Including both financial and non-financial information is known as "integrated reporting" by public companies. Currently the US Securities & Exchange Commission isn’t even allowing voluntary filing of non-financial data to be included with financial reports by public companies
Interesting article in the UK’s Financial Director about yearend non-financial reporting required by UK companies as part of the EU mandate for 6,000 + public company requirement to report non-financial information to the capital markets and important stakeholders such as investors. The UK most now adopt the European Union’s own rules around the reporting on long-term risks and strategies as part of the new EU Non-Financial Reporting Directive
The IMA and the Sustainability Accounting Standards Board (SASB) have recently partnered on this topic and more than 50 of the largest US companies are beginning to use the SASB reporting framework for non-financial reporting. Many companies are beginning to prepare in anticipation of the discussed US SEC pending sustainability reporting rule for US public companies
When I look at the worldwide effort around integrated reporting (<IR>), the latest evolution in corporate disclosure, Exupery’s quote resonates with me
Countries that mismanage their water supplies as climate change effects take hold could see economic growth rates decline by as much as 6 percent by 2050, a new World Bank report claims.” Last August 2015, a Citigroup report said global inaction on climate change would wipe $44 trillion off global GDP by 2060
1 Comment - I would be interested in how we would report on things like CO2, since there are advantages and disadvantages to rising levels of this gas, as I read recently on how higher carbon dioxide has increased the plant cover of about 11 million square miles
According to the most recent posting by Broc Romanek of CorporateCounsel.net the US SEC is actively moving forward on public company disclosure of sustainability/ corporate social responsibility reporting – also know as “non-financial” – “integrated reporting” -- including disclosing such topics as board diversity. Non-financial reporting, such as sustainability and CSR/ESG reporting has expanded over the last twenty years. Many US public companies now produce an annual sustainability report (independent of the annual financial report) and there are a wide array of ratings and standards around
Interesting alarming report from the US GAO issued in January 2016 to Members of Congress on the need in the capital markets and more specifically -- public companies – to disclose in their reports and to the US SEC material risks related climate change so investors and the public can make better financial decisions. For example, risks related to the disrupting of supply chain of public companies that provides critical food, medicine, energy, and products that support the US economy can be of significant financial value to both investors and the public. The GAO report to Congress is entitled “SUPPLY CHAIN RISKS - SEC’s Plans to Determine If Additional Action Is Needed on Climate- Related Disclosure Have Evolved”… As the GAO report details to Congress in January: “For example, in October 2012, Superstorm Sandy caused widespread damage to logistics and transportation networks throughout the Northeast, leading to major fuel shortages and causing an estimated $70 billion in direct damages and lost economic output
Some companies are combining financial reporting with non-financial reporting into ONE REPORT or "Integrated Reporting" to external stakeholders that also includes natural resources and human capital -- beyond just financial information. The CFO in most cases is responsible for this additional reporting by the company
The IOSCO Growth and Emerging Markets Committee welcomes comments on the consultation report on or before 1 April 2019
The IMA supports to use of using machine-readable formats like XBRL to enhances transparency and accountability of disclosed regulatory reports to help both regulators and investors. XBRL can also be used for internal reporting and efforts are underway using XBRL for the General Ledger of companies. Fujitsu, the world’s fifth-largest IT company is using XBRL for internal reporting and has the following case study discussing its benefits and use in the organization world-wide for internal reporting