risks
and opportunities. Sustainability reporting is an organization’s practice of reporting publicly on its
significant economic, environmental and/or social impacts, in accordance with globally accepted
standards. This promotes transparency and accountability, empowering stakeholders to make informed
decisions and helps the company manage its EESG (economic, environmental, social and governance)
impact.
International Sustainability Standards Board (ISSB), a standard-setting board, develop global baseline of
sustainability disclosure standards, Focus on meeting the information needs of investors, enable
companies to provide comprehensive sustainability information for the global capital markets, and
Facilitate compatibility with requirements that are jurisdiction-specific or aimed at a broader group of
stakeholders.
IFRS Standards do address issues that relate to climate-change risks and other emerging risks. The Board
is also updating its non-mandatory guidance on management commentary, where it would expect
companies to address material environmental and societal issues, complementing the information in
financial statements.
Environmental reporting defined in these guidelines refers reports and publications which are
periodically disclosed and which holistically and systematically stating the state of environmental burden
caused by organizations’ activities and environmental efforts that mitigate them, and which are in
accordance with general reporting principles of environmental reporting.
The purpose of environmental reporting is to provide a significant tool for environmental
communication and to fulfill organizations’ accountability in regards to the environmental burden.
Environmental reporting can occur in a range of media including in annual reports, in ‘stand alone’
reports, on company websites, in advertising or in promotional media. Environmental reporting is a
useful way in which reporting companies can help to discharge their accountabilities to society and to
future generations (because the use of resources and the pollution of the environment can affect future
generations). In addition, it may also serve to strengthen a company’s accountability to its shareholders.