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SUSTAINABILITY

REPORTING –

THE GUIDE TO

PREPARATION

We are ACCA (the Association of Chartered Certiﬁed

Accountants), a globally recognised professional accountancy

body providing qualiﬁcations and advancing standards in

accountancy worldwide.

Founded in 1904 to widen access to the accountancy profession,

we’ve long championed inclusion and today proudly support a

diverse community of over 247,000 members and 526,000 future

members in 181 countries.

Our forward-looking qualifications, continuous learning and insights

are respected and valued by employers in every sector. They equip

individuals with the business and finance expertise and ethical

judgement to create, protect, and report the sustainable value

delivered by organisations and economies.

Guided by our purpose and values, our vision is to develop

the accountancy profession the world needs. Partnering with

policymakers, standard setters, the donor community, educators

and other accountancy bodies, we’re strengthening and building a

profession that drives a sustainable future for all.

Find out more at accaglobal.com

About ACCA

November 2023

Organisations need to prepare sustainability-related information, either for the purposes of

their own sustainability reporting or because they are part of the value chain of a sustainability

reporter.

Sustainability reporting requirements are developing rapidly, with the IFRS Sustainability

Disclosure Standards issued by the International Sustainability Standards Board (or the ‘ISSB

Standards’) serving as the basis for globally consistent reporting. While these standards have

been developed to provide complete reporting for an investor audience, their design is such

that they should support interoperability with other sustainability reporting regimes.

This guide is the first in a series and aims to help all organisations irrespective of size, industry or

sector get started in the sustainability reporting cycle that comprises essential processes,

people and technology requirements. This is both for the ISSB Standards and as a baseline for

other regimes.

With the help of the many participants who contributed their expertise on this topic at our

global roundtables and interviews on this topic, we have identified eight stages of the

sustainability reporting cycle, which also serve as the basis for the structure of this guide,

addressing:

who is accountable and responsible for sustainability reporting

the processes for identifying material sustainability-related information for reporting

purposes

determining, collecting and reporting the data

considerations for verification that can lead to continual improvement of reporting, and

the vital role of people and technology in enabling quality reporting.

As with any series, there will be more content to come and so this guide is not exhaustive. All

are encouraged to engage continually with ACCA’s work in this area.

What this guide addresses

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SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONAboutACCAWeareACCA(theAssociationofCharteredCertiﬁedAccountants),agloballyrecognisedprofessionalaccountancybodyprovidingqualiﬁcationsandadvancingstandardsinaccountancyworldwide.Foundedin1904towidenaccesstotheaccountancyprofession,we’velongchampionedinclusionandtodayproudlysupportadiversecommunityofover247,000membersand526,000futuremembersin181countries.Ourforward-lookingqualifications,continuouslearningandinsightsarerespectedandvaluedbyemployersineverysector.Theyequipindividualswiththebusinessandfinanceexpertiseandethicaljudgementtocreate,protect,andreportthesustainablevaluedeliveredbyorganisationsandeconomies.Guidedbyourpurposeandvalues,ourvisionistodeveloptheaccountancyprofessiontheworldneeds.Partneringwithpolicymakers,standardsetters,thedonorcommunity,educatorsandotheraccountancybodies,we’restrengtheningandbuildingaprofessionthatdrivesasustainablefutureforall.Findoutmoreataccaglobal.com©2023AssociationofCharteredCertifiedAccountantsNovember2023WhatthisguideaddressesOrganisationsneedtopreparesustainability-relatedinformation,eitherforthepurposesoftheirownsustainabilityreportingorbecausetheyarepartofthevaluechainofasustainabilityreporter.Sustainabilityreportingrequirementsaredevelopingrapidly,withtheIFRSSustainabilityDisclosureStandardsissuedbytheInternationalSustainabilityStandardsBoard(orthe‘ISSBStandards’)servingasthebasisforgloballyconsistentreporting.Whilethesestandardshavebeendevelopedtoprovidecompletereportingforaninvestoraudience,theirdesignissuchthattheyshouldsupportinteroperabilitywithothersustainabilityreportingregimes.Thisguideisthefirstinaseriesandaimstohelpallorganisationsirrespectiveofsize,industryorsectorgetstartedinthesustainabilityreportingcyclethatcomprisesessentialprocesses,peopleandtechnologyrequirements.ThisisbothfortheISSBStandardsandasabaselineforotherregimes.Withthehelpofthemanyparticipantswhocontributedtheirexpertiseonthistopicatourglobalroundtablesandinterviewsonthistopic,wehaveidentifiedeightstagesofthesustainabilityreportingcycle,whichalsoserveasthebasisforthestructureofthisguide,addressing:whoisaccountableandresponsibleforsustainabilityreportingtheprocessesforidentifyingmaterialsustainability-relatedinformationforreportingpurposesdetermining,collectingandreportingthedataconsiderationsforverificationthatcanleadtocontinualimprovementofreporting,andthevitalroleofpeopleandtechnologyinenablingqualityreporting.Aswithanyseries,therewillbemorecontenttocomeandsothisguideisnotexhaustive.AllareencouragedtoengagecontinuallywithACCA’sworkinthisarea.Theguide’sresearchersandthemethodologySharonMachadoAaronSawHsiaoMeiChowHeadofSustainableBusinessHeadofCorporateReportingHeadofCorporateReportingInsights–FinancialInsights–SustainabilityThecreationofthisguidewasonlypossiblethroughinsightsfromtheaccountancy,businessandfinanceprofessionalswithexpertiseinsustainabilityreportingandassurance,changemanagement,andriskmanagement.Theseindividualsparticipatedinourglobalroundtablesandinterviewsonpreparingforsustainabilityreporting.Theyalsosharedinsightsontheassociatedethicalchallenges.Further,someoftheseparticipantsvolunteeredandreviewedthecontentsofthisguide.Weacknowledgeandthankalltheseindividualsforgivingtheirtimeandinvaluableinsights(seeAcknowledgements).ContentsFOREWORD8INTRODUCTION9Thedemandforsustainability-relatedinformationisgrowing9Sustainabilityreportingunderpinsbetterbusiness10Whatthisguideseekstoachieveandforwhom11HOWTOUSETHISGUIDE12Understandingthesustainabilityreportingcycle13Referringtothesustainabilityreportingcycle’ssupportingsuggestionsandexamples15Appreciatingandsuggestinghowthisseriesofguidesevolves15EXECUTIVESUMMARY16Sustainabilityreportingenablesthecreationandsustainingoflong-termvalue17Whatisthecalltoaction?17Thestagestofulfillingthecalltoaction17Theunderpinningactivitiesforeachstage19Whoisresponsibleandaccountableforsustainabilityreporting?221.ALLOCATINGRESPONSIBILITYFORSUSTAINABILITYREPORTING231.1Leveragethereportingprocess251.2Decidewhoareresponsible,accountable,consulted,andinformed261.3Enhancegovernance272.ESTABLISHINGTHEREPORTINGLANDSCAPE282.1Understandtheorganisationanditsenvironment302.2Identifyrelevantreportingframeworks312.3Identifypriorityareas323.DETERMININGTHEMATERIALSUSTAINABILITY-RELATEDINFORMATIONTOBEREPORTED333.1Identifyandunderstandwhatisimportant353.2Applyathree-stepapproachtodeterminematerialinformationaboutsustainability-relatedrisksandopportunities(SRROs)forreporting36Step1:Identifytheorganisation’sSRROs36Step2:AssesswhetheranySRROscouldreasonablybeexpectedtoaffecttheorganisation’sprospects37Step3:IdentifymaterialinformationabouttheSRROsthatcouldreasonablybeexpectedtoaffecttheorganisation’sprospects,forreporting403.3Reassessmaterialityjudgements424.DETERMININGTHEDATAREQUIREMENTS434.1Determinethereportingboundaryandmaterialinformationinthevaluechain454.2Setthescopeandparametersofdatacollection464.2.1Understandstakeholders’informationneeds464.2.2Aligndatacollectiontoreportingneeds464.2.3Considerdatawhilesettingmeasurablemetricsandtargets474.3DeterminethedatarequirementsforeachSRROtobereported485.COLLECTINGTHEDATA495.1Selectappropriatesourcesofdata515.1.1Identifyandunderstandexistingdatainuse515.1.2Identifyandconsideravailablesourcesofdata515.1.3Ethicallyconsidertheproportionalityofcostagainstbenefit515.2Establishthedatacollectionmethodology515.2.1Consideravailabletechnologyoptions515.2.2Alignfrequencyofdatacollectionwithreportingtimelines515.2.3Useconsistentmethodology515.2.4Maximiseuseofdatacollected515.2.5Practiseresponsibleprocurement515.2.6Keepthedata-collectionprocesssimple525.2.7Embedverificationwithinprocessesandsystems525.3Considertheuseofexternalsupport536.REPORTINGONTHECOLLECTEDDATA546.1Selectthemeansofcommunication566.2Ensureconnectivityofinformation576.3Applythequalitativecharacteristicsofgoodreporting586.4Enhancethereportingpackage597.IMPLEMENTINGREPORTING617.1Createaformalimplementationplan637.2Technologyasanenabler647.2.1Setaclearstrategyforusingtechnologytofacilitatesustainabilityreporting657.2.2Ensuretherightlevelofgovernanceisbuiltintothetechnology667.2.3Assessthecredibilityoftechnologyusedinsustainabilityreporting677.3Peopleasenablers687.3.1Makethecaseforinvestinginpeople697.3.2Whoisaccountableandwhatarethepeople-relatedsustainabilityreportingconsiderations?717.3.3Createawarenessoftheirresponsibilityamongindividualsandteams,aswellasthewhat,whyandhowofreporting727.3.4Reviewtheorganisationdesign–positioningoffunctions,capacityandaccesstocapabilities747.3.5Engageandmanageprovidersandusersofsustainability-relatedinformation787.3.6Managetalent828.VERIFYINGWHATISREPORTED,ANDCONTINUALIMPROVEMENT878.1Obtainassurance898.1.1Considerthetypeandlevelofassurance898.1.2Selectassuranceproviders898.1.3Expandtheroleoftheauditcommittee898.2Setmetricstodrivecontinualimprovement908.2.1Qualityofdataovertime908.2.2Stakeholders’feedbackonvalueofsustainability-relatedinformation908.2.3Disseminatesustainabilityknowledgeacrosstheorganisationanditsretention908.2.4Integratesustainabilityindiscussionsacrosstheorganisation90GLOSSARY91APPENDICES96AppendixA:IFRSS1sampleworksheet96AppendixB:IFRSS2sampleworksheet97AppendixC:Capabilities98ACKNOWLEDGEMENTS103REFERENCES104ForewordHelenBrandOBEHigh-qualityintegratedsustainability-relatedandfinancialinformationisvitalforthesuccessfuldevelopmentandChiefExecutive,ACCAimplementationofequitablesustainabilitystrategiesand,inturn,sustainablevaluecreation.Thedevelopmentofsustainability-relatedfinancialdisclosurerequirementsbytheInternationalSustainabilityStandardsBoard(ISSB)shoulddrivethegenerationofmuch-neededconsistentandhigh-qualityreportingofsustainability-relatedfinancialinformationtomeetinvestors’needs.Accordingly,ACCAwelcomesthedevelopmentofthesestandards,irrespectiveofwhethertheyareusedontheirownorinconjunctionwiththoseofotherreportingregimes.Nonetheless,thereisconsiderabledemandforallinvolvedtogeneratetrustedandreliablesustainability-relatedinformation.Thisdemandextendstodesigning,implementingandcontinuallyimprovingtherelevantprocessesandsystems,includingtechnology,aswellasactivitiestoequippeoplewiththenecessarycapabilitiesandwaysofworking.ACCA’sworkininfluencingrelevantpolicyandregulation,andourqualificationandeducationproductsaredevelopedtoequipourmembersandfuturemembers.Thisguide,thefirstinaseries,aimstohelpallthoseinvolvedinpreparingforsustainabilityreportingtogetstarted.Wedothisthrougharticulatingtheeightkeystagesofthesustainabilityreportingcycle,supportingitscontentswithexamplesandshortexplanatoryvideosdevelopedinconjunctionwiththeISSB.Wecallonallthoserequiring,preparingorprovidingassuranceonsustainability-relatedinformationtotaketheirtimetoappreciatetheguide’scontents.Less-well-resourcedorganisationsmaywellwishto‘startsmall’whenapplyingthisguide,butallshouldre-engagewiththisguideandtheseriesastheycontinuetoevolve.Weaskprofessionalaccountants,specifically,thatyoutakealeadingrole.Successfulsustainabilityreportingwillhelpdrivetransparency,businesschangeand,ultimately,sustainablevaluegenerationoverthelongterm.Theroleoftheprofessionalaccountantattheheartofthishasneverbeenmoreimportant.8SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONINTRODUCTIONIntroductionThedemandforsustainability-relatedInthisevaluation,integratedsustainability-relatedand1Theresourcesandtherelationshipsusedandaffectedbytheorganisationinformationisgrowingfinancialinformationwillhelpstakeholdersassesswhethercantakevariousforms.ThesearereferredtocollectivelyintheIntegratedtheprofitabilityofaprofit-orientedorganisationcanbeReportingFrameworkasthe‘capitals’andarecategorisedasfinancial,Today’sglobalandever-changingbusinessworldandthesustainedforthelong-term,orwhetherapublicsectormanufactured,intellectual,human,socialandrelationship,andnaturalenvironmentinwhichorganisationsoperatemeanthat,organisationcancontinueprovidingpublicservices.In(IFRSFoundation2023c).regardlessofsize,industryandlocation,theywillbeaddition,certainstakeholdersmightwanttoassessrequiredtoprovidesustainability-relatedinformationinwhetherandtowhatextenttheseprofitsorserviceswere2AsofSeptember2023,sustainabilityreportinginaccordancewiththesomeform.Thismaybeowingtomandatoryrequirementsdeliveredattheexpenseoftheenvironmentorsociety.EuropeanSustainabilityReportingStandards(ESRS)willbemandatoryforrelatingtothejurisdictionofoperationorbecausetheallorganisationssubjecttotheCorporateSustainabilityReportingDirectiveorganisationispartofthevaluechainofasustainabilityFailuretoprovidesuchinformationmayresultinnegative(CSRD).TheEuropeanCommissionintendedthatthesereportsshouldhelpreporter.implicationsfortheorganisation,beitthroughtermsofstakeholdersevaluatethesustainabilityperformanceoforganisations,astradeandfinanceorwithdrawalofresourcesprovidedbypartoftheEuropeanGreenDeal(Source:EuropeanCommission2023a).Stakeholders,whetherinvestors,suppliers,consumers,stakeholders.Forexample,thebesttalentorsuppliersregulatorsoremployees,areseekingbetterevaluationsmaychooseotherorganisationstoprovidetheirhuman,Elsewhere,governments,regulators,andstockexchanges,suchasthoseinoforganisations’stewardship:forexample,relatingtointellectualandmanufacturedcapitals.1Brazil,Malaysia,NewZealand,Singapore,theUKandtheUS,haveenvironmental,socialandfinancialissues.TheseincorporatedtheTaskForceonClimate-relatedFinancialDisclosuresstakeholderswanttounderstandaspectsof:Amplifyingthedemandforreportingarethegrowing(TCFD)recommendationsintolaws,rulesandguidanceonclimate-relatedregulatoryrequirementsonorganisationstobemorefinancialdisclosure,orreferencedtherecommendationsasabasisfortheirmanagementofresources,risksandopportunitiesequitableandsustainableinhowtheyoperate.Inturn,thisdisclosurerequirements(TCFD2022).Thelatterareoftenreferredtoasbuildingofcultureandbrand,andisdrivingactionbyorganisationsandtheirvaluechainstoTCFD-aligneddisclosurerequirements.attitudesandapproachestoinnovation,whichareprovidesuchinformation,evenifnotintheformatofaformalsustainabilityreport.2TheISSBStandardsarelikelytobeendorsedandadoptedbymanyessentiallythepreludetorecognisingintangibleassetsjurisdictionsfollowingendorsementbytheInternationalOrganizationofwithinthefinancialstatements.Therefore,manyorganisationsareturningtheirattentionSecuritiesCommissions(IOSCO),withrecommendationstoits130membertoimplementingprocessesandsystemstosupporttheirjurisdictionstoconsiderhowtheycanincorporatetheISSBStandardsintoevolvingreportingneeds.theirrespectiveregulatoryframeworkstoproduceconsistentandcomparablesustainability-relatedinformationacrosstheglobe.Together,thesecapitalmarketsauthoritiesregulateover95%oftheworld’ssecuritiesmarkets.Growthandemergingmarketsmakeup75%ofIOSCOmembership(IFRSFoundation2023a).9SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONINTRODUCTIONSustainabilityreportingunderpinsbetterbusinessOrganisationsmaybefamiliarwiththe‘waterfall’approachtodevelopingastrategy,implementingit,managingrisksandthenreportingexternallyonprogress.Sustainabilityreportingrequirements,however,extendtoexplainingtheapproachaswellastheprogressmade–formanyprofessionalaccountantsthisisabigchange.Thismoreholisticreportingrequirementwilldeliverbenefitsbeyondthecorepurposeofthereport(seeBoxA).BoxA:PotentialsynergiesfromsustainabilityreportingShorttermMediumtermLongtermMorethoroughlyconsideredImprovedcommunicationwithImprovedresilienceandlongevitywaysofworking,includinginternalandexternalstakeholderschangestotheorganisation’sMaintainsociallicencetooperategovernance,businessmodel,BettercapitalandresourcepoliciesandcodesofconductallocationPositivebrandreputationClearerunderstandingofitsChangeinculturetomoregenerallyOverallimprovedfinancialvalue-creationprocessembedsustainabilityperformanceandmarketvalueImprovedoperationalMindsetshifttowardsbeingmoreImprovedtalentattractionandefficiencyforward-thinkingandintegrativeinretentiontotheorganisationwithapproachestoproblemsolvingtherequireddriveandcapabilitiesImprovedcustomerretentionforsustainablebusinesstransitionAttractingsustainability-consciousinvestorsandlenderstoprovideAttractingthenextgenerationofaccesstogreenfinanceproductstosustainability-consciouscustomersfundmoresustainableactivitiesHigh-qualitysustainability-relateddataThesepotentialsynergiesmaynotalwaysemergeinthisorder,asthepaceatwhichtheyemergewilldependontheorganisation’suniquecircumstances.Somebenefitsmayberealisedconcurrently,whileothersmaycarrythroughacrossdifferentperiods.Thislistofpotentialsynergiesisnotexhaustive.10SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONINTRODUCTIONWhatthisguideseekstoachieveandforwhomTomeetdemandsforreportingandrealisepotentialsynergies,thisfirst-in-the-seriesguidesetsoutimportantconsiderationstostartpreparingforsustainabilityreporting.Weprovidesuggestionssupportedwithexamplesthatarerelevanttoallresponsibleandaccountablefortheprocess-,technology-andpeople-relatedmattersassociatedwiththepreparationforandmanagementofsustainabilityreporting.Theinsightswithintheguideareintendedtobesector-agnosticandcanbeadaptedtoorganisationsofvarioussizesindifferentindustries.Forexample,less-well-resourcedorganisationsmaywishtosimplifystepsbyconsolidatingorintroducingthempiecemeal.WhiletheguidefocusesonpreparingforsustainabilityreportinginaccordancewiththeISSBStandards,the‘building-blocks’natureoftheISSBStandardsandhowACCAhasdevelopedtheguidemakeitequallyrelevanttoorganisationsapplyingothersustainabilityreportingframeworksorstandards.Therefore,inthisworkweaimtosupportseniormanagement,talentdevelopersand,ofcourse,professionalaccountantsacrossawiderangeofdifferentorganisations.11SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONHOWTOUSETHISGUIDEHowtousethisguide12SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONHOWTOUSETHISGUIDEUnderstandingthesustainabilityreportingcycleOrganisationsembarkingonthesustainabilityreportingjourneywoulddowelltoestablishasustainabilityreportingcycle,settingoutwhatneedstobedone,how,whenandbywhom.Thereareeightstagestothesustainabilityreportingcycleandtheseformthebasisforthestructureofthisguide(seeBoxB).Theeightstageshavebeendevelopedwithproportionalityinmind,andoutline:whoisaccountableandresponsibletheprocessesforidentifyingmaterialsustainability-relatedinformationforreportingpurposesdetermining,collectingandreportingthedataconsiderationsforverificationthatcanleadtocontinualimprovementofreporting,andtheroleofpeopleandtechnologyasvitalenablers.13SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONHOWTOUSETHISGUIDEWhenundertakingsustainabilityreporting,theremaywellBoxB:Thesustainabilityreportingcyclebeinstanceswhenworkingononestagemaynecessitateconsideringanotherstageorpartswithinastage.ForReportingAllocatingEstablishinginstance,newinformationdiscoveredwhencollectingdataontheresponsibilitythereportingforreportingmayprompttheorganisationtorevisittheforsustainabilityidentificationofsustainability-relatedrisksandcollectedlandscapeopportunities(SRROs)thatcouldreasonablybeexpecteddatareportingDeterminingtoaffecttheorganisation’sprospectsormaterialthematerialinformationaboutthoseSRROs.Beyondreporting,theCollectingVeriﬁcationsustainability-organisationmayalsorevisititsstrategyformanagingitsthedataEnablers:relatedSRROs.informationplan,tobeInsupportofasimplerengagement,wehavedesignedtechnology,reportedtheguidesuchthateachstagecanbeengagedwithandpeopleindependentlyofanother.Whererelevant,wehaveImprovementincludedlinksoroutlinestokeyinterconnectedcontentfromotherstages.WeencourageallinvolvedtotaketimeDeterminingtoworkthroughthesuggestedprocesses,thendesignthedataprocessesappropriatetotheirorganisationandimplementthem.There’snoone-size-fits-allsolution.It’srequirementsalsoessentialtoreflectandreturntothecycletobuildincontinualimprovement.ThosedesigningandNote.Anorganisation’smainengagementwiththecyclewillusuallyfollowtheclockwiseflowsuggested.Inimplementingprocessesforthefirsttimemaywishtopractice,whenengagingwithaparticularstage,theorganisationmayfinditnecessarytoreturntoanearlierstageengagewiththisguide’scontentpiecemeal,andallareencouragedtoreturnregularlytoitskeymessages.oroneoftheearlierunderpinningactivitiesdetailedwithinapreviousstage.Finally,werecommendthattimebeinvestedindocumentingtheimplementedprocesses,aneffortthatwillberewardedwithbenefitsof:effectiveandefﬁcientmanagementofresourcestomeetreportingrequirements,includingfromaregulatoryperspectiveensuringacleardirectionandcollaborationamongallwhoareinvolvedinthesustainabilityreportingjourney,includingthosewithinanorganisation’svaluechainbetterquality,andcontinualimprovementsin,reporting,anddemystifyingwhatmayseemadauntingprocess.14SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONHOWTOUSETHISGUIDEReferringtothesustainabilityreportingInsomeinstances,suggestionsorexamplesinthisguideAppreciatingandsuggestinghowthisseriescycle’ssupportingsuggestionsandexamplesmayexceedtherequirementsoftheISSBStandards.ofguidesevolvesThesesuggestionsorexampleshavebeenincludedtoThisguideissupportedbyshortexplanatoryvideosillustrateagoodpracticefortheorganisation’sWhiletheeightstagesarelikelytoremainunchanged,theaddressingsomeofthemorecomplexconceptsandconsideration.Thesuggestionsandexamplesthatfeaturedetailwithinwillchange,becausesustainabilityreportingrequirementsoftheISSBStandards(ACCAn.d.a).Youcanoutlinethevitalconsiderationsforprocess,peopleandaddressesmanydifferentmatters,oftenformanyusethesevideostogainaquickoverviewofthereportingtechnology.Theywillassistinbetterappreciationofthestakeholderswithdifferentinterests.Thishasthepotentialrequirements.stageswithinthesustainabilityreportingcycle,aswellasformakingprovisionofallrelevantguidanceatthesamethebenefitsofengagingwithprovidersoftimenearlyimpossibleandprobablyoverwhelmingforHowever,thisguideandtheexplanatoryvideosdonotsustainability-relateddata,technologyvendorsorotherthoseresponsibleforpreparation.Further,thereflectalltherequirementsoftheISSBStandards,orotherstakeholders.TermsdefinedintheGlossaryareinitalicssustainabilityreportingrequirementswillevolve,meaningsustainabilityreportingframeworksorstandards.thefirsttimetheyappearinthisguide.thatthedetailwithinthestageswillalsoneedtochange.Accordingly,thisguideandtheexplanatoryvideosdonotsubstitutereadingtheISSBStandards,orotherapplicableTherefore,keepabreastofourworkinthisareaofframeworksorstandards.sustainabilityreporting:therewillbemoreinthisseries,includingfurthersupportforless-well-resourcedNothinginthisguidewillmodify,ieitwillneitheradd,organisations.Wearealsointerestedtolearnmoreaboutremove,norchange,anyrequirementsintheISSBtheprogressbeingmadeinsustainabilityreportingandStandards,orothersustainabilityreportingframeworksortherelatedneedsoforganisationsandaccountants,andstandards.Whererelevant,referencestotherequirementssowewillcontinuetoconnectwiththoseengagedwithoftheISSBStandardsarementionedinthefootnote.ACCA’sworkinthisspace.15SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONEXECUTIVESUMMARYExecutivesummary16SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONEXECUTIVESUMMARYSustainabilityreportingenablesthecreationWhatisthecalltoaction?andsustainingoflong-termvalueThekey,andstriking,differencebetweensustainabilityTheorganisationsinvestingindevelopingorcontinuallyreportingandfinancialreportingisthegreateremphasisinimprovingtheirsustainabilitystrategiesandassociatedtheformeroncommunicatingtheapproachthatreportingaremostlikelytobenefitfromalsobeingorganisationsaretakingtoidentifythesustainability-financiallysustainable–notjustforthelongtermbutmorerelatedrisksandopportunities(SRROs),howtheyinformimmediately.strategyandthebusinessmodel,andinturn,thesettingoftargetsandmetrics,togetherwithassessingprogress.Sustainability-relatedinformation,especiallywhenEssentially,thisdemandsreflection,judgementandintegratedwithfinancialinformation,equipsallinvolvedinexternalisingtheapproachtogovernancewhich,formanyorganisationaldecision-makingwiththeinsighttobusiness,financeandaccountancyleaders,willmeanaappreciatebettertheinterconnectionsandshiftinbehavioursandmindsetbeyondreportingoftheinterdependenciesthatexistbetweensocial,financialpositionandperformanceofastrategy.environmentalandculturalfactorsandinnovation,financialandmanymorematters.Inturn,thesedecision-makersareAdditionally,attheoutset,gettingstartedwillalmostbetterinformedwhenevaluatinganddecidingonthecertainlydemandspendingtimeandeffortinreviewingtrade-offsbetweenthesemattersovertheshort,mediumoperationalprocesses,institutingsystems–includingandlongterm,therebyhelpingtofacilitateajusttransitionemergingtechnologies–andequippingallinvolvedwithtoamoresustainableworld.Theyarealsomoreabletotherelevantcapabilities.meetthedemandsforsustainability-relatedinformationfromtheirmanystakeholderswhoarealreadyengagedAchievingqualityinsustainabilityreportingneedn’tbeawithsustainability,whethercustomers,suppliers,race;instead,it’sacyclebasedonknowingwhatyouwantemployeesorinvestors.Arguably,andmostcrucially,toachieve,equippingyourselfwiththecapabilities,theseorganisationswillcomplywithgrowingamountsofstartingthecycle,gettingothersonboard,andalwaysregulationrelevanttotheorganisation’soperations.reassessingforcontinualimprovement.Centraltothisishavingthecouragetogetstarted,theabilitytoapplySustainability-relatedinformationcantakemanyforms,judgementinthecontextofyourorganisation,especiallyincludinginformationtofulfilprocurementandvaluechainindealingwithuncertaintyandthescaleofwhatliesservice-levelrequirements,productlabellingandahead,andfindingwaystoimprove.marketinginformation.Forcorporatereporting,formalsustainability-relatedinformationmaybeintegratedintoThestagestofulﬁllingthecalltoactionorpresentedalongsidefinancialinformation.Therefore,ingettingstarted,manyorganisationsmayAfailurebyorganisationstoownanddisclosetheirneedtodesign,implementandcontinuallyimprovesustainability-relatedinformationmaywellmeanthatincrementallyupontheactivitieswithinthecycleofstagesotherswillusetoolssuchasdigitalmethods,includingproposedinthisguide.Thereareintotaleightstages,artificialintelligence(AI),toapproximateit(Telling2023),eachwithseveralunderpinningactions(seeBoxC).sanctionsfromregulators,andlessfavourabletermsoftradeandfinance.17SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONEXECUTIVESUMMARYBoxC:ThesustainabilityreportingcycleReportingAllocatingEstablishingontheresponsibilitythereportingforsustainabilitycollectedlandscapedatareportingDeterminingthematerialCollectingVeriﬁcationsustainability-thedataEnablers:relatedinformationplan,tobetechnology,reportedandpeopleImprovementDeterminingthedatarequirementsNote.Anorganisation’smainengagementwiththecyclewillusuallyfollowtheclockwiseflowsuggested.Inpractice,whenengagingwithaparticularstage,theorganisationmayfinditnecessarytoreturntoanearlierstageoroneoftheearlierunderpinningactivitiesdetailedwithinastage.18SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONEXECUTIVESUMMARYTheunderpinningactivitiesforeachstageAsstatedinthesection‘howtousethisguide’,theeightstagesarelikelytoremainunchanged,buttheunderpinningactivitiesmaywellneedrefiningandcertainlywillbeaddedto.ACCAwillupdatethesustainabilityreportingcycleasneeded;therefore,keepabreastofourfutureworkonthis.Fornow,thekeyactivitiesrelatingtoeachstageincludethosesetoutinTableA.TableA:UnderpinningactivitiesforeachofthereportingstagesSTAGESTAGEUNDERPINNINGACTIVITIESAllocatingresponsibilityforsustainabilityreportingLeveragethereportingprocessDecidewhoareResponsible,Accountable,Consulted,andInformedEstablishingtheEnhancegovernancereportinglandscapeUnderstandtheorganisationanditsenvironmentDeterminingthematerialIdentifyrelevantreportingframeworkssustainability-relatedIdentifypriorityareasinformationtobereportedIdentifyandunderstandwhatisimportantApplyathree-stepapproachtodeterminematerialinformationaboutSRROsforreportingStep1:Identifytheorganisation’sSRROsLeverageexistingriskmanagementorbusinessplanningprocessesScantheenvironmentandexternalsourcesIdentifySRROscentrallyoratasuitablecomponentStep2:AssesswhetheranySRROscouldreasonablybeexpectedtoaffecttheorganisation’sprospectsAssesstheextenttowhichidentifiedSRROscouldaffecttheorganisation’sprospectsPrioritisetheSRROsthatcouldreasonablybeexpectedtoaffecttheorganisation’sprospectsValidatetheSRROsthatcouldreasonablybeexpectedtoaffecttheorganisation’sprospectsStep3:IdentifymaterialinformationabouttheSRROsthatcouldreasonablybeexpectedtoaffecttheorganisation’sprospects,forreportingReassessmaterialityjudgements19SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONEXECUTIVESUMMARYSTAGESTAGEUNDERPINNINGACTIVITIESDeterminingthedatarequirementsDeterminethereportingboundaryandmaterialinformationinthevaluechainCollectingthedataSetthescopeandparametersofdatacollectionUnderstandstakeholders’informationneedsReportingontheAligndatacollectiontoreportingneedscollecteddataConsiderdatawhilesettingmeasurablemetricsandtargetsImplementingreportingImplementingreporting:DeterminethedatarequirementsforeachSRROtobereportedtechnologyasanenablerSelectappropriatesourcesofdataIdentifyandunderstandexistingdatainuseIdentifyandconsideravailablesourcesofdataEthicallyconsidertheproportionalityofcostagainstbenefitEstablishthedatacollectionmethodologyConsideravailabletechnologyoptionsAlignfrequencyofdatacollectionwithreportingtimelinesUseconsistentmethodologyMaximiseuseofdatacollectedPractiseresponsibleprocurementKeepthedatacollectionprocesssimpleEmbedverificationwithinprocessesandsystemsConsidertheuseofexternalsupportSelectthemeansofcommunicationEnsureconnectivityofinformationApplythequalitativecharacteristicsofgoodreportingEnhancethereportingpackageCreateaformalimplementationplanSetaclearstrategyforusingtechnologytofacilitatesustainabilityreportingEnsuretherightlevelofgovernanceisbuiltintothetechnologyAssessthecredibilityoftechnologyusedinsustainabilityreporting20SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONEXECUTIVESUMMARYSTAGESTAGEUNDERPINNINGACTIVITIESImplementingreporting:MakethecaseforinvestinginpeoplepeopleasenablersWhoisaccountableandwhatarethepeople-relatedsustainabilityreportingconsiderations?Verifyingwhatisreported,andcontinualimprovementCreateawarenessoftheirresponsibilityamongindividualsandteams,aswellasthewhat,whyandhowofreportingReviewtheorganisationdesign–positioningoffunctions,capacity,andaccesstocapabilitiesEmphasisetheenhancedandincreasinglyconnectedroleoftheriskandfinancefunctionsInvestininternalauditEnablegloballydistributedwaysofworkingformulti-jurisdictionalandbetterintegrationofreportedinformationCreateflexiblecollaborativeandtechnology-enabledenvironmentfordata,insightsandfeedbackloopsEngageandmanageprovidersandusersofsustainability-relatedinformationIntroducesustainabilityreportingtherightway–attherighttimeandwiththerelevantrolesSetexpectationsforcontinualchangeBuildinopportunitiestolearnfromsustainabilityexpertsorcollaboratetoovercomesomeoftheresourcechallengesEmbedcompliancewiththeethicalcodeamongallusingsustainabilityreportingcontentManagetalentKnowthecapabilitiesrequiredDetermineandimplementthestrategytoaccesstherequiredcapabilitiesMeasureandrewardcommitmentandprogressDevelopandimplementthestrategyforretainingtalentObtainassuranceConsiderthetypeandlevelofassuranceSelectassuranceprovidersExpandtheroleofauditcommitteeSetmetricstodrivecontinualimprovementQualityofdataovertimeStakeholders’feedbackonvalueofsustainability-relatedinformationDisseminatesustainabilityknowledgeacrosstheorganisationanditsretentionIntegrationofsustainabilityindiscussionsacrosstheorganisation21SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONEXECUTIVESUMMARYWhoisresponsibleandaccountableforsustainabilityreporting?Everyonewithintheorganisationislikelytohavesomeresponsibility,fromthoseinriskmanagement,finance,humanresources,andtechnology,tothoseinoperationalfunctions,includingsupply-chainmanagementfunctions.Therefore,thosechargedwithgovernanceintheorganisationwillneedtodemonstratesustainabilityreportingleadership,beingaccountableforensuringthatresponsibilitiesforreportingareclearandareproperlyassumed.Responsibilityforproducingthesustainabilityreportislikelytobecomeanincreasingpartoftheprofessionalaccountant’srole,notleastbecauseoftheincreasingneedtopresentaholisticstoryofsustainability-relatedandfinancialperformance,positionandfutureprospects.Further,theprovisionofsustainability-relatedinformationisnotlimitedtolargeorcomplexorganisationsso,insmallerorganisations,resourceconstraintsarelikelytomakethefinancefunctionresponsibleforsustainability-relatedinformation.22SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION1.ALLOCATINGRESPONSIBILITYFORSUSTAINABILITYREPORTING1.Allocatingresponsibilityforsustainabilityreporting23SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION1.ALLOCATINGRESPONSIBILITYFORSUSTAINABILITYREPORTINGFigure1.1:Thesustainabilityreportingcycle:allocatingresponsibilityReportingAllocatingEstablishingAllocatingresponsibilityforontheresponsibilitythereportingsustainabilityreportingforsustainabilitycollectedlandscapeLeveragethereportingprocessdatareportingDeterminingthematerialDecidewhoareResponsible,Accountable,CollectingVeriﬁcationsustainability-ConsultedandInformedthedataEnablers:relatedinformationEnhancegovernanceplan,tobetechnology,reportedandpeopleImprovementDeterminingthedatarequirements24SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION1.ALLOCATINGRESPONSIBILITYFORSUSTAINABILITYREPORTINGSustainabilityreportingisasubsetofcorporatereportingBox1.1:Keyparticipantsintheﬁnancialreportingprocesswhich,inturn,isessentiallyaboutaccountabilityandcommunication(ACCA2021b).WhereasthecorporateMANAGEMENTDIRECTORSEXTERNALSTAKEHOLDERSreportingfocushaspreviouslybeenonfinancialreporting,AUDITORStoday’sapproachincorporatessustainabilityreporting,PreparefinancialApprovefinancialMakedecisionswhichprovidesamoreholisticviewoftheorganisation.statementsstatementsAuditfinancialbasedonfinancialstatementsInthisstage(Figure1.1),theguidanceweproviderelatesstatementstothefollowingactivities:REGULATORSleveragingthereportingprocessReviewfinancialstatementsandoverseetheperformanceofthedirectorsandexternalauditorsdecidingthosewhoaretoberesponsible,Source:CAANZandACCA(2017)accountable,consultedandinformedenhancinggovernance.1.1LeveragethereportingprocessDecidingwhointheorganisationshouldberesponsibleforsustainabilityreportingbeginswithlookingattheexistingfinancialreportingprocess.Asinfinancialreporting,eachparticipantinthesustainabilityreportingprocesshasaroleinensuringthatrelevant,useful,comparable,reliableandconsistentinformationisprovidedtoenableprimaryusersandotheruserstomakeinformeddecisions.Foralargeorganisation,otheruserscanincludeindividualsfromriskmanagement,finance,humanresourcesandtechnology,aswellasthoseinoperationalfunctions,includingthesupply-chainmanagementfunction.Itisimportanttonotethatwhilethereportingprocessmaynotchangesignificantlyonthesurface,theorganisationstillneedstoconsiderhowtherolesandinteractionsamongtherespectiveparticipantsmightneedtochange(seeBox1.1).25SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION1.ALLOCATINGRESPONSIBILITYFORSUSTAINABILITYREPORTING1.2Decidewhoareresponsible,accountable,Box1.2:WhatisaResponsibilityAssignmentMatrix(orRACIChart)?consulted,andinformedTheResponsibilityAssignmentMatrix(orRACIChart)(Friedman2008)spellsouttherolesofallstakeholders,fromAnorganisationshouldnotstopatidentifyingandwithinandoutsidetheorganisation,fromallparticipatingdepartments.Italsoguidesinternalcommunicationsbydecidingwhoisresponsible–itisequallyimportanttoclearlyidentifyingwhoreceivesinformation,howfrequently,andatwhatlevelofdetail.identifyanddecidewhoamongthosealongthereportingprocessareaccountable,consultedandkeptinformed.RACIstandsfor‘Responsible,Accountable,ConsultedandInformed’.Typically,eachroleintheactivityforeachtaskisHavingasufficientlydetailedResponsibilityAssignmentassigned,atmost,onlyonetypeofparticipation(ieR,A,CorI).AssigningaroletomorethanonetypeofMatrix(or‘RACIChart’)inplacecaneasecommunicationparticipationindicatesthatthelevelofparticipationhasyettobefullyresolved,whichwilllimittheclarityandvalueandensureclaritythroughouttheorganisation,bythatthismatrixcanbringtotheorganisation.ensuringthateveryoneisalwaysonthesamepage(seeBox1.2).DetailscouldincludeinformationabouthowAnexampleofhowaResponsibilityAssignmentMatrixcanbedevelopedisillustratedbelow.oversightisexercisedinasituationwhereparticularresponsibilitiesweredelegated.Withthisinplace,theRelevantResponsibleAccountableConsultedInformedorganisationcanthenlooktoreviewingandupdatingitsactivity[doesthetask][signsofftaskas[providesinput[madeawareattermsofreference,mandates,andotherpoliciestoreflectbasedonhavingthehigh-level,changeswherenecessary.Activity1Egindividual(s)havingbeenknowledgeand/orusuallydoesnotfromoperationalsatisfactorilyunderstandingofTheresponsibilityforproducingthesustainabilityreportisActivity2segment,divisioncompleted]needthefulllikelytobecomeanincreasingpartoftheprofessionalorcomponent.thetask]details]accountant’srole,forreasonsincludingtheneedtoEgheadofpresentaholisticstoryaboutanorganisation’soperationalThiscanincludeEgoverallheadtosustainability-relatedandfinancialperformance,position,segment,divisionsubjectmatterwhomtheandfutureprospects.Becauseprovidingsustainability-orcomponenttoexpertsaswellasaccountablerelatedinformationisnotlimitedtolargeormorewhomtheresponsibleindividualreports.complexorganisations,itisalsolikelythatmuchsmallerresponsibleindividualsfromorganisationsfacingresourceconstraintswillmakeindividual(s)otherrelevantresponsibilityforsustainability-relatedinformationareport(s).operationalrequiredpartoftheroleofthefinancefunction.segments,divisionsorcomponents.Egiftheactivityissensitivetochangesinlocaljurisdictionallegislation,individualsfromthelegalteamorwiththerelevantlegalbackgroundmightfallwithinthiscategory.Activity326SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION1.ALLOCATINGRESPONSIBILITYFORSUSTAINABILITYREPORTING1.3EnhancegovernanceBox1.3:SamplequestionsthatthosechargedwithgovernancecanaskseniormanagementThosechargedwithgovernancehaveavitalroleinTheboardofdirectorscanmakesustainability,andreportingonit,anorganisationalprioritybyincludingitasaoverseeinganorganisation’sstrategy,decisionsonmajorstandingitemonitsboardmeetingagendas.Questionsthatpreviouslyfocusedonfinancialreportingcanbetransactions,anditsriskmanagementprocessandrelatedexpandedtocoversustainabilityreportingaswell,asillustratedbelow.policies.Withsustainabilityreportingdevelopments,thegovernanceroleisexpandingtoincludesustainabilityandCanyougiveusabriefWhathasmadeyouWhatwerethekeyrelatedreportingconsiderations,includingconsiderationsoverviewoftheprocessforconfidentabouttheofanynecessarytrade-offsassociatedwithSRROsinaccuracyandintegrityoftheassumptionsmadeinpursuitofajusttransition.3Forexample,thesemightpreparingthesustainability-relatedandincludeconsideringtheenvironmentalimpactsofbuildingsustainability-relatedandfinancialinformationpreparingthesustainability-newoperationsagainstemploymentopportunitiesthatfinancialinformationintherelatedandfinancialwouldbecreatedforthesurroundingcommunity.organisation’sannualreport,reported?informationreported?Regardless,careisneededtoavoida‘compliancemindset’andensurethatgovernanceisnotreducedtoaincludingthereviewbox-tickingexercise(ACCA2018a).processes?SeniormanagementshouldsupportthosechargedwithWhatweretheareasHaveanyexternalreviewsIfapplicable,werethegovernanceintheiroversightofSRROsthroughtheuseofrequiringthemostbeenundertaken(iebyacontrolsandprocedures,whichshouldbeintegratedjudgementandhowdidyouregulator)?Ifso,whatwereexternalauditorsand/orconsistentlyacrosstheorganisation’sinternalfunctions.mitigateanybiasthatmaysustainabilityassuranceWherethosechargedwithgovernancehavedelegatedhaveaffectedthesethefindingsoftheseresponsibilityforaparticularrole,thereshouldbeaclearreviewsandhowareprovidersengagedtolineofreportingandoversightexercisedoverthatpositionjudgements?recommendationsarisingundertakeanyadditional(seeBox1.2),withclearexpectationssetonthescopeandfromthereviewbeingfrequencyofreportingtothosechargedwithgovernance,engagements(ietaxinordertofacilitatetimelydecision-makingandeffectivemanaged?oversight.complianceorconsultancyGovernanceisimportantforallorganisations,irrespectiveservices)?ofsize.LargeorganisationsarelikelytohavemorecomplexgovernancestructuresspanningacrossdifferentSource:AdaptedfromCAANZandACCA(2017)functionsandcomponents.Incontrast,asmallerorganisationmightfindthatthemajorityofitsgovernancerolesareheldbyasmallgroupofindividuals.WesetoutinBox1.3somequestionsthatthosechargedwithgovernance,orauditcommittees,canposetoseniormanagementinfulfillingtheirexpandedrole.3IFRSS1,paragraphs27and33(c).27SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION2.ESTABLISHINGTHEREPORTINGLANDSCAPE2.Establishingthereportinglandscape28SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION2.ESTABLISHINGTHEREPORTINGLANDSCAPEFigure2.1:Thesustainabilityreportingcycle:establishingthereportinglandscapeReportingAllocatingEstablishingEstablishingthereportingontheresponsibilitythereportinglandscapeforsustainabilitycollectedlandscapeUnderstandtheorganisationanditsenvironmentdatareportingDeterminingIdentifyrelevantreportingframeworksthematerialIdentifypriorityareasCollectingVeriﬁcationsustainability-thedataEnablers:related29informationplan,tobetechnology,reportedandpeopleImprovementDeterminingthedatarequirementsSUSTAINABILITYREPORTING–THEGUIDETOPREPARATION2.ESTABLISHINGTHEREPORTINGLANDSCAPEBeforechartingapathandmakingkeydecisions,itisBox2.1:Ahigh-levelillustrationofhowdifferentcorporatereportinginitiativesﬁttogetherimportant,first,tounderstandandevaluatewheretheorganisationcurrentlystandsinrelationtosustainabilityOthercorporatereportsGRIreportingandtheenvironmentinwhichitisoperating(broaderstakeholderfocus)Jurisdictionalinitiatives(Figure2.1).Sustainability-relatedIFRSSustainabilityDisclosureStandardsCorporatereportingappliesa‘buildingblocks’approach,ﬁnancialdisclosuresJurisdictionalinitiativeslayeringsustainabilityandotherdisclosureswithfinancialdisclosures.ReportingframeworksappliedareoftenaGeneralpurposeFinancialstatementsIFRSAccountingStandardscombinationofmandatoryandnon-mandatoryﬁnancialreportOtherGAAPrequirements,whichcanbeatinternational,regional(investorfocus)and/ornationaljurisdictionlevels,withcertainrequirementsapplyingtoallorganisationsandotherrequirementsbeingindustryspecific.SeeBox2.1forahigh-levelillustrationofthe‘buildingblocks’approachshowinghowdifferentcorporatereportinginitiativesfittogether.Inthisstage(Figure2.1),theguidanceweproviderelatestothefollowingactivities:understandingtheorganisationanditsenvironmentidentifyingrelevantreportingframeworksidentifyingpriorityframeworks.2.1UnderstandtheorganisationanditsSource:AdaptedfromIFRSFoundation(2023b)ManagementCommentaryenvironmentIntegratedReportingAsastart,thoseresponsiblecanaskthesequestionsto30determinetheparameterswithinwhichtheapplicablereportingframeworksshouldbeidentified.Wheredoestheorganisationoperate?Thiscoverstheorganisation’slegalformandwhereitisphysicallylocated,aswellasthejurisdictionsinandwithwhichtheorganisationcarriesoutitsactivities.Thesecanbeatinternational,regionaland/ornationallevels,andcanincludeactivitiescarriedoutonlinethroughavirtualplatform.Inwhichindustriesistheorganisationinvolved?Alargerormorecomplexorganisationmightbeinvolvedinarangeofactivitiesspanningmultipleindustries,whichmightbe(thoughnotnecessarily)interrelated.Eachindustryislikelytohaveitsownsetofrequirements,withcertainindustries,egfinance,healthcare,beingmoreheavilyregulatedthanothers.SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION2.ESTABLISHINGTHEREPORTINGLANDSCAPE2.2IdentifyrelevantreportingframeworksBox2.2:SourcesofinsightforpotentialpolicydevelopmentandthereportinglandscapeNext,theorganisationshouldidentifythelegislation,TheworkoforganisationssuchastheOrganisationforEconomicCo-operationsandDevelopment(OECD)highlightjurisdictionalandindustryrequirements,relatingtotheenvironmentalandsocietalaspectsofconcern(OECDn.d.a)andtheareasforpotentialpolicyinterventionssustainabilityreporting,thatareapplicabletothe(OECDn.d.b).Monitoringofsuchpolicieswillassistinidentifyingandreportingonsustainability-relatedrisksandorganisation.Everyorganisation,regardlessofsizeandopportunities(SRROs),andpossiblythedevelopmentoffuturesustainabilityreportingstandards.complexity,needstocomplywithacombinationofjurisdiction-andindustry-specificdisclosurerequirements,Further,ifthedevelopmentofreportingrequirementsinEuropereflectswhatistocomeforotherjurisdictions,thenwhichcandifferincomplexitydependingonwhereandallorganisationsshouldkeepawatchfuleyeonthese.howtheorganisationoperates.YearInscopeRequiredtopublishwithTheorganisation’slegalformislikelytodeterminetheassurancebyaCSRD-compliantextenttowhichrequirementsapply,andthelevelof2025Large,listedcompanies;largebanks;largeinsuranceundertakings;disclosuresrequired.Forexample,companiesoftenhaveandsomelargecompaniesinscopeoftheEuropeanUnion(EU)assurerESRS-compliantdifferent,ifoverlapping,reportingrequirementsfromNon-FinancialReportingDirective(NFRD)sustainabilityreportsfortheothertypesoforganisations,suchassoleproprietorships,periodcommencingonorafterpartnerships,clubs,societiesandcooperatives.Similarly,publiclytradedorganisationsarelikelytohavedisclosure1January2024requirementsthataredifferentfromandmorestringentthanthosefororganisationsthatarenotpubliclytraded.2026LargeEU-listedandnon-listedcompaniesnotcurrently1January2025inscopeoftheEUNFRDAnorganisationoperatingacrossmultiplejurisdictionsmighthavetheaddedcomplexityoffirsthavingto2027Listedsmallandmedium-sizedentities(SMEs)andnon-EU-listed1January2026considerthebasedisclosurerequirementsthatpertaintoSMEsandinsuranceundertakingsallorganisationsoperatingineachjurisdiction.Theorganisationwillneedtobealerttothepossibilitythata2029ListedSMEsthatoptedoutfrom2026and2027reporting1January2028subsidiaryoperatinginadifferentjurisdictionfromitsparentmightberequiredtomakedisclosuresatthesame2029Non-EUcompanieswithsubstantialactivityintheEU1January2028levelas,orinagreaterlevelofdetailthan,itsparent.Then,theorganisationneedstooverlaythatbasewithatthegrouplevelindustry-specificrequirementsintherespectivejurisdictions,andconsiderhowtheseapplytogetherandinteractwiththeorganisation'soverallstructureandvaluechain.Carewillalsobeneededtoconsiderwhethertherearealsointernationalorregionalrequirementsthattheorganisationmustcomplywithinadditiontonationalrequirements.Iforganisationskeepawatchfuleyeonareasforpolicydevelopmentpertainingtoencouragingsustainablebusinesspractices,theycanalsogainaheadstartonfuturereportingrequirements(seeBox2.2).TherequirementtoreportusingEuropeanstandardsextendstocertainnon-Europeanorganisationstoo.Europeanorganisationsmayalsoneedtofollowtheirownreportingrequirementsplusthoseofotherjurisdictions.Source:AdaptedfromEuropeanCommission2023b;requirementscorrectasatJuly2023.31SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION2.ESTABLISHINGTHEREPORTINGLANDSCAPEThereafter,theorganisationcanidentifythoseadditional2.3Identifypriorityareasnon-mandatoryreportingframeworksthatitwishestoHavingworkedthroughtheabovestages,theorganisationadopt.Anorganisation’sselectionofrelevantreportingisnowreadytoprioritisewhereitwillfocusitsefforts–frameworksshouldalignwithandcomplementitsstrategicinitialfocusmightbeonmandatoryrequirements.Thereisvisionanddirection.Itwillalsoneedtoassesshowthealsoaneedtoensurethatithasmonitoringactivityinselectedreportingframeworkswillinteractwith,andtoplace,asthisisanevolvingspacewhererequirementsmaywhatextenttheycancomplement,themandatorychangefromtimetotime,atapacethatcandifferfromrequirementsthattheorganisationmustadheretoacrossonejurisdictionorindustrytoanother,andisoftenallthejurisdictionsandindustrieswithandinwhichitinfluencedbytheirrespectivelevelsofmaturity(seeBoxoperates.Forinstance,localrequirementsmaybealigned2.4).withtheframeworkrecommendedbytheTaskForceonClimate-relatedFinancialDisclosures(TCFD)(seeBox2.3).Forexample,anorganisationinvolvedinthehealthcareindustrymayprioritiseimplementingmandatoryBox2.3:Exampleoflayeringanon-mandatoryregulatoryrequirementsoverimplementingencouragedreportingframeworkoverlocalmandatorybestpractices.reportingrequirementsWhileanorganisationmaydecidetoapplymultipleAnorganisationcurrentlyapplyingitslocalframeworksincommunicatingitssustainabilityjourney,itTCFD-aligneddisclosurerequirementstoitsalsoneedstoremainmindfulofitsavailableresourcesforsustainabilityreportingmaydecidetoapplytheISSBachievingthatgoal.ThistopicisexploredingreaterdetailStandards,whichmayyettobeadoptedintheinsection7.3.jurisdictioninwhichitoperates.Box2.4:IdentifyingpriorityareasAsdisclosuresmadeusingtheISSBStandardsarealsoincompliancewiththeTCFDrecommendations,‘Intermsofevaluatingthelandscape,evaluatingthethisislikelytoeasetheorganisation’sapplicationoflegislation…makingthatkeydecisiononwhichtheISSBStandards.Evenso,itstillneedstoperformlegislationwearegoingtofollowfirst–What’stheagapanalysistoassesstheextenttowhichexistingpriorityforus?WhichoneeventuallybecomesmoredisclosuresmeettherequirementsoftheISSBstrict?…Thisisamovingspace’(achange-Standards,whichcansometimesgobeyondthemanagementconsultant).TCFDrecommendations.Indoingso,theorganisationwillneedtobemindfulof,andresolvedifferencesarisingfrom,thetwoframeworks’useofsimilar,butnotidentical,language.TheycanalsoassesshowthetransitionreliefsintheISSBStandardsmightbehelpfulintheinitialstageofimplementation.Transitionreliefsareonlyapplicableduringthetransitionperiod,however,andaplantowardsfullimplementationwillbeneededinthelongerterm.32SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION3.DETERMININGTHEMATERIALSUSTAINABILITY-RELATEDINFORMATIONTOBEREPORTED3.Determiningthematerialsustainability-relatedinformationtobereported33SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION3.DETERMININGTHEMATERIALSUSTAINABILITY-RELATEDINFORMATIONTOBEREPORTEDFigure3.1:Thesustainabilityreportingcycle:determiningthematerialsustainability-relatedinformationtobereportedReportingAllocatingEstablishingDeterminingthematerialontheresponsibilitythereportingsustainability-relatedforsustainabilityinformationtobereportedcollectedlandscapedatareportingDeterminingIdentifyandunderstandwhatisimportantthematerialCollectingVeriﬁcationsustainability-Applyathree-stepapproachtodeterminethedataEnablers:relatedmaterialinformationaboutsustainability-relatedinformationrisksandopportunitiesforreportingplan,tobetechnology,reportedReassessmaterialityjudgementsandpeopleImprovementDeterminingthedatarequirements34SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION3.DETERMININGTHEMATERIALSUSTAINABILITY-RELATEDINFORMATIONTOBEREPORTEDSustainabilityreportingislikelytocoverarangeofmatters3.1IdentifyandunderstandwhatisimportantdeterminingwhichsourcesofguidanceintheISSBbut,forittobeusefultoprimaryandotherusers,theStandards,orotherreportingstandards,toapplyemphasisshouldbeonmaterialinformation.Inthisstage,Beforereporting,anorganisationneedsfirsttotheguidanceweprovideadviseson:understanditsbusinessmodel,strategyandvaluechain.identifyingSRROsthatcouldbereasonablyexpectedEstablishing(orrevisiting)theorganisation’spurposeandtoaffecttheorganisation’sprospectsidentifyingandunderstandingwhatisimportantvisioncanhelptheorganisationchartitsdirectionbetter,applyingathree-stepapproachtodeterminematerialtoachieveitsaspirations,egtowardsachievingnetzero,identifyingmaterialinformationtobedisclosed,indecarbonisationefforts,effluentreduction.accordancewiththestandardthatspecificallyappliesinformationaboutsustainability-relatedrisksandtoanSRRO;intheabsenceofastandardthatopportunities(SRROs)forreportingAnorganisation’sreportingneedsarelikelytobedrivenspecificallyappliestotheSRRO,judgementisappliedreassessingmaterialityjudgements(Figure3.1andby:toidentifyinformationthatisrelevanttotheBox3.1).decision-makingofprimaryusersoftheorganisation’stheinformationneededbytheorganisation’sseniorgeneralpurposefinancialreports,andfaithfullyBox3.1:ExplanatoryvideosonISSBStandardsmanagementandthosechargedwithgovernancetorepresentsthatSRROmakeinformeddecisionsWatchtheseexplainervideos(ACCAn.d.a)tohelpassessingwhetheraneventorchangeincircumstancesyouunderstandtherequirementsintheISSBthemandatoryreportingrequirementstowhichtheissignificantandrequiresreassessmentofthescopeofStandards.organisationissubject,andallaffectedSRROsthroughouttheorganisation’svaluechainGeneraloverviewofIFRSS1:SustainabilitythelegitimateinformationneedsofprimaryandotherGeneraloverviewofIFRSS1:TheTCFDusers.(ACCA2021b)Atthesametime,reportingforinternalandexternalpurposesshouldbeascloselyalignedaspossible,bothinstructureDisclosuresthatmeetthesereportingneedswillbecontentandfrequency,tooptimiseoperationalefficiencyKeyfeaturesofIFRSS2guidedbytheorganisation’smaterialityassessmentandandusefulness.Thiscanhelporganisationsreducetheirrequireconsiderablejudgement.Theorganisationwillreportingburden.needtomakevariousjudgementsindeterminingthematerialsustainability-relatedinformationtobereported.4IFRSS1,paragraph75andAppendixC.Forexample4in:35SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION3.DETERMININGTHEMATERIALSUSTAINABILITY-RELATEDINFORMATIONTOBEREPORTED3.2Applyathree-stepapproachtodetermineusescenarioanalysis,takingintoaccountforward-materialinformationaboutsustainability-lookinginformationtoidentifySRROsrelatedrisksandopportunitiesforreportingassessrisksandopportunitiesarisingfromtheproductDeterminingmaterialinformationaboutSRROsforlifecycleassessment(LCA)(seeBox3.2).reportingneedsathree-stepapproach:Section7.3onpeople,specificallysection7.3.4,providesStep1:identifytheorganisation’sSRROsguidanceonhowexistingprocessesmaybeenhanced.Step2:assesswhetheranySRROscouldreasonablybeBox3.2:Conductaproductlifecycleassessmentexpectedtoaffecttheorganisation’sprospects,thentoidentifySRROsandmoreStep3:determinematerialinformationabouttheAproductLCAhelpsanorganisationtoevaluatetheSRROsthatcouldreasonablybeexpectedtoaffectthecapitals,includingnaturalcapitals,initsvaluechainorganisation’sprospects,forreportingexternally.(ACCA2021a).A‘product’maybeeithergoodsorservices.Anorganisation’sdependenciesontheseThesizeandcomplexityoftheorganisation,andthecapitalsanditsimpactsonthosecapitalsmaygiveresourcesandcapabilitiesofthepeoplemanagingtherisetoSRROsfortheorganisation.Forexample,anprocess,maydecidewhetherthesestepshappenattheorganisationcouldbeexposedtotherelatedsameordifferenttimes,andbedonebythesameorconsequencesofSRROsfacedbystakeholdersdifferentpeople.Aless-well-resourcedandlesscomplexthroughoutitsvaluechain.organisationmayfavourconductingthethreestepstogether,asthesamepeoplearelikelytoberesponsibleAproductLCAaids:forthetasks.Incontrast,largerandmorecomplextheidentificationofSRROsacrosstheproductlifeorganisationsmaychoosetocarryoutthesestepsseparately,withtheaddedgranularityofconsideringthemcycleatdifferentlevelsorgeographiclocations.theidentificationofmetricsforinternalandStep1:Identifytheorganisation’sSRROsexternalreportingtheidentificationoftheinterconnectionsandLeverageexistingriskmanagementorbusiness-planningprocessestrade-offsbetweenthecapitals,fordecisionAnorganisationmayuseitsexistingriskmanagementmakingprocessorbusiness-planningprocesstoidentifyitstheidentificationofdataneeds,includingSRROs.IFRSS1requiresanorganisationtousereasonablesignpostingstakeholderengagementandsupportableinformationthatisavailableattherequirementstoacquirethisdata.reportingdatetoidentifySRROs,includinginformationaboutpastevents,currentconditions,andforecastsofTohelpyou,ACCA’sProfessionalAccountantsfutureconditions5.TheremaybegapsiftheexistingriskChangingBusinessforthePlanet–Asimpleguidetomanagementorbusiness-planningprocesswasnotnaturalcapitalmanagementforperformancedesignedtoidentifyandmanageSRROs,butsuchmanagers(ACCA2021a)providesamodifiedprocessescanbeenhancedto:productLCAapproach,andincludesreferencestoLCAconsultantswhocanprovidespecificadviceorassessrisksandopportunitiesarisingfromnewconducttheLCA.objectivesornewsustainability-relatedtargetsthattheorganisationhassetforitselforisrequiredtomeetasa5IFRSS1,paragraphB6(a).resultoflawsandregulations36SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION3.DETERMININGTHEMATERIALSUSTAINABILITY-RELATEDINFORMATIONTOBEREPORTEDScantheenvironmentandexternalsourcesunderestimated.Itcouldresultinbothfinancialandthescopeoftheorganisation’svaluechain,includingBesidesidentifyingSRROsfrominformationthatissustainabilityimplicationsfortheorganisation.Technologyitsbreadthandcomposition,inrelationtoeachofdevelopedinternally,theorganisationmayfurthersuchasdataanalyticsandartificialintelligencecanbethoseSRROs7.(SeeBox3.3)considertheapplicabilityof:usedtoscourtheinternetandsocialmediaforconcernsorsentimentsabouttheorganisationandtheindustriesitisBox3.3:DeterminingwhethertheSRROscouldrelevantsustainabilityreportingstandardsand/orinvolvedin,toidentifySRROs.reasonablybeexpectedtoaffecttheframeworkstoidentifySRROsthatareapplicabletotheorganisation’sprospectsinthecontextoftheorganisation,egrefertorequirementsandsourcesofIdentifySRROscentrallyoratasuitablecomponentISSBStandardsguidanceintheISSBStandards6IdentifyingSRROsmaybedonecentrallyordelegatedtoasuitablecomponentoftheorganisation.TheorganisationIFRSS1setsouttherequirementsforidentifyingandcorporatereportsofcompetitorsorindustrypeersformayuseacentral-to-componentapproach,adeterminingSRROsthatcouldreasonablybeSRROs(andrelatedmetricsandtargets)thatotherscomponent-to-centralapproach,oracombinationofbothexpectedtoaffecttheorganisation’sprospectsbuthaveidentifiedandassesswhethertheseareapplicableapproaches.doesnotdictateanyparticularprocess.AntotheorganisationorganisationisrequiredtoexplainitsprocessesandInusingacentral-to-componentapproach,alistoftherelatedpoliciesitusestoidentify,assess,environmentalandsocietaltrendsordriversofchangeSRROsisidentifiedandmaintainedcentrally.ThislistofprioritiseandmonitorSRROs,andtheextenttothatmayresultinSRROsfortheorganisationSRROsisthensharedwithcomponentsinthewhich,andhow,theseprocessesareintegratedinto,organisation.Thesecomponentsseniormanagementandinform,itsoverallriskmanagementprocess8.socialmediaplatformsornewschannelsfornewsandwillassesstheextenttowhicheachSRROcouldaffectviewsabouttheorganisation.theirrespectivecomponents’prospects.AssessedThesearchforinformationtoidentifySRROsthatSRROsarethenaggregatedandprioritised(orranked)couldreasonablybeexpectedtoaffectitsprospectsScanyourindustrypeersorcompetitorscentrally.neednotbeexhaustive.OrganisationsarerequiredWhenscanningthecorporatereportsofcompetitorsortouseallreasonableandsupportableinformationindustrypeersforSRROsthatothershaveidentified,Inusingacomponent-to-centralapproach,SRROsarethatisavailableatthereportingdatewithoutundueconsiderwhetherdatathathasbeenmadepubliclyidentifiedbyeachcomponentandthenaggregatedcostoreffort.available:centrally.TheextenttowhicheachSRROcouldaffecttheorganisation’sprospectsisassessedcentrally,Theassessmentofwhatconstitutesunduecostorcanbeusedbytheorganisationinitsownscenariotogetherwithseniormanagementofallcomponents.effortdependsontheorganisation’sspecificanalysisandreporting,orAssessedSRROsarethenprioritised.circumstances.ItrequiresabalancedconsiderationofthecostsandeffortsfortheorganisationandthecanbalanceitseffortsincollectingdatafromStep2:AssesswhetheranySRROscouldbenefitsoftheresultinginformationforprimarystakeholdersupanddownitsvaluechain.reasonablybeexpectedtoaffecttheusers9.Thatassessmentisnotstaticandmaychangeorganisation’sprospectsovertimeascircumstanceschange.ScantheworkofexpertsorotherauthoritativesourcesTheworksoftheIntergovernmentalPanelonClimateAssesstheextenttowhichidentiﬁedSRROscouldWatchthisexplainervideotohelpyouunderstandChange(IPCC),orotherauthoritativesourcesmayhelpinaffecttheorganisation’sprospectstherequirementsintheISSBStandards:identifyingSRROs.TheIPCCpreparescomprehensiveInassessingwhethertheidentifiedSRROscouldassessmentreportsaboutthestateofscientific,technicalreasonablybeexpectedtoaffecttheorganisation’sMateriality,whattodiscloseandwhenandsocio-economicknowledgeonclimatechange,itsprospects,evaluate:(ACCAn.d.a).impactsandfuturerisks,andoptionsforreducingtherateatwhichclimatechangeistakingplace(IPCC2023).Thetheorganisation’sdependenceonresourcesand6IFRSS1,paragraphs54–59andAppendixC.latestIPCCassessmentreportmayhelpanorganisationrelationshipsthroughoutitsvaluechaintogenerate7IFRSS1,paragraphB6.identifyclimate-relatedrisksandopportunities(andcashflowsandhowitsactivitiesandoutputsaffect8IFRSS1,paragraphs44(a)–(c).relatedmetricsandtargets)thatapplytoitand/orprovidethoseresourcesandrelationships,and9IFRSS1,paragraphB10.assumptionsandparametersthatcouldbeusedinitsclimate-relatedscenarioanalysis.37ScanthecyberworldMeanwhile,thespeedatwhichsocialmediaandnewschannelsspreadsinformationandinfluencesthepublic’sperceptionofanorganisationshouldnotbeSUSTAINABILITYREPORTING–THEGUIDETOPREPARATION3.DETERMININGTHEMATERIALSUSTAINABILITY-RELATEDINFORMATIONTOBEREPORTEDAsignificanteventorsignificantchangeincircumstancesPrioritisetheSRROsthatcouldreasonablybeexpectedmaycausethescopeofanorganisation’sSRROstotoaffecttheorganisation’sprospectschange,evenwhentheorganisationisnotdirectlyRegardlessoftheapproachtaken,thosechargedwithinvolvedinthoseeventsorcircumstances.(SeeBox3.4.)governanceshouldhaveoversightoftheprocessofprioritising(orranking)theSRROsthatcouldreasonablyBox3.4:Couldsigniﬁcanteventsorsigniﬁcantbeexpectedtoaffecttheorganisation’sprospects.Thischangesincircumstancestriggerreassessmentprocessmayformpartofanorganisation’sbusinessofaffectedSRROs?planningprocess.ThegovernancebodythatisresponsibleforoversightofSRROscouldbetheboard,aAsignificanteventorsignificantchangeincommitteeorequivalentbodychargedwithgovernance.circumstancescanoccurinwhichtheorganisationisWhiletheISSBStandardsdonotspecifythenotdirectlyinvolved,butwhichstillaffectsit.Thisresponsibilitiesofthosechargedwithgovernance,theymayalsoariseasaresultofachangeinwhattherequiredisclosuresongovernancetoenableprimaryusersorganisationassessestobeimportanttoprimarytounderstandthegovernanceprocesses,controlsandusersofitsgeneralpurposefinancialreports.proceduresusedtomonitor,manageandoverseetheorganisation’sSRROs12.Examplesofsuchsignificanteventsorsignificantchangesincircumstancesinclude10:ValidatetheSRROsthatcouldreasonablybeexpectedtoaffecttheorganisation’sprospectsasignificantchangeintheorganisation’svalueDeterminingwhichSRROscouldreasonablybeexpectedchain(forexample,asupplierinthevaluechaintoaffecttheorganisation’sprospectsisakeymatterofmakesachangethatsignificantlyaltersitsimportanceandheavilysubjective.Judgementsdrivethegreenhousegas(GHG)emissions)contentsforsustainabilityreporting,andindeedthesustainabilitystrategyitself.Thatfactwarrantseffortstoasignificantchangeintheorganisation’sbusinesscarryoutvalidationtochallengeassumptionsthatthemodel,activitiesorcorporatestructure(fororganisationhasdeterminedtherightSRROs.Agreatwayexample,amergeroracquisitionexpandstheofdoingthisistovalidatetheSRROswithstakeholdersorganisation’svaluechain),and(seeBox3.5).asignificantchangeintheorganisation’s10IFRSS1,paragraphB11.exposuretoSRROs(forexample,asupplierinthe11IFRSS1,paragraphB11.valuechainisaffectedbyanewregulationthat12IFRSS1,paragraph26.theorganisationhadnotanticipated).Ontheoccurrenceofsuchasignificanteventorsignificantchangeincircumstances,theorganisationisrequiredbyIFRSS1toreassessthescopeofallaffectedSRROsthroughoutitsvaluechain11.38SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION3.DETERMININGTHEMATERIALSUSTAINABILITY-RELATEDINFORMATIONTOBEREPORTEDBox3.5:ValidatingtheSRROswithstakeholdersIncertaincircumstances,aparticularSRROcouldbeThevalidationprocessmaybeginwithstakeholdersrelevantforreportingif:otherthantheprimaryusers.ThenextstepistoValidatingtheSRROsthatcouldreasonablybevalidatewhetherinformationaboutanSRRO,eitherexpectedtoaffecttheorganisation’sprospectswithitsinformationisrelevanttoexternalstakeholders,individuallyorincombinationwithotherinformation,keystakeholdersmayunveiltherealconcernsofotherthanprimaryusers,asitaffectsthemortheismaterialtoprimaryuserswhentakenasawhole.eachstakeholdergroupwhileestablishingwhetherenvironment,orTheapproachforvalidatingSRROswithstakeholderstheorganisationhasdeterminedtherightSRROs.isnotstandardisedandcanbeadaptedfortheThesekeystakeholdersinclude:itisconsideredmaterialinthecontextofanotherdifferentstakeholdergroups(Datamaran2023).reportingframeworkorstandardthattheorganisationinternalstakeholders,suchassenioris/willbecomplyingwith,orSeeFigure3.2foranexampleofhowassessingmanagement,thosechargedwithgovernance,SRROsthatcouldberelevantforreportingmaylookandotheremployeeslaworregulationspecifyrequirementsfordisclosurelike.abouttheparticularSRRO.primaryusersofgeneralpurposefinancialreports,suchasshareholders,investorsandlendersFigure3.2:AssessingSRROsthatcouldberelevantforreportingotherexternalstakeholders,suchaskeysuppliersRelevancetoandimpactonHighCouldberelevantforreportingEvaluate:andcustomersinthevaluechain,andregulators.stakeholdersotherthanprimaryusersinthecontextofanotherLowreportingframeworkorstandardtheorganisation’sAssessingtheextenttowhichdifferentkeyLowdependenceonstakeholderscareabouttheSRROsthathavebeenTypicallyresourcesanddetermined(ACCA2021b)maybedonethrough:relevantforrelationshipsreportingthroughoutitsexistingsources,suchasemployeeengagementasperthevaluechaintosurveys,customersurveys,socialmediaISSBgeneratecashinteractionsandquestionsraisedatinvestorStandardsflows,andpresentationsandannualgeneralmeetingshowitsactivitiesspecificstakeholderengagementtogainandoutputsaffectfeedbackonSRROsthatcouldreasonablybethoseresourcesexpectedtoaffecttheorganisation’sprospects,andrelationshipsthroughinterviews,meetings,andworkshops.Affectingtheorganisation’sprospects(primaryuser’sperspective)HighOrganisationsthatoperateinmultiplejurisdictionswouldneedtobealertforSRROsandtheassociatedinformationthatmayberelevantforreportingwithinthecontextofonereportingframeworkorstandard,thoughitmaynotbeconsideredmaterialinanother.Forexample,anorganisationmayreportitssustainability-relatedinformationinaccordancewiththeISSBStandardsandtheEuropeanSustainabilityReportingStandards(ESRS).Thelatterrequiresustainabilitymatterstobeassessedusingthedoublematerialityprinciple.Note.Thisdiagramisforillustrationonlyandisnottoscale.OrganisationsmayfindotherwaysthataremoresuitablefortheircircumstancestoillustratetheassessmentofSRROsthatcouldreasonablybeexpectedtoaffecttheorganisation’sprospects.39SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION3.DETERMININGTHEMATERIALSUSTAINABILITY-RELATEDINFORMATIONTOBEREPORTEDStep3:IdentifymaterialinformationaboutThedynamicpaceatwhichanSRROcanaffectantheSRROsthatcouldreasonablybeorganisation’sprospects–evaluatewhatcancauseanexpectedtoaffecttheorganisation’sSRROtoaffectanorganisation’sprospectsandhowprospects,forreportingquicklyitcanhappen(seeBox3.8).ThethresholdthatdistinguishesmaterialinformationfromBox3.6:Consideringinﬂuencesonusers’non-materialinformationwillbeuniquetoeachinvestingdecisionsorganisation.‘Ifwedidn’tdisclose[informationabout]thisSRRO,Indeterminingmaterialinformationforreportingaboutwoulditmakeadifferencetousers’investingtheSRROsthatcouldreasonablybeexpectedtoaffectthedecision?’(ariskmanagementexpert).organisation’sprospects,thefollowingfactorsneedtobeassessed:Box3.7:AssessingthepotentialeffectsandlikelihoodoffutureeventsTherequirementsofrelevantsustainabilityreportingstandardsorframeworksthatspecificallyapplytoInsomecases,SRROsmightrelatetoapossiblethatSRRO.futureeventwithuncertainoutcomes.InformationaboutsuchSRROsismorelikelytobematerialiftheTheinformation’srelevancetotheorganisation’spotentialeffectswouldbesignificantandtheeventpurposeandbusiness,bytakingintoaccounttheislikelytooccur13.Forsuchcases,theorganisationnature,magnitudeandlikelihoodofactualorneedstoassess:anticipatedeffectsfromtheSRROs.thepotentialeffectsoftheeventsontheamount,Itsrelevancetokeyinternalandexternaltiminganduncertaintyoftheorganisation’sfuturestakeholders–ifinformationaboutanSRROishighlycashflowsovertheshort,mediumandlongtermscrutinisedbyprimaryusers,itcouldbematerialfor(referredtoas‘thepossibleoutcome’),andreportingregardlessofthemagnitudeofitspotentialtherangeofpossibleoutcomesandtheeffects(seeBox3.6).likelihoodofthepossibleoutcomeswithinthatrange14.Bothquantitativeandqualitativefactors,suchasthemagnitudeandthenatureoftheeffectofanSRROon13IFRSS1,paragraphB23.theorganisation,shouldbeassessed.Differentfactors14IFRSS1,paragraphB22.maybeusedforenvironmental,socialorgovernancetopics.Thesefactorsmayincludethelevelofgreenhousegas(GHG)emissions,numberofemployees,revenueorprofit,amongothers.TheextentofmanagingtheSRRO,suchasputtingcontrolsaroundit,andwhetherthecontrolswilltriggerremedialactions.Suchactionsmayincludestoppingsomethingentirely,changingthewayofdoingsomething,orsharingtherisk.IftheimportanceofmanagingtheSRROandputtingcontrolsarounditcanbejustified,informationabouttheSRROismostprobablymaterial.Thepotentialeffectsandlikelihoodoffutureevents–informationaboutanSRROismorelikelytobematerialifthepotentialeffectsaresignificantandtheeventislikelytooccur(SeeBox3.7).40SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION3.DETERMININGTHEMATERIALSUSTAINABILITY-RELATEDINFORMATIONTOBEREPORTEDBox3.8:TherelationshipbetweenmultipleformsofmaterialityInformationneedsofprimaryusersmayevolveoverFigure3.3:Anillustrationoftherelationshipbetweenmultipleformsofmaterialitytime15.Organisationsneedtobeforward-lookingandproactivelyidentifyandevaluatetriggersthatInformationaboutSRROsthatarenotyetmaterialforreportingmayrapidlycauseSRROstoaffectanorganisation’sprospects.Whenithappens,informationaboutanynamicialityImpactmaterialityaterialitySRROthatappearsimmaterialtodaycanquicklyDateramicmbecomematerialtomorrow(WEFandBCG2020).DynmHence,materialityassessmentisacontinuousprocessthatrequiresconsiderablejudgement.ThisMaterialityaspertheISSBStandardsistrueregardlessofthematerialityprincipleapplied.AlreadyreflectedinthefinancialstatementsOrganisationsthatoperateinmultiplejurisdictionsandusemorethanonereportingframeworkorSource:AdaptedfromCristofaroandGulluscio2023.standardfortheirreportingwouldneedtobemorevigilant.Theyneedtobealertto,andmake15IFRSS1,paragraphB18.judgementsabout,thenewinformationanddevelopmentsintheenvironmentandsocietythatcanbepotentialtriggers.Someinformationmaybecomelessmaterialovertime,thoughthismaybealesserconcern.Figure3.3andtheaccompanyingexampleillustratehowthematerialityofinformationaboutanSRROcanbedynamic.Ageopoliticalevent(orotherSRRO)disruptstheorganisation’ssupply-chain,requiringachangeinrawmaterialsourcingorproductionprocessesthatimpairshowemployeesdischargetheirrole.Judgementwillbeneededinassessingwhethertheimpactonemployeesisrelevantforimpactmaterialityreporting,andpossiblyalsounderISSBStandards.Afreakweatherevent(orotherSRRO)resultsindamagetotheorganisation’slocalinfrastructure,haltingproductionandinturn,slowingsalesofthesemanufacturedgoods.SuchaneventmaywellbematerialundertheISSBStandardsandtheapplicableaccountingstandards(egtheIFRSAccountingStandards),andjudgementsmustbemadeabouttheinformationthatwillbematerialtoinvestors.41SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION3.DETERMININGTHEMATERIALSUSTAINABILITY-RELATEDINFORMATIONTOBEREPORTED3.3ReassessmaterialityjudgementsMaterialinformationaboutanorganisation’sSRROsmaychangeovertime.Informationthatwasmaterialinthepreviousperiodmaynolongerbematerialnow,ifcircumstanceshavechanged.Conversely,informationthatwasnotmaterialinthepreviousperiodmaynowbecomematerial.Asmentionedearlier,thiscouldhappenrapidly(seeBox3.8andFigure3.3).Anew(orpreviouslyunidentified)SRROmayevenarise(seeBox3.4).TheISSBStandardsrequirematerialityjudgementstobereassessedateachreportingdate,takingintoaccountchanged(ornew)circumstancesandassumptions16.16IFRSS1,paragraphB28.42SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION4.DETERMININGTHEDATAREQUIREMENTS4.Determiningthedatarequirements43SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION4.DETERMININGTHEDATAREQUIREMENTSFigure4.1:Thesustainabilityreportingcycle:determiningthedatarequirementsReportingAllocatingEstablishingDeterminingtheontheresponsibilitythereportingdatarequirementsforsustainabilitycollectedlandscapeDeterminethereportingboundaryandmaterialdatareportingDetermininginformationinthevaluechainthematerialCollectingVeriﬁcationsustainability-SetthescopeandparametersofdatacollectionthedataEnablers:relatedDeterminethedatarequirementsforeachinformationplan,tobesustainability-relatedriskandopportunitytobetechnology,reportedreportedandpeopleImprovement44DeterminingthedatarequirementsSUSTAINABILITYREPORTING–THEGUIDETOPREPARATION4.DETERMININGTHEDATAREQUIREMENTSDataisthemeansbywhichanorganisationcananalysechain.UsingdifferentapproacheswillresultindifferentBox4.2:ReportingGHGemissionsinthevalueandinterpretthepresentandlooktowardsthefuture,extentsofvaluechainreportingandthusproducevariablechainusingtechniquessuchaspredictiveanalyticsandscenarioresults(seeBox4.2).analysistodemonstrateimpactovertheshort,mediumInreportinginformationaboutScope3GHGandlongterm(ACCA2022a).HavingauniversaldataBox4.1:Identifyingtheconsolidatedgroupandemissionsinaccordancewithparagraph29(a)(vi)ofmodelisessentialtothis.itsvaluechainforsustainabilityreportingIFRSS2,enableprimaryuserstounderstandthesourceoftheseGHGemissionsbyconsideringall15PartofthedatamodelisinformedbythepriorstagesofSustainability-relatedinformationpreparedincategoriesofScope3GHGemissionsthroughoutthereportingcycle,butthereareadditionalaccordancewiththeISSBStandardsneedstobefortheorganisation’sentirevaluechain(upstreamandconsiderationsthatrelateto:thesamereportingorganisationastherelateddownstream)anddisclosureofthecategoriesthatfinancialstatements17.IftheorganisationpreparesitsareincludedwithinitsmeasureofScope3GHGdeterminingthereportingboundaryandvaluechainconsolidatedfinancialstatementstoprovideemissions22.The15categoriesofScope3GHGsettingthescopeandparametersofdatacollectioninformationabouttheparentanditssubsidiariesasaemissionsaredescribedintheGreenhouseGasdeterminingthedatarequirements(Figure4.1).singlereportingorganisation,itshoulddothesameProtocolCorporateValueChain(Scope3)forsustainabilityreporting.AccountingandReportingStandard(GreenhouseWatchtheseexplainervideostohelpyouGasProtocol2011).AnorganisationwhoseactivitiesunderstandtherequirementsintheISSBStandardsAnorganisation’ssustainability-relatedinformationincludeassetmanagement,commercialbankingor(ACCAn.d.a).shouldenabletheprimaryusersofitsgeneralinsurancewouldberequiredtodiscloseadditionalpurposefinancialreportstounderstandtheeffectsofinformationabouttheorganisation’sCategory15TherelationshipbetweensustainabilityandtheSRROsonthecashflows,accesstofinanceandGHGemissionsorthoseassociatedwithitsﬁnancialinformationcostofcapitalovertheshort,mediumandlongterminvestments(financedemissions)23.fortheparentanditssubsidiaries18.TheuseofestimatesandestimationIFRSS2alsorequiresScope3GHGemissionstobeuncertaintyTheorganisationisrequiredtodescribe:measuredinaccordancewiththeGreenhouseGasProtocol:ACorporateAccountingandReportingSupportingguidanceforﬁrst-timeapplicationthecurrentandanticipatedeffectsofSRROsonStandard(GreenhouseGasProtocol2004),totheofIFRSS2theorganisation’sbusinessmodelandvalueextentthattherequirementsdonotconflictwiththechain19,andrequirementsinIFRSS224.UsingtheIFRSS2measurementframeworkOutlineofthereliefsavailablewhereinitsbusinessmodelandvaluechaintheIftheorganisationisrequiredbyajurisdictionalSRROsareconcentrated,suchasgeographicalauthorityoranexchangeonwhichtheorganisation4.1Determinethereportingboundaryandareas,facilitiesandtypesofassets20.islistedtouseadifferentmethodformeasuringitsmaterialinformationinthevaluechainGHGemissions,itispermittedtousethismethodforAnorganisation’sdependenciesonvariouscapitals(orWhendisclosingScope1andScope2GHGaslongasthejurisdictionalorexchangerequirementresourcesandrelationships)throughoutitsvaluechainandemissions,theorganisationdisaggregatesemissionsappliestotheorganisation25.itsimpactsonthosecapitalswillprobablygiverisetobetweentheconsolidatedaccountinggroupandsustainability-relatedrisksandopportunities(SRROs)forotherinvestees,suchasassociates,jointventures17IFRSS1,paragraph20.theorganisation.andunconsolidatedsubsidiaries.2118IFRSS1,paragraphB38.19IFRSS1,paragraph32(a)andIFRS2,paragraph13(a).AnorganisationshoulddetermineitsreportingboundaryWatchtheseexplainervideostohelpyou20IFRSS1,paragraph32(a)andIFRS2,paragraph13(b).inaccordancewiththeapplicablesustainabilityreportingunderstandtherequirementsintheISSBStandards21ForanorganisationapplyingtheIFRSAccountingStandards,thestandards.Specificdisclosuresmayberequiredthat(ACCAn.d.a).dependondatafrominvesteesandfromstakeholdersinconsolidatedaccountinggroupcomprisestheparentandconsolidateditsvaluechain(seeBox4.1).Determiningthevaluechainandconsolidatedsubsidiaries(seeIFRSS2,paragraph29(a)(iv)).groupperspective22IFRSS2,paragraph29(a)(vi)(1)andparagraphB32.Careisneededtoapplytherightcriteriaindetermining23IFRSS2,paragraph29(a)(vi)(2).thereportingboundarythroughoutanorganisation’svalueDeterminingScope3disclosuresacrossthe24IFRSS2,paragraph29(a)(ii)andparagraphB23.valuechain25IFRSS2,paragraph29(a)(ii)andparagraphB24.45SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION4.DETERMININGTHEDATAREQUIREMENTS4.2Setthescopeandparametersofdatacollection4.2.1Understandstakeholders’informationneedsItisimportanttounderstandwhythedataidentifiedforcollectionisnecessary,andhowitinteractswithandfitsintotheorganisation’sbusinessmodelandoverallsustainabilitystrategy.Foramoreholisticunderstandingofwhichdatawillbeabletomeetstakeholders’informationneeds,andtoinformtheorganisation’sdecisionmakingrelatingtodatacollectionmethodology(seesection5.2),anorganisationmayengagewiththefollowingpartners:ﬁnancialcapitalprovidersandﬁnancialinstitutions,tounderstandwhatdatatheywillrequireandhowtheyintendtoharvestthedatadirectlyfromtheorganisationtechnologyvendors,tounderstandwhatdatatheycollectfromtheorganisation,itsvaluechainandtheirothercustomers;technologyvendorsmaybeabletoshareinsightsontheorganisation’sdatacollectionordatavalidation/verificationlocalchambersofcommerceorindustrynetworks,toconsiderhowtheycansupportdatacollection,byworkingcollectively.4.2.2AligndatacollectiontoreportingneedsAsmuchaspossible,datacollectedshouldaligntoreportingneedsforinternalandexternalpurposes,includingforstakeholder-managementpurposes.Providingstakeholderswithinformationbasedonacommonsetofdataestablishesthefoundationforacommonunderstanding,whichiskeytodevelopingandmaintaininganeffectiverelationshipbetweenanorganisationanditsstakeholders.Beingabletolookthroughthesamelensreducesmisunderstandingsandimprovesdecisionmaking.Forthis,thedatamustberelevantandalignedwiththeorganisation’sbusinessmodel,purposeanddirectionsoastobedecision-useful.46SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION4.DETERMININGTHEDATAREQUIREMENTS4.2.3ConsiderdatawhilesettingmeasurablemetricsBox4.3:IdentifyingmetricsformeasuringprogresstowardstargetsandtargetsThevalueandusefulnessofdataisunlockedthroughInmeasuringprogresstowardsanytargetsthattheAnorganisationisrequiredtouseallreasonableandcomparisonofanorganisation’smetricswithinternalorganisationhasset,andanytargetsitisrequiredtosupportableinformationavailabletoitatthereportingtargets,industrybenchmarksandotherorganisationalmeetbylaworregulation,reliablemetricsanddatewithoutunduecostoreffortwhenselectingthemetrics.Wherepossible,thesustainability-relateddatataxonomyshouldbeusedtoidentifyanddescribethemeasurementapproach,inputsandassumptionsusedinshouldhavequalitiesconsistentwiththefinancialdata.reportingdataconsistently.ReferringtotheapplicablemeasuringScope3GHGemissions.However,IFRSS2Box4.3givesanexampleofhowtheISSBStandardscanreportingframeworksorstandards,inthefirstinstance,doesnotspecifytheinputsthatanorganisationusesinbeappliedinidentifyingmetricsformeasuringanwillidentifythemetrics,andassociatedtaxonomythatmeasuringitsScope3GHGemissions,butthestandardorganisation’sprogresstowardsitstargets.specificallyapplytoagivenSRRO.requirestheorganisationtoprioritiseinputsandassumptionsusingthesecharacteristics(whicharelistedTheavailabilityofdataandtheorganisation’sabilitytoIfanorganisationappliestheISSBStandards,itappliesinnoparticularorder)26:collectthosedataarealsocriticaltoitsabilitytoreporttheIFRSSustainabilityDisclosureStandardthatprogressagainstthosetargets.ThoughsettingtargetsisspecificallyappliestothatSRRO.IfanIFRSSustainabilitydatabasedondirectmeasurement(seeIFRSS2,notatypicalcorporatereportingactivity,organisationsDisclosureStandardthatspecificallyappliestoanSRROparagraphsB43–B45)shouldthinkholisticallyabouthowitssustainabilityisabsent,guidanceissuppliedbyparagraphs57–59ofreportingprocessmayinteractwithitsstrategytomanageIFRSS1foridentifyinginformation(includingmetrics)datafromspecificactivitieswithintheorganisation’sSRROs.Box4.4highlightsexamplesofsuchconsiderationsthatis:valuechain(seeIFRSS2,paragraphsB46–B49)whensettingsustainability-relatedtargetstomanageSRROs.relevanttothedecision-makingofprimaryusersoftimelydatathatfaithfullyrepresentsthejurisdictiongeneralpurposefinancialreports,andof,andthetechnologyusedfor,thevaluechainactivityanditsGHGemissions(seeIFRSS2,faithfullyrepresentsthatSRRO.paragraphsB50–B52),andGiventhebreadthofsustainabilitytopics,andatathathasbeenverified(seeIFRSS2,paragraphsorganisationmayusearangeofinputsinreportingB53–B54).thesemetrics,whichcanincludedirectmeasurement,reasonableestimates,andcredibleandverifiableproxy26IFRSS2,paragraphsB39-B40data.47SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION4.DETERMININGTHEDATAREQUIREMENTSBox4.4:Settingsustainability-relatedtargetsBox4.5:ExampleofdeterminingdatarequirementsforSRROs‘Sustainability-relatedtargetstendtobebasedonApplyingIFRSS1,amanufacturerofhouseholdandpersonalproductsmightidentifyaccesstoanduseofcleanwaterlong-termaspirations,butcareisneededtobalanceasanSRROthatcouldreasonablybeexpectedtoaffectitsprospects,asitsbusinessmodeldependsheavilyonwaterinvestors’expectationsagainsttheorganisation’sasanaturalresource.abilitytomeetthetargetssetandreportingonitsprogress.InvestorsoftenassessorganisationsNext,applyingIFRSS2,theorganisationcouldconsidertheindustry-basedguidanceforthehouseholdandpersonalannually,andtheinvestmentcommunityholdstheseproductsindustry,andmightconcludethatwatermanagementshouldbeoneofitsdisclosuretopics.organisationsaccountablefordisclosuresmade.Anexampleofrelevantmetrics,andthereforethedatarequirements,thatcouldinformthedisclosuresonthisSRRO‘Anorganisation,especiallyonejustcommencingthatcouldreasonablybeexpectedtoaffecttheorganisation’sprospectsmightincludethoseshowninTable4.1.sustainabilityreporting,shouldstartbyaimingforachievabletargetsandmaintainingtheintegrityofitsTable4.1:Examplesofpotentialdatarequirementsforspeciﬁcmetricsoverallcorporatereportingprocessasitgrows.TheorganisationshouldregularlymonitoritsprogressMetricPotentialdatarequirementstowardssuchtargets.Thiswillprovidestrongfoundationsonwhichtobuilditssustainability(1)TotalwaterwithdrawnTypesofwatersources,whichmightincludesurfacewater,reportingoverthelongerterm,helpingtomitigate(2)Totalwaterconsumedgroundwater,rainwater,waterobtainedfromwaterutilitiesrisksofgreenwashing.’(anamalgamationoforotherorganisations.commentsfromroundtableparticipants)PercentageofeachinregionswithHighorExtremelyHighWatersourcesinlocationswithHighorExtremelyHigh4.3DeterminethedatarequirementsforeachBaselineWaterStressBaselineWaterStressasclassifiedbytheWorldResourcesSRROtobereportedInstitute’s(WRI)WaterRiskAtlasTool,Aqueduct(WRIn.d.).Workingcloselywithcomponentsacrosstheorganisationenablesidentificationofthesustainability-relatedAmountofwaterwithdrawnfromeachsource,measuredininformationrelevanttoSRROsthatcouldreasonablybethousandcubicmetres(m3).expectedtoaffecttheorganisation’sprospects,includingtherelevantmetrics(seeBox4.5).Theorganisation’sAmountofwaterconsumedintheorganisation’sprocessinidentifyingSRROswasexploredaboveinoperations,measuredinthousandcubicmetres(m3).Section3.Note.TheorganisationmightfurtheranalysetheabovedatabykeyAnorganisationinvolvedinmultipleindustriesmightfindoperationalsegments,geographicallocations,ormanufactureditusefultoidentifyoverlappingmetricsandfurtherisolateproducts.themintoapracticalsetofmetricsforreporting,whichshouldhelptoguidedatacollectionaswell.Source:AdaptedfromIFRSS1,paragraphB3(ISSB2023a)andtheIndustry-basedGuidanceonImplementingClimate-relatedDisclosures:Volume5–Household&PersonalProducts(ISSB2023c)48SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION5.COLLECTINGTHEDATA5.Collectingthedata49SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION5.COLLECTINGTHEDATAFigure5.1:Thesustainabilityreportingcycle:collectingthedataReportingAllocatingEstablishingCollectingthedataontheresponsibilitythereportingforsustainabilitySelectappropriatesourcesofdatacollectedlandscapeEstablishthedatacollectionmethodologydatareportingDeterminingConsidertheuseofexternalsupportthematerialCollectingVeriﬁcationsustainability-thedataEnablers:relatedinformationplan,tobetechnology,reportedandpeopleImprovementDeterminingthedatarequirements50SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION5.COLLECTINGTHEDATADatawillinvariablycomethroughmultiplesources,withTheISSBintroducedtheconceptof‘allreasonableandtowardsadoptingthebettermethodology.Seefurthersomeobtainedthroughlessmatureprocessesandsupportableinformationthatisavailabletotheentityatdetailsinsection6.3foranoutlineofhowadisclosurecansystems.Henceweneedtounderstandandconsiderhowthereportingdatewithoutunduecostoreffort’toeaseexplainwhathaschangedasaresultoftheimprovement.amalgamatingdifferenttypesofdata,withdifferinglevelstheburdenofdisclosureandassistorganisationsinofverifiability,willfitintoanorganisation’soveralldataapplyingtheISSBStandards27.TheISSBStandardsmay5.2.4Maximiseuseofdatacollectedcollectionprocessandframework.specifywhatisreasonableandsupportableinformationinAnorganisationshouldaimtoalignthedatacollectedtospecificcases28.meetbothinternalandexternalreportingneedsattheInthisstage,theguidanceweproviderelatestothesametime.Maximisingtheusefulnessofthedatafollowingactivities:Forexample,whenpreparingdisclosuresaboutthecollectedwhileoptimisingoperationalefficiencythroughanticipatedfinancialeffectsofanSRRO,anorganisationiseconomiesofscalehelpsorganisationstominimisetheirselectingsourcesofdatarequiredtouse29:reportingburden.Closealignmentbetweenanestablishingthedatacollectionmethodologyorganisation’ssustainabilitystrategyandreportingneedsconsideringtheuseofexternalsupport(Figure5.1).allreasonableandsupportableinformationthatisalsohelpssolidifyappreciationoftheformer.availabletotheorganisationatthereportingdate5.1Selectappropriatesourcesofdatawithoutunduecostoreffort;and5.2.5PractiseresponsibleprocurementTosupportvaluechainreporting,anorganisationcould5.1.1Identifyandunderstandexistingdatainuseanapproachthatiscommensuratewiththeskills,practise(orenhanceits)responsibleprocurement.Identifyingsustainability-relateddatacurrentlyinusecapabilitiesandresourcesthatareavailabletotheImplementingasupplychaincodeofconductmightwithintheorganisation,itsavailabilityandhowitisbeingentityforpreparingthosedisclosures.furtherinstilfinancialandsocialtransparencyalongthecollectedislikelytobeanorganisation-wideexercise.supplychain,therebycreatingaccountabilityandfullCollaborationandengagementacrosstheorganisation’s5.2Establishthedatacollectionmethodologydisclosureforissuessuchashumanrights,healthandend-to-endproductdeliverycyclewillbekey.Itissafety,andenvironmentalimpacts.Forexample,animportantthattheorganisationbringsitspeoplealongon5.2.1Consideravailabletechnologyoptionsorganisationcanenhanceitsquestionnairesforsuppliersitssustainabilityreportingjourney.WhentheyunderstandIfthenecessarydataisnotreadilyavailableinthedesired(whichformpartoftheirresponsibleprocurementprocess)thepurposeofthedatabeingcollected,theorganisationform,mechanismsshouldbesetuptocollect,processtoprobetopicssuchasthesuppliers’codesofconduct,standstobenefitfromhavingbetterinsightsintothatand/ormonitorit,egthroughinternalsurveys.Algorithm-and/orinformationabouttheirapproachestochildlabour,data.drivendatacollectionmayresultinamoreefficientdataGHGemissions,etc.Thismechanismcanthenbeusedtocollectionprocess,especiallywhenvaluechainreportingismonitorsuppliers’practicesagainsttheorganisation’s5.1.2Identifyandconsideravailablesourcesofdatainvolved.Weexploreusingtechnologytofacilitatesupplychaincodeofconduct.WeexploreotherkeyareasAnorganisationmightsourceitsdatainternallyorsustainabilityreportinginsection7.2.forsupplychaincollaborationinourreportonSupplyexternally.ToidentifythemostappropriatesourceofdataChains:Afinanceprofessional’sperspective(ACCAfortheorganisation,itsavailabilityandeaseofaccess,5.2.2Alignfrequencyofdatacollectionwithreporting2022a).accuracyandverifiabilityshouldbeconsidered.DatatimelinesverifiabilitythroughthepresenceofanaudittrailiscriticalAligningthefrequencyatwhichthedataiscollectedand27BasisforConclusionsforIFRSS1,paragraphBC9.ininspiringstakeholders’trustinthereportedinformation.reportedrequirestakingintoconsiderationmandatory28IFRSS1,paragraphB8.Thisisparticularlyimportantwherethereisagreaterlevelreportingtimelines.Forexample,theISSBStandards29IFRSS1,paragraph37.ofmeasurementuncertainty,suchasverifiabilityofrequiresustainability-relatedinformationtobeissuedat30IFRSS1,paragraph64.assumptionsinvolvedinmakingestimatesand/orsourcesthesametimeastherelatedfinancialstatements30.ofproxydata.Therefore,datamustbecollectedonatimelybasisto51enableanorganisationtoissueitssustainability-related5.1.3Ethicallyconsidertheproportionalityofcostinformationforthesamereportingperiodandatthesameagainstbeneﬁttimeastheorganisation’scorrespondingfinancialEthicsareinvolvedwhenassessingthecostandeffortofinformation.obtainingthenecessarydatatosupportsustainabilityreporting,andwhethertheyareproportionatetothe5.2.3Useconsistentmethodologybenefitsofprovidingthatinformation.Forastart,it’sbestSustainabilityreportingdatashouldbecollectedattoprioritisereportingthatusesavailableandaccessibleconsistentintervalsusingaconsistentmethodology.Ifandata.organisation’sdatacollectionmethodologycanbeimprovedtocollectbetter-qualitydata,itshouldmoveSUSTAINABILITYREPORTING–THEGUIDETOPREPARATION5.COLLECTINGTHEDATA5.2.6Keepthedata-collectionprocesssimpleBox5.1:Considerationsforinternalcontrolsoversustainability-relateddataOrganisationsshouldstrivetokeepthedata-collectionprocessassimpleaspossible(egthroughtheuseofThedatausedinsustainabilityreportingisoftendifferentTheopportunitytousecomputingpowertoconstantlytechnology).Organisationsmightalsofindithelpfultofromthatusedinfinancialstatements,tendingtobereviewthetotalityofapopulation,oftenreferredtoasdemonstratetostakeholdersinthevaluechainhowmoreunstructuredandqualitative,andisestimatedusing‘continuousmonitoring’,mayofferadvantagesininternalreportingonsuchdatacanbebeneficialtothem(seeBoxmultiplesources.Theabilitytoreviewlargevolumesofcontrolmonitoring.DatainspectiontechniquessuchasAinsectionsustainabilityreportingunderpinsbetterdatainrealtimecanbeanecessityformanyusingembeddedcodetoidentifypotentialpatternsinbusiness).Inpractice,theremaybeinstanceswheredataorganisationsbutischallengingwhenthevolumesoftransactionsinrealtimeoffersanopportunitynotonlytocannotbecollecteddirectlyfromthevaluechain,inwhichdataincreaseandthepotentialriskprofilebroadens.improvetheperformanceofacontrolbutalsotoincreasecase,theorganisationwillneedtoconsiderwhetherDatagovernance,quality,modellingandanalyticsarethevalueaddedtoorganisations.sourcingforproxydatawillmeetitsneeds.ACCA’sthereforecritical.ProfessionalAccountantsChangingBusinessforthePlanetItisimportanttostrikeabalancebetweenthecontinuous–AsimpleguidetonaturalcapitalmanagementforOneofthechallengesfacedwithsuchvolumesofdataismonitoringofdataandtheidentificationoftransactionsperformancemanagers(ACCA2021a)hassomeexamplesthatwithtraditionalsamplingtechniquesitishardtothatmightrequirefurtherinvestigationorsubsequentthatmightbeuseful.ensurethatappropriateconclusionsaredrawnfromauditwork,basedontheassessmentofstrategicrisks.testing.5.2.7EmbedveriﬁcationwithinprocessesandsystemsTohelpyou,Chapter3ofthereport,InternalControlandAnorganisationneedstoplanforverificationwithinitsOverall,80%ofrespondentstoarecentsurveyeithertheTransformationofEntities(ACCAetal.2022),containsprocessesandsystemstoensurethatitsoutputsareagreedorstronglyagreedthatinternalcontrolsshouldadetaileddiscussiononalistofkeyactionstoimprovecredibleandcanbereliedupon.Controlsforsustainabilitybeextendedtosustainability-relatedinformation,andanorganisation’sinternalcontrols.reportingshouldapplythesamerigourascontrolsforESG-relatedreporting(ACCAetal.2022).financialreporting.TheeffectivenessoftheseinternalInaddition,thereportAchievingEffectiveInternalcontrolsoversustainabilityreportingneedstobeForinternalcontrolstobeeffective,anappropriateControloverSustainabilityReporting(ICSR),producedbymonitoredperiodicallyandideally,shouldcoincidewithcombinationofpeople,process,technologyanddataistheCommitteeofSponsoringOrganizationsofthethemonitoringofinternalcontrolsoverfinancialreportingrequired.Ifanyoneoftheseelementsisnoteffective,theTreadwayCommission(COSO)providesguidanceon(seeBox5.1).effectivenessoftheinternalcontrolframeworkisestablishingandmaintaininganeffectivesystemofdiminished.internalcontroloversustainability-relatedinformation(COSO2023).52SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION5.COLLECTINGTHEDATA5.3ConsidertheuseofexternalsupportIndeterminingwhetheraparticularthird-partysystemisBox5.2:Doesyourorganisationoutsourcedatareliableandcanbetrusted,professionalscepticismiscollectionandprocessingforsustainabilityCorporatereporting(whichincludessustainabilityneededwhenaskingthefollowingimportantquestions.reporting?reporting)isafast-evolvingactivitywhichcanbechallengingfororganisationstomonitorandnavigate,Howfrequentlyisthedataupdated?YesparticularlyforthoseinvolvedacrossmultiplejurisdictionsIsthedatarelevantfromalocalperspective?ANo,butweplantooutsourceandindustries.No,wedotheseinternallythird-partydatasystemthatprovidesaglobalInourpulsesurvey(seeBox5.2),overhalftherespondentsperspectivemightnotprovidethenecessarylevelof36%statedthattheirorganisationscollectandprocessdetailforusefuldecisionmakinginalocalsituation.12%sustainabilityreportingdatainternally.Despitethis,anWhatassumptionswereused,andisdataverificationorganisationmightstillfinditessentialtorelyononeorembeddedinthesystem?Verificationisimportanttomoretypesofexternalsupport,suchas:supportthesourcesandassumptionsinvolvedinmakingestimateswherethereisagreaterlevelofexternalconsultantsorserviceproviders,tohelpmeasurementuncertainty.identifyimprovementstotheorganisation’sdataIsthedataconsistentacrossdifferentsuppliersofthecollectionprocess,providenecessaryskillssamedata?developmentandprobablyprovidetheaddedbenefitofguidingtheorganisationtoavailablelocalincentives,52%ifanySource:ACCA2023b;923respondents.theuseofthird-partyvendors(outsourcing)whocancollect,processandreportdataaccessingexternalsourcesofdatathroughthird-partysystems,suchasanopenapplicationprogramminginterface(API),toinformanorganisation’ssustainabilityreporting.DatafromsourcessuchastheIPCCandInternationalEnergyAgency(IEA)canassistinsupportingassumptionsandparametersforscenarioanalysiswhenassessingclimate-relatedrisks(physicalandtransitionrisks).53SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION6.REPORTINGONTHECOLLECTEDDATA6.Reportingonthecollecteddata54SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION6.REPORTINGONTHECOLLECTEDDATAFigure6.1:Thesustainabilityreportingcycle:reportingonthecollecteddataReportingAllocatingEstablishingReportingontheontheresponsibilitythereportingcollecteddataforsustainabilitycollectedlandscapeSelectthemeansofcommunicationdatareportingDeterminingthematerialEnsureconnectivityofinformationCollectingVeriﬁcationsustainability-thedataEnablers:relatedApplythequalitativecharacteristicsofgoodinformationreportingplan,tobetechnology,reportedEnhancethereportingpackageandpeopleImprovementDeterminingthedatarequirements55SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION6.REPORTINGONTHECOLLECTEDDATADatacollectedwillneedtobeanalysedinaccordancewithBox6.1:Doesyourorganisationcurrentlyreporttherelevantreportingrequirements,whichmayincludesustainability-relatedinformation?Whereisscenarioanalysisinaccordancewiththeorganisation’sthisdisclosed?businessandriskmanagementapproach(Figure6.1).Inthisstage,theguidanceweproviderelatestotheAnnualreportIntegratedreportfollowingactivities:SustainabilityreportOther(egwebsite)selectingthemeansofcommunication6%38%ensuringconnectivityofinformation22%applyingthequalitativecharacteristicsofgoodreportingenhancingthereportingpackage.6.1SelectthemeansofcommunicationDisclosurestellanorganisation’sstory.Withtheimplementationofsustainabilityreporting,thisextendstotellinganorganisation’sstoryaboutitssustainabilityreportingjourney.Reportingframeworksgenerallydonotspecifyalocation34%forthereportingofsustainability-relatedinformation.EachorganisationshoulddeterminethemostsuitablemodeofSource:ACCA2023c;989respondents.communication,giventhetypesofsustainability-relatedinformationinvolvedaswellastheaudienceitintendstoreach.Thiswillalsobesubjecttoregulatoryorotherrequirementsspecifictothejurisdictionsinvolved.Asanexample,theISSBStandardssuggestthatsustainability-relatedfinancialdisclosurescouldbeDisclosuresabouttheorganisation’sbusinessmodelandincludedinanorganisation’smanagementcommentaryorpoliciesdevelopedusingintegratedthinkingthatincludeasimilarreport,whenitformspartofthegeneralpurposemediumtolongtermconsiderationswillbelessinclinedfinancialreports.Suchreportscouldalsobeknownastomateriallychangeyearonyear,unlesstheSRROs‘management’sdiscussionandanalysis’,‘operatingandchange.Suchdisclosuresmightbepresentedaspubliclyfinancialreview’,‘integratedreport’or‘strategicreport’.availablestandinginformationin,say,theorganisation’sAnorganisationmayalsoincludesuchdisclosuresbywebsite.cross-referencetoanotherreportthatitpublishes.31Inlinewiththistrainofthought,theannualreportisoftenOther,morespecificorpreciseinformationthatneedstorecognisedasanimportantandtrustedmeansofbeupdatedfromtimetotime,egmetricsrelyingoncommunication.Box6.1indicatesthattheannualreportissystemsandtechnologyforcollection,mightbepresentedcurrentlystillthepreferredmeansofcommunication,withinalocationwhichcanbeaccessedbyinvestorsandotherthesustainabilityreportandintegratedreportalsobeingrelevantstakeholders.Dependingontheorganisation’spopularchoices.Inaddition,websites,socialmediafeeds,andstakeholders’needs,disclosuresonmetricsandnewsletters,employeemeetingsandsupplierbriefingsaretargetsmightevenbedecoupled,suchthattargets(andalsowaysinwhichanorganisationcancommunicatemorecomparisonsagainstthem)mightbeperiodicallyreporteddirectly,inamoretailoredandmoretimelyway,withuponseparately.stakeholdersotherthaninvestors(ACCA2021b).31IFRSS1,paragraphs61,63,andB45–B47.56SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION6.REPORTINGONTHECOLLECTEDDATA6.2EnsureconnectivityofinformationDrawingconnectionsbetweendisclosuresinvolves,butisBox6.2:AnexampleofconnectedinformationACCA’sresearchintoclimate-relateddisclosuresinthenotlimitedto,providingnecessaryexplanationsandconstructionmaterialsandchemicalsindustriesindicatedcross-references,andusingconsistentdata,assumptionsInprovidingconnectedinformationonstrategyandthatdisclosuresareoftenscattered,duplicated,andhaveandunitsofmeasurement.Organisationsshouldclearlyfinancialplanning33anorganisationmightexplaininlittletonocross-referencing(Baboukardosetal.2022).andconciselyexplaintheseconnectionsandavoiditsdisclosures:Theresultisinformationoverloadthathinders,insteadofunnecessaryduplicationwheredisclosuresinvolveenabling,transparencyandcomparability,withreaderscommonitemsofinformation.32(SeeBox6.2.)howitsstrategywillaffectorislikelytoaffectitshavingtospendconsiderabletimeandefforttofindthefinancialstatementsandfinancialplanninginformationthattheyneed.Disclosuresontheorganisation’spastperformance,currentpositionandfutureprospectsshouldalsoclearlyhowitsstrategyrelatestothemetricsusedtoOrganisationsneedtoprovideinformationinacoherentdemonstratehowvaluehasbeencreatedandhowthemeasureprogressagainsttargetsandconsistentmannertoenableprimaryandotherusersorganisationintendstocreatemorevalueinthefuture,tounderstandtheconnectionsbetweenvarioustypesofreflectingtheinteractionofvariousresourcesandcapitals.howitsuseofnaturalresourcesorchangeswithininformationasshowninFigure6.2.Forexample,applyingtheIntegratedReportingitssupplychaincouldamplifyor,incontrast,Framework,disclosuresshouldshowthelinkagesandreduceitsSRROsFigure6.2:Varioustypesofinformationrelationshipsbetweenthesixcapitals:financial,manufactured,social,human,intellectualandnaturalthelinkbetweenitsuseofnaturalresourcesor(ACCA2018b).changeswithinitssupplychaintoinformationaboutcurrentorexpectedfinancialeffectsonitsItemstowhichtheDisclosuresprovidedbyInformationprovidedproductioncosts,itsstrategicresponsetoinformationrelates.theorganisationinitswithinandacrossanmitigatethoserisksanditsrelatedinvestmentingeneralpurposeﬁnancialorganisation’sdifferentnewassetsEgconnectionsbetweenreports.meansofcommunication.varioussustainability-thelinkbetweenitsnarrativeinformationtotherelatedrisksandGeneralpurposefinancialIncluding:relatedmetricsandtargetsandtoinformationinopportunities(SRROs)thatreportsinclude–butaretherelatedfinancialstatements.canreasonablybenotrestrictedto–anInformationavailableexpectedtoaffectanorganisation’sgeneralinternally(egforusebyFurther,applyingtheISSBStandardstogether,iforganisation’sprospects.purposefinancialseniormanagementoversightofSRROsismanagedonanintegratedstatementsandandthosechargedwithbasis,theorganisationshouldavoidduplicationbysustainability-relatedgovernance),andprovidingintegratedriskmanagementdisclosuresfinancialdisclosures.insteadofseparatedisclosuresforeachSRRO.34Informationreportedexternally(egintheSource:AdaptedfromtheISSBStandardsannualreport,integratedreport,website).RequiredbyIFRSS1,paragraph21(ISSB2023a)32IFRSS1,paragraphB42.33IFRSS1,paragraphB43.34IFRSS2,paragraph26.57SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION6.REPORTINGONTHECOLLECTEDDATA6.3ApplythequalitativecharacteristicsofIFRSS1specifiesthatforsustainability-relatedinformationBeyondthis,anorganisationmightalsoprovidegoodreportingtobeuseful,itmustberelevantandfaithfullyrepresentdisclosuresexplainingsubsequentchangesandwhatitpurportstorepresent.Thisusefulnessisenhancedimprovementsmadetoitsdatacollectionmethodology,Sustainability-relatedinformation,whichcanbefinancialiftheinformationiscomparable,verifiable,timelyandtheprocessandthechangestothetypeofdatausedforand/ornon-financial,shouldbesupportedwithunderstandable.Toachievefaithfulrepresentation,currentandpreviousperiods.appropriatenarrative(qualitative)disclosures.Often,disclosuresshouldprovideacomplete,neutralandtellingtheorganisation’sstoryaboutitssustainabilityaccuratedepictionofanorganisation’sSRROs.3635IFRSS1,AppendixD.ambitionsandstrategytoachievethemcanguideits36IFRSS1,paragraphs10-16.sustainability-relatednon-financialdisclosures.Tosupportthecredibilityofsustainability-related37IFRSS1,paragraphs70–71.information,theISSBStandardsprescribedisclosuresofGood-qualityinformationforcorporatereporting(whichinputs,assumptionsandjudgementsusedinpreparingincludessustainabilityreporting)generallydemonstratesthatinformation.WheretherearechangestothisthesequalitativecharacteristicsassetoutinIFRSS135,andinformationinsubsequentyears,theISSBStandardsalsoshowninFigure6.3.prescribethedisclosurerequirementsforcomparativeinformation37.Figure6.3:QualitativecharacteristicsofusefulinformationforcorporatereportingQualitativecharacteristicsFundamentalcharacteristicsEnhancingcharacteristicsRelevanceFaithfulrepresentationComparabilityVerifiabilityMaterialityCompletenessTimelinessUnderstandabilityNeutralityAccuracySource:AdaptedfromIFRSS1,AppendixD(ISSB2023a)andTenetsofgoodcorporatereporting(ACCA2018b).58SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION6.REPORTINGONTHECOLLECTEDDATA6.4EnhancethereportingpackageBox6.3:ThefourpillarsoftheTCFDrecommendationsintegratedintotheISSBStandardsHavingworkedthroughtheearlierstagesoftheTheISSBStandardsintegratetheTCFDrecommendations’fourcorepillars,whichcanalsobeusedtostructureansustainabilityreportingcycle,theorganisationshouldnoworganisation’sdisclosures.However,therequirementsoftheISSBStandardscansometimesgobeyondtheTCFDbereadytoincorporateadditional,relevantdataintoitsrecommendations(IFRSFoundation2023d).reportingpackageandmovetothenextstageofpreparingitsdisclosures.Table6.1:ThefourcorepillarsofTCFD’srecommendationsEveryorganisation,regardlessofsizeandcomplexity,isGovernanceStrategyRiskmanagementMetricsandtargetslikelytohavesomeformofreportingpackagetohelpguideitsinternalreportingprocess.ThisreportingGovernanceTheapproachthatProcessestheTheorganisation’spackagemightrangeincomplexityfromasetofprocesses,controlstheorganisationusesorganisationusestoperformanceinrelationspreadsheetstoautomated,system-generatedreportsandproceduresthetomanageSRROs.identify,assess,toSRROs,includingbasedondatacollatedfrommultiplelocationsandorganisationusestoprioritiseandmonitorprogresstowardsanysources.Toacertainextent,additionalworkmightbemonitorandmanageSeeBox6.4onhowSRROs.targetstheorganisationneededtodesigntheoutputofthisreportingpackageinSRROs.anorganisationcanhassetorisrequiredtoaformsuitableforstakeholders’consumption.communicateitsDisclosuresshouldmeetbylaworSeealsoSection1,SRROstorelevantenableunderstandingregulation.AsetofworksheetsisincludedintheAppendicestoguideAllocatingstakeholders.ofhowtheseprocessespreparationofsustainability-relatedinformationinresponsibilityforareintegratedinto,andDisclosuresforeachaccordancewiththeISSBStandards,whichintegratethesustainabilityinform,theSRROmustincludeTCFDrecommendations’fourcorepillars(seeBox6.3).reporting,whichorganisation’soverallmetricsrequiredbytheexplorestheriskmanagementISSBStandards.IntheAppendixAprovidesasampleworksheetforpreparingResponsibilityprocess,aswellasabsenceofanISSBinformationfordisclosureinaccordancewithIFRSS1,AssignmentMatrix,aenableassessmentofStandardthattocommunicatetheeffectsofanorganisation’sSRROspossiblesourceoftheorganisation’sspecificallyappliesto(otherthanclimate-related)overtheshort,mediumandinformationforoverallriskprofileandtheSRROs,paragraphslongterm.disclosures.Otheroverallrisk54–58andAppendixCsourcestoconsidermanagementprocess.ofIFRSS1setouttheAppendixBprovidesasampleworksheetforpreparingincludetheSourcesofGuidancetoinformationfordisclosureinaccordancewithIFRSS2,organisation’sinternalSeealsoSection3,guideidentificationoftocommunicatetheeffectsofanorganisation’spoliciesandtermsofDeterminingtheapplicablemetrics.climate-relatedrisksandopportunitiesovertheshort,reference.materialsustainability-mediumandlongterm.relatedinformationtoSeealsoSection4,bereported.Determiningthedatarequirements.Source:AdaptedfromtheISSBStandards59SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION6.REPORTINGONTHECOLLECTEDDATABox6.4:CommunicatingtorelevantstakeholderstheSRROsthatcouldreasonablybeexpectedtoaffectanorganisation’sprospectsThelistofprioritisedSRROsthatcouldreasonablybeexpectedtoaffectanorganisation’sprospectsmaybeexpandedintoaschedule,toincluderelevantinformationsuchastimescaleandpeople(ororganisationalcomponent)responsibleformanagingeachSRRO.Thisscheduleshouldbemadeaccessibletoseniormanagementandemployeesastheirrolesrequire.ThescheduleofSRROsshouldassistin:describingtheorganisation’senvironment-,social-,andgovernance-relatedtargetstohelpinternalandexternalstakeholdersunderstandandconsiderwhatisimportantfortheorganisation,andsettingitssustainabilitystrategy.Itisimportanttoconveyaclearstrategytobothinternalandexternalstakeholdersonhowtheorganisationwillachieveitssustainability-relatedtargets.60SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING7.Implementingreporting61SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTINGFigure7.1:Thesustainabilityreportingcycle:implementingreportingReportingAllocatingEstablishingImplementingreporting:ontheresponsibilitythereportingplan,technologyandforsustainabilitypeopleasenablerscollectedlandscapedatareportingDeterminingCreateaformalimplementationplanthematerialCollectingVeriﬁcationsustainability-UsetechnologyasanenablerthedataEnablers:relatedSetthestrategyinformationEstablishgovernanceplan,tobeAssessthecredibilitytechnology,reportedandpeopleWorkwithpeopleasenablersImprovementMakethecaseCreateawarenessDeterminingReviewtheorganisationdesignthedataEngageandmanageprovidersandusersofsustainability-relatedinformationrequirementsManagetalent62SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTINGSuccessfulimplementationofanyprocessbut,incorporatereportingdatatobuilddisciplinefordataparticular,onethatbringschangesasbigassustainabilitycollectionamongthereportingteams.reporting,willdependuponthefollowingkeyelements:Establishingareportinghubcomprisinganinterdisciplinaryteamofindividualschargedwithcreatingaformalimplementationplandevelopingandmaintainingtheorganisation’soverallusingtechnologyasanenablercorporatereportingprocess.Thishubshouldhavetheworkingwithpeopleasenablers(Figure7.1).authorityandcapabilitiestosetorganisation-wideminimumstandardsoncontrols,datacollectionandTheseareallexploredinthisstage.evidencerequirements,includingthedesignatedlevels.Forinstance,whetherdatacollectionhappensatBox7.1:HelpwithunderstandingtheISSBsite,industry,country,orregionallevel.StandardsHoldingawarenesssessionsforinternalandexternalstakeholders,andtrainingforthoseexpectedtouseWatchthisexplainervideotohelpyouunderstandthenewsystems(Box7.2).therequirementsintheISSBStandards:Box7.2:FinancialandsustainabilityreportingConsiderationsofproportionalityandshouldbetakenequallyseriouslyscalabilityinsustainabilityreporting(ACCAn.d.a).‘Thesystemisonlyasgoodasthepersonwhois[in]puttingthedata.So,buildingthathuman7.1Createaformalimplementationplancapabilityiscritical,andthisisaproblemthatweConsideringthebreadthanddepthofchangesthatancontinuetofaceeveryday.It’ssoimportantthatorganisationwillprobablyneedtoimplementtoachieveeveryonetakesnon-financialreportingasseriouslyasitsreportingneedsandgoals,theorganisationmightwishfinancialreporting’(anaccountantinvolvedinthetosupplementitssustainabilityreportingcycle(seesustainabilityreportingprocess).Executivesummary,Thestagestofulfillingthecalltoaction)andRACIchart(seesection1.1,Box1.2)withaformalimplementationplanspecifyingtimescalestoguideitsexecution.Thisplan,supportedbytechnologyandpeopleasenablers,mightincludedetailsonthefollowingaspects.Systemsdevelopment–settingappropriatetimescalesforbuildingthenecessarysystemsandprocessestosupportthem.Enhancingstandardoperatingpoliciesandprocedurestoincorporatetimescalesforsustainability-relateddatacollectionandverification.Thiscanincludespecifyingwhendataisupdatedcentrally,atadesignatedtime,sothatreportingteamswillknowwhentowatchforupdatedornewrequirements.Theorganisationmightalsoconsideraligningthetimingforupdatesoffinancial,sustainability-relatedandother63SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:TECHNOLOGYASANENABLER7.2Technologyasanenabler7.ImplementingTheavailabletechnologyoptionswilldependonthesizereporting:andcomplexityoftheorganisationanditsactivities,aswillTechnologyastheextenttowhichtheycanaidtheorganisationinitsanenablerdatacollectioneffortstofacilitatesustainabilityreporting.Anorganisationmaystartbycapturingdataforsustainabilityreportingwiththetechnologythatisreadilyavailable,suchasspreadsheet-basedtemplateshostedonweb-basedcollaborativeplatforms(egMicrosoftExcelspreadsheetshostedonSharePoint,orMicrosoftForms38),andsubsequentlymovetoapplicationswithenhanceddataanalyticscapabilitiestosupporthomogeneity.Onthescalabilityandflexibilityofatechnology,considerwhetherthesystemanditsvendor(s)willgrowintandemwiththeorganisation.38Examplesliketheseareusedforillustrativepurposesonlyanddonotrepresentendorsementoradvocacyforanyproductorvendor.Thesameistrueforotherexamplespresentedwithinthisguide.64SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:TECHNOLOGYASANENABLER7.2.1SetaclearstrategyforusingtechnologyBeforedecidingonatechnology,itisimportanttoBox7.3:Poordataqualitynegatesthebeneﬁtstofacilitatesustainabilityreportingunderstandthereportingframeworkorstandardsappliedofusingtechnologyandthedatathatwilleventuallybereportedon.TheThereshouldbeaclearpurposeforusingtechnology,technologyshouldhavetheflexibilitytoadapttochanges’…rubbishinrubbishout:there'snopointthinkingtakingintoaccountthefollowingpointswhenselectingasthereportingframeworksorstandardsevolve.Havingatechnologyisgoingtobethepanaceaandsolveallthetechnologiesforanorganisation’sreportingplatform:clearviewofthefollowingcriteriawillhelpinselectingtheofyourproblemsifyoudon'tknowwhereyourdatarighttechnology(Box7.3):iscomingfrom,andyouhaven'tgotdataattherightthereportingobjectivesandtheorganisation’sneedsgranularitytoreporton’(anenvironmental,socialthatthetechnologyisintendedtoaddressthetypesofdatathatneedtobecollected,egandcorporategovernance(ESG)reportingandstructuredorunstructureddataassuranceexpert).thedatathatwillbecollected,processedandreportedon(seeSection4,Determiningthedatarequirements)therightlevelofgranularitytomeetbothinternalandexternalreportingneedsthescalabilityandflexibilityofthetechnologytomeettheorganisation’sfutureneedswherethedataissourcedwhowillcollectandinputthedatafromwithintheintegrationwithexistingsystems(eg,financialreporting,payroll,enterpriseresourceplanning(ERP))organisation,acrosstheconsolidatedgroupandalongorothertechnologywithwhichitneedstoworkinthevaluechainunison,akintotheconceptofdigitalcore(ACCAetal.theinternalcontrolsoverthedata2021).howthedatacanbeassuredthegapsintheorganisation’sdatacollectionandprocessinginfrastructure.65SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:TECHNOLOGYASANENABLER7.2.2EnsuretherightlevelofgovernanceisDatareportersintheorganisationandinitsvaluechainThetechnologyshouldbeequippedwithbuiltintothetechnologyshouldbeabletoinputdatathemselves,andcybersecurityfeatures.Organisationsshouldchecksubsequentlyallowedtochecktheirowndata.ForthattheirtechnologyproviderwillprovideaneffectiveTherightlevelofgovernanceintheuseoftechnologyisexample,theorganisationmayrequeststakeholdersinlevelofsecurity.Thesameshouldbedoneforinternalimportantforcollectinggood-qualitydataandsupportingitsvaluechaintoinputtheirowndata.Asupplier’sdataandexternalstakeholdersaccessingtheorganisation’sitsverification.onScope1andScope2GHGemissions,forinstance,network,eithertoprovideorobtaindata.Withmorewillcontributetowardsalargeproportionofthedevicesaccessingtheorganisation’snetworks,oneDatashouldbestoredcentrally,thusgivingorganisation’sScope3GHGemissions.weaklinkisallthatittakestocreateapotentialsecurityeveryoneonesourceofdata.Ifcentralisedstorageisbreach.Itisimportantthatorganisationshavearobustnotpossible,storageshouldbeinasfewlocationsasItshouldbepossibletoperformautomatedchecks.approachtocybergovernanceaspartoftheiroverallpossible.WheretheorganisationfindsitunavoidableThetechnologyshouldhaveanautomatedcheckingriskmanagementprocess,toprotectagainstsecuritytousemultiplesystems,thesesystemsshouldbelinkedmechanismattheindividualandconsolidatedlevel,egbreachesorcyberattacks(ACCAetal.2019).insuchawayastohelpeliminateduplicationandtocheckingconsistencyofdatatypesbeingreportedbyfacilitatedataretrieval.ThiswillimproveoperationaldifferentreporterswithsimilarbusinessmodelsThechosensystemshouldsupportthedevelopmentefficiency,andfacilitatedecision-makinginaccordancethroughoutthevaluechain,consistencyofdatatypesofdataandtechnology-relatedcapabilitiesamongwiththeorganisation’spoliciesandmonitoringofitsacrossGHGemissions,accuracy,validityanditsusers,forexampleviaahelpdeskordigitalperformanceagainstitstargets.Anaddedbenefitiscompletenessofdata.Thiswouldfacilitatecontinuousassistance.Wetouchoncapabilitiesandverificationinthecreationofalargedatapoolwhichcanserveasmonitoringandcontinuousauditingtechniques.sections5.2.7,7.3.5and8.2.inputsintopredictiveandprescriptiveanalyticaltechniquesforscenarioanalysis.Thetechnologyshouldhavedataanalyticsanddata66visualisationcapabilities.ItshouldhaveaccesstoThetechnologyshouldlinkto,andintegratewith,businessintelligencecapabilitiestoanalysedatafortheorganisation’sinternalsustainability-relatedinternalandexternalreportingandaidinconductingpoliciesandtargets.Suchlinkingandintegrationwillscenarioanalysis.Visualisedinformationintheformofaenabletheorganisationtomaintainitsdirectiondashboardorinfographicswouldbeusefulfor:towards,andfocuson,itssustainability-relatedgoalsmonitoringperformanceagainsttargets,orwhilemeetingitssustainabilityreportingneeds.Thisassessingoptionsbeforemakingdecisions,andcanalsohelptheorganisationembedsustainability-externalpresentationstoinformstakeholders.relatedandethicalpracticesintoitsday-to-dayactivitiesandcultureandpotentiallyextendthemtoitsThereshouldbecustomisableaccessrightstodata.valuechain.Accesstodataisessentialtoenablingthesharingofreal-timeinformationtorevealanorganisation’sThetechnologyshouldoffermultipledata-inputperformanceinrelationtoitssustainability-relatedrisksoptions.Thetechnologyforrecordingandcollectingandopportunities(SRROs),whichincreasinglyrequiresdatafromanorganisation’sactivitiesshouldbelinkedoperationalandfinancialinformationtobemanagedintoitsexistingreportingsystems.Datacollectionandanintegratedmanner.Thisallowspeopleinthedatatransfersshouldbeautomatedasmuchasorganisation(astheirrolesrequire)toworkwithdatapossible.Datashouldbetaggedaccordingtotheand,asaresult,makedata-informeddecisions(ACCAorganisation’suseanditsreportingneeds,foreaseof2023a).Customisableaccessrightsallowthereportingsubsequently.Datacouldbestructuredororganisationtodecidewhetherdatashouldbemadeunstructured,andmayinclude:availabletoallemployeesortolimittheaccessofoperationaldata,egnumberofcustomers,staff,specificdatatocertainemployeesowingtothelocation,size/areasensitivenatureofsuchdata,egpersonaldata.ThisisESGdata,egGHGemissions,energyconsumption,particularlyimportantwhencontrollingwhetherthewateruse,waste,morbidityandmortalityrates,dataisdownloadableorcanbeexportedtogenderandethnicitypaygap,andspreadsheetsforreportingexternally.financialdata.SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:TECHNOLOGYASANENABLER7.2.3AssessthecredibilityoftechnologyusedBox7.4:DesignconsiderationsfortechnologyinsustainabilityreportingThesedesignconsiderationswouldhelpanorganisationdeterminethemostimportantfeaturesthatarerelevanttoitsThereareconcernsoverthereliabilityandverifiabilityofneeds.Largeorganisationsmayfindmanyofthesefeaturesrelevant,whileless-well-resourcedorganisationsmaynotdatacollectedinternallyorbyotherpartiesthatisusedinneedallthesefeaturesimmediately.Thislistmaynotincludeallthefeaturesthatcouldberelevanttoanorganisation.sustainability-relateddisclosures.SystemsforcollectingTheyareorganisedintoseveralthemesforconsideration.ESGdataarelessmaturethanERPsystemsusedforfinancialinformation.OrganisationsareencouragedtoThemesforconsiderationThesystemshouldmonitortheevolvinglandscapeasthetechnologyforsustainabilityreportingdevelops.Systemarchitecturestoredatacentrally(ieprovidingonesourceofdata,oroftenreferredtoasandintegrationsinglesourceoftruth)Dataiscollectedbutnotalwaystraceabletoitssource,especiallywhenmanualinterventionsareinvolved.Aslinktoandintegratewithinternalpoliciesandtargetsmentionedinsection5.2.7,thetechnologyshouldincludelinktoorintegratewithexistingsystemstopulldatafromthem(egfinancialverifiableaudittrailsthatwillenableauditstobeperformedonthedatacollected,processed,storedandreporting,payroll,ERP)reportedbythesystem.Thiswouldallowthesystemandbeintuitiveandofferstraightforwarduserinterfacesthedatathatitprocessestobeaccreditedbybescalable–thetechnology(andthevendor)shouldhavetheabilitytogrowasindependentthirdparties,thusimprovingtrustintheinformationreported.theorganisationgrows.Traceabilityofdatacanbeenhancedby:Datagovernanceperformautomatedaggregationofdatafrominternalandexternalsourcesintoandmanagementoneplaceinstallingmonitoringequipment(egsensors)toautomatedatacollection,albeitatadditionalcosts,andAccessperformautomatedcheckingofdataaccuracy,consistencyandcompletenesshaveverifiableaudittrailssuchthatwillenableauditstobeperformedontheusingsoftwaretoautomatecalculationsorconversionofdata.datathatitcollects,processes,storesandreportsprovideproxydatatosupplementdatafromthevaluechainInvestinginnewtechnologyorintegratingitwithexistingbeequippedwithcybersecurityfeaturestoprotectagainstunauthorisedaccesssystemsmayrequiredeepconsiderationofitsdesignandfunctionality.Theseareimportantmatterstobediscussedanddatabreaches.withtechnologyvendorsorserviceprovidersbeforemakinganypurchases(SeeBox7.4).beaccessibletointernalandexternalstakeholders(egsuppliers,customers),allowingthemtoinputdatadirectly,whereapplicablebeaccessibletoallemployees,dependingoncustomisableaccessrights,allowingaccesstotheorganisation’spoliciesanddata.Capabilitiesproduceoutput(egreportingtemplates)thatcanbeusedforinternalandexternalreportingproducevisualisedinformation(egdashboardsorinfographics)formonitoringandpresentationshavesufficientflexibilitytoadapttotheevolvingneedsoftheorganisationandtheapplicablereportingframeworksorstandards.67SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:PEOPLEASENABLERS7.3Peopleasenablers7.ImplementingInthissectiononpeopleasenablersweexplorethekeyreporting:mattersrelatingtopeople,specifically:Peopleasenablersmakingthecaseforinvestinginpeopleestablishingwhoisaccountableandresponsiblefordeliverycreatingawarenessandeducationonsustainabilityreportingandthenecessaryprocessesreviewingtheorganisationdesigntoensurepeoplearebestplacedtofulfiltheirrolesengagingandmanagingexternalstakeholderssothattheyappreciatethesustainability-relatedinformationtheywillreceiveandneedtoprovidemanagingtalenttoensuretheappropriatecapabilities(skills,mindsetsandbehaviours)exist.BeforegettingintothedetailallshouldwatchtheexplainervideotohelpyouunderstandtherequirementsintheISSBStandards:Buildingsustainabilitydisclosurecapabilities(ACCAn.d.a).68SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:PEOPLEASENABLERS7.3.1Makethecaseforinvestinginpeopletheirviewsknownamongregulatoryauthorities,forDevelopingintegrative-thinkingcapabilities:instance,inthereportingonbusinessmodelcollectivelybuildingprocesses,incorporatingIntroducingsustainabilityreporting,eveninordertotransformationplansincomplianceandsupportoftechnologyandpersuadingpeopletoembraceprovidedatatoothersinthevaluechain,willbeamajornationalsustainability-relatedtargets.sustainabilityreportingconstitutewhatACCA’sinsightsundertaking.Formanyorganisations,thiswillnecessitateBuildingtheprocessesandsystemsinthedesign,workhasshownisacomplexmulti-dimensionalmakingthecaseforinvestmentinpeople,beitfortheimplementationandtheiroperation.problem.Tosolvesuchproblems,individualsneedtodevelopmentofnewcapabilities,improvingthewayinEngagementtoaccessandsharedataandinsights:demonstratefiveintegrative-thinkingcapabilitiesthatwhichteamsoperate,orchangingtheorganisationalsustainability-relatedreportingrequiresconsiderablewillrequireinitialandcontinualdevelopmentasstructure.Thiscaseshouldcentreonpeople’sessentialamountsofdataandinsightsfromacrossthesustainabilityissuesandthebusinesslandscapeevolverolesinvariousaspectsoftheorganisation.organisation,valuechainandotherpartiesinthe(seeBox7.5).externalenvironment.Further,theresultingEmbracingaculturethatconsiderssustainabilitysustainabilityreportsandinformationareofinteresttomoregenerallywillcreateacommitmenttowardsawiderrangeofstakeholdersthanperhapsisthecaseembeddingsustainabilityholisticallyacrossthewithfinancialreports,thereforegreaterconsiderationorganisationanddrivinghigh-qualitysustainabilityoftheengagementwiththesestakeholdersisrequired.reporting.Fillingtheknowledgegap:inandacrossmanyorganisations,sustainabilityreportingwillrequireInﬂuencingthecontentandpaceofregulatorytrainingonthewealthofnewknowledgerelatingtodevelopments:sustainablebusinessregulation,itssuchtopicsastheenvironment,economy,humanreportingandassurancerequirementsareprogressingrights,socialandworkingconditions,responsibleatpaceandwillcontinuetodoso.Inturn,toensureproducts,andsociety(GRIn.d.).fit-for-purposeregulation,organisationsshouldmake69SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:PEOPLEASENABLERSBox7.5:Complexmulti-dimensionalproblemsandtheﬁveintegrative-thinkingcapabilitiesComplexmulti-dimensionalproblems:Empathising:solvingproblemsthroughunderstandingFigure7.2:Theﬁveintegrative-thinkingothers’viewpointsandseeingthingsfromthecapabilitiesaredifficulttodefineinvolvecomplexsystemsperspectivesofthevariousstakeholders.Source:Machado,Chenetal.2023aredifficulttoapproachintroduceuncertaintyastowhetherorwhentheyExploring:searchingoutunfamiliarterritorytolearnaboutit,andinvitingotherstojoinintheexploration–havebeenfullyresolved.askingquestions,modellingplausiblescenariosandTosolvethem,individualsneedtoapplyfiveintegrative-thinkingcapabilities(Figure7.2).testingassumptions.ThesecapabilitiesarethepersonalandinterpersonalCo-creating:seizingtheopportunitiesthatarisefromskills,mindsetsandbehavioursnecessaryincollaboratingwithothers,includingpeopleoutsideproblem-solving.one’sownorganisation.Continuallybecoming:nurturingthefivepersonalcapabilitiesthatenableafinanceprofessionaltoEmpowering:enablingteammembersand,insomegrowandevolvecontinuallythroughtime.cases,externalstakeholders,totakeactionsandtoinfluenceoutcomes.70SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:PEOPLEASENABLERS7.3.2WhoisaccountableandwhataretheBox7.6:Doesyourorganisationcurrentlyreportpeople-relatedsustainabilityreportingsustainability-relatedinformation?Whoisconsiderations?accountable?Apulsesurveyofover1,000respondentsengagedinBoardofdirectors/committeeC-suiteexecutivesACCA’sworkhelpedusappreciateviewsonthoseInternalworkingcommitteeOthercurrentlyaccountableforreportingonsustainability-relatedinformation.Over60%ofsurveyrespondents9%identifiedtheboardofdirectorsorboardcommitteesin11%thisrole(seeBox7.6).However,thisismerelythetipoftheicebergasresponsibilitywillextendtomanymore17%acrosstheorganisation.63%Seniormanagement,effectivelythosewhosetthetonefromthetop,thereforeincludingthosechargedwithgovernance,willneedtostartnow,anddrivecontinualincrementalimprovementinmattersof:awarenessontheindividualandcollectiveresponsibilityforreportingorganisationdesign–positioningofthekeyresponsiblefunctions,ensuringcapacityandaccessingcapabilitiesexternalengagementandmanagementtalentmanagement.Source:ACCA2023d;1,015respondents.71SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:PEOPLEASENABLERS7.3.3CreateawarenessoftheirresponsibilityTheorganisation’ssustainability-relatedmatters,amongindividualsandteams,aswellastheespeciallyrisksandopportunitiesincludethewhat,whyandhowofreportingimplicationsforachievementoftheorganisation’sstrategyunderarangeofscenarios.TheseniormanagementandthosechargedwithgovernancearelikelytorequireawarenessoftheThekeyreportingrequirementsandassociateddatadevelopmentsinmajorsustainabilityreportingstandardsfortheorganisationmustbeassessed,plusthoseandframeworks,includingthosefromtheISSB.Thesewillrequiredbystakeholdersandthematerialinformationincludetherequirementsrelevanttotheorganisation’saboutsustainability-relatedrisksandopportunitiesownjurisdictionandsignificantoperations,including(SRROs).whereitisamajorcomponentofavaluechainofotherreporters.Thiscapabilitydevelopmentmustextendbeyondseniormanagementtoacrosstheorganisation,asthiswilldriveBeforeturningtoreporting,thereshouldbeafocusuponcommitmentandqualityinsustainabilityreporting.thedevelopmentofcapabilities,includingknowledge,Therefore,weproposeacombinationoftop-downandskillsandmindset,thataregenerallyneededwhenbottom-upapproaches.Thiscanfacilitatethenecessaryconsideringsustainability.Thismoregeneralconsiderationchangeinculturetoplacegreateremphasisonshouldencompassthefollowingareas.sustainability.Eachfunction,whetherexercisedbyinternalteamsoranycommitteesthatuseexternalresources,suchThemeaningofsustainabilityandthecontributionasaudit,riskandevenremunerationcommittees,shouldthatsustainabilityreportingcouldmaketowardsappreciatetheabovemattersbothinthecontextoftheirorganisationalsuccessinthecontextofstakeholders,roleandthebiggerpicture(seeBox7.7).resourcesandstrategies.Stakeholdersrangefrominvestorsandconsumers,toemployeesandtheircommunities,etc.,andsoitisvitaltoconsiderwhattheimplicationsoftheorganisation’sstrategy,itsprogressandbusinessmodelmightbeforthesestakeholders.Thismayincludeanoutlineofthevalueandcostseachstakeholderrespectivelyreceivesandincurs,andwhatthatmeansfortheorganisation.Resourcesuponwhichtheorganisationisdependentaffect,forinstance,theriskspresentedtotheorganisationbytheircurrentuse.Differentenvironmental,socialandﬁnancialsustainabilitystrategiesarerelevanttotheorganisation,asarethewaystheymightbeimplemented:netzeroandcarbonmanagementUnitedNationsSustainableDevelopmentGoals(UNSDGs)circulareconomyenvironmentalconservationsocialsustainability–qualityoflife,equality,democracy,andsocialcohesionlocallegislation.72SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:PEOPLEASENABLERSBox7.7:ExamplesoffunctionalteamquestionstoraiseawarenessTohelpdevelopbetterawarenessofsustainabilityreporting,specificallyofwhatitentailsanditsvalue,thefollowingareafewquestionseachfunctionalteam,suchaspurchasing,processing,finance,andsellingcouldconsiderinabottom-upapproach.InthecontextofmyteamWhataretheSRROsapplicabletous?Including:theirtype–transitionorphysical?thetopic(egclimate,humancapital,landandwateruse)?thestakeholdersandhowtheyareaffected.HowmighttheseSRROsaffectourorganisation’sprospectsandhowmighttheassociatedinformationbematerialforourteam’sfunction?Orwoulditaffectthemdifferentlyfromotherfunctionalteamsandattheorganisationallevel?Howsimilararethey?DotheSRROsnetoff,couldtheybenettedofforexacerbatedwhenweconsiderotherfunctionsortheorganisationallevel?Whatwillwedotomanageourrisks?Andhowwillweworkwithotherfunctionstoachievebettersustainabilityoutcomesfortheorganisation?Whatshouldwebecommunicatingtoothersonourrisksandtheirmanagement?Howisoursustainability-relateddatausedbyotherfunctionsincreatingtheorganisation’ssustainabilityreport?Inwhatformatdotheyrequirethisinformation?Whatarethekeysourcesofdatatosupportourreportingrequirements?Whatdoweneedotherfunctions,teamsorexternalstakeholderstoprovide?Collectiveinsightcanthenbeconsolidatedanddistilledasrelevanttoseniormanagementandtheircommittees,whichwillhelpinthedevelopment,implementationandmanagementofprocesses.73SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:PEOPLEASENABLERS7.3.4Reviewtheorganisationdesign–reports)–Section3ondeterminingthematerialtheorganisationmayberequiredtoapplypositioningoffunctions,capacityandaccesssustainability-relatedinformationtobereportedsustainabilityreportingstandardsinadditiontotocapabilitiesstartswithaneedtoappreciateagreatersetofrisksthoseapplicabletotheirjurisdiction.andopportunitiesforallstakeholdersbeforeThewayinwhichorganisationsarestructuredandrunisconsideringwhatismaterialjustfortheorganisationThismaywellmeanmoreresourcecapabilityforcentraltotheireffectiveoperationandshouldbereviewedreportingscanningforpotentialjurisdictionalsustainability-whenmajorchangesarise,suchastheintroductionofhowSRROscouldreasonablybeexpectedtorelatedregulatorydevelopmentsthatmayaffectthesustainabilityreporting.affecttheorganisation’sprospects.organisation’soperations(seeBox2.2insection2.2).Frommanaginganalysis,andintegrationofdatatotheTherewillbechangesinwaysofworking,forTheywillneedtousemoresophisticatedriskmanydifferinguserneedsofsustainabilityreportingdatainstance:methodologies,forinstance,usingscenarioanalysistoandinsights,organisationdesignshouldincorporate:inhowtheworkoftheriskfunctionispresentedassessthewayinwhichinformationaboutselectedandcommunicated,owingtothegreateruseoftherisksandopportunitiesmaydynamicallybecomeemphasisingtheenhancedandmoreconnectedrolesresultingriskinsightsbyotherteams,includingmaterial.Also,sincethisisareportingrequirement,ofriskandfinancefunctionswithinexternalreporting–perhapsmoreinthebeingabletoidentifyrisksandopportunitiesthatarefinancial,aswellasthesustainability,report(Box7.8)likelytoaffecttheorganisation’sprospectsinthethegreaterneedforinternalauditinbeingmorecollaborativewithotherfunctionsfuture,eveniftheycurrentlydonot,wouldgreatlyhelpintegratingandmanagingdiversereportingregimes,andexternalstakeholders,inordertoappreciatetheorganisationtodesignabettersustainabilitytheaforementionedtopics,stakeholdersandthestrategy(seeBox3.8inSection3).andinterrelationships.flexiblecollaborativeandtechnology-enabledTherewillbedifferentneedsforaccesstoThesizeoftheriskfunctionandcapabilitiesneededsustainabilityexpertise,togetherwiththeskillstoenvironments.willchange.Togetherwiththefinancefunction,theengagewithit.Therationaleforthisisarticulatedinriskfunctionwillneedtotakeonextratasks.Section3onmaterialityandSection4ondataEmphasisetheenhancedandincreasinglyconnectedcollection.roleoftheriskandﬁnancefunctionsThetwofunctionswillneedtotrackandreportThefinancefunctionislikelytobeawareofcomingonpotentialrisksinaccordancewiththeTheorganisationdesignwillneedtosupportaccesstochangesinsustainabilityreporting,whereastheriskrequirementsofthesustainabilityreportingcapabilities,probablythroughconnectionswithothersmanagementfunctionmaynotbe.Atahighlevel,therolestandards.acrosstheorganisation,andexternalspecialists,asofriskmanagementmayappearunchanged,buttherewillindicatedinthesurveyresultsreportedinsection5.3,bepracticalchangespertainingtosustainabilityreportingThesestandardsarebeingreleasedandupdatedBox5.2.Insummary,accesswillsupportinsights(SeeBox7.8).piecemeal,withsomelegalisticlanguage.Thereisrelatedto:urgencyinreportingdrivenbyfairlyimmediatethevaluechainforScope1,2or3GHGemissions,Therewillbechangesinthetopicsandrangeofreportingdatesonwhicheachnewstandardstakeholders,includingtheinterrelationshipsandbecomeseffective.Thismeansfinanceandriskorgeopoliticaleventsthatmayindirectlyaffecttheinterdependencies,fortheriskfunctiontoconsider.functionsmayneedtoupskillatshortnoticetoorganisationTherewillprobablybeagreaterfocusthanmaybetheappreciatethelanguageused,andtrackandworkpolicyevents,suchastheConferenceofthePartiescasecurrentlyon:withthesestandardswhiletheyareindevelopment,(COP)(UnitedNationsn.d.)linkingtoactioninissuesrelatingtotheplanet(climate,pollution,forexample,fromtheexposuredraftstage.relevantjurisdictionsbiodiversity,naturalecosystemsandecosystemactivelisteningtocurrentandpotentialprospectiveservices,etc.),people(humanrights,humancapital,Financeandriskmanagementmustconsideremployees,whoarelikelytoprovideinsightsonwellbeing,equality,etc.),prosperity(financialjurisdictionalregulatorydevelopmentsbecause:societaltrendsthatcouldaffecttheorganisation’sgrowth,reducedpoverty,education,etc.)andpeaceanorganisation’sstrategymayfocusonfinancialprospects,particularlywithintheircommunities(seeandpartnerships(sustainablecommunities,justice,sustainability,yetoperateinajurisdictionwhereBox7.9)oretc.)reportingisrequiredonthesustainability-relatedacademicandbusinessinsights,suchasontheresourcesorcapitals(natural,human,financial,mattersofmaterialconcerntoabroaderrangeofdevelopingandcontinuallyevolvingtheapproachtomanufactured,etc.)uponwhichtheorganisationisstakeholders,orriskappreciationanditsreporting,forperformancedependentorhasanimpactmeasurementofthechosenstrategy.theSRROsrelevanttostakeholders(ofwhomtherewillbeagreatervarietythanforfinancial74SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:PEOPLEASENABLERSBox7.8:ExampleoftheenhancedriskBox7.9:TheimplicationsofmaterialityonthemanagementroleworkofriskteamsTheworkofriskmanagementmaywellincorporate‘Theformofmateriality,whetherfinancialordoublemoremonitoringandmanagementofthecontent–financialandimpact–hasconsiderablebearingonflowingintofinancialandsustainability-relatedtheinterconnectionsriskmanagerswillneedtodisclosures.consider.ThiswillincludeidentificationoftheSRROsthat‘Thetypeofmaterialitywillinformtheparameterscouldreasonablybeexpectedtoaffecttheandextentofscenarioanalysis.Impactmaterialityorganisation’sprospects,especiallyifandhowwillneedtoreflectimpactonmorestakeholderstheymaydynamicallyrelatebacktothebeyondinvestors,say[on]suppliersandconsumers.organisation:Further,wewillneedtoconsiderthebeyondthosemosttraditionallyassociatedinterconnectionsbetweenthecapitals,notjustofwiththeindustrysustainability-relatedrisksandopportunitiestoowingtoashiftinthemindsetofinvestors,financialandmanufacturedcapitalbutbetweenallconsumers,andemployeestowardscapitals.sustainability,and/orresultingfromdevelopmentsinsustainability-‘Ourenterpriseriskmanagementwillneedtoreportingstandards.change–notjustinthemodelsweusebutimportantlytheextenttowhichwemustworkwith’Fromourperspective,themostcriticalESGaspectotherstodischargeourrole.Wemayneedteamsforminingcompaniesissafety.However,giventhethatarebigger,moreconnectedandwithaccesstoheightenedfocusonclimatechangeandmorespecialistskills’(ariskexpert).biodiversity,externalenvironmentalfactorspropelthesehot-buttonissuestoahighlevel,therebyInvestininternalauditshiftingfocusawayfromsafety.ThisisanintriguingTheimportanceofverificationshouldnotbephenomenonwe'recurrentlyencountering’(aCFO).underestimatedandisexploredinSection8.Fundamentally,verificationenablestrustandadegreeofTheresilienceoftheorganisationcanbecomfortoverthesubjectivityassociatedwithsustainability-determinedbyusingextendedscenarioanalysisrelatedinformation,whetherthisstemsfromthedatathatconsidersmanymorevariablesthancollection,itsanalysisandevaluationorfromtheapproachpreviously.toreportinginsights.Therefore,theworkofinternalauditisimperativetoreportingreliablesustainability-relatedRiskmanagementcansupportthearticulationofinformation,astheywillbesufficientlyclosetothetheeffectsofSRROsforaccountingand/orchangestoembedtheorganisation’ssustainabilitydisclosure,forexampleassetvaluationsorstrategiesanditsreporting.provisions(egliabilitiesofuncertaintimingoramount),suchaswithrespecttophysicalorFurther,whereexternalassuranceissought,thentheirtransitionrisks,andactivitiesaimedatachievingrelianceontheworkofinternalauditmaywellbeGHGemissionstargets.increased.Whereinternalauditworkisnotdoneinanorganisationtoday,itmayneedtobeincorporated,aspartofthebroaderroleoffinance,asaseparatefunction,oroutsourced.75SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:PEOPLEASENABLERSEnablegloballydistributedwaysofworkingforBox7.10:Aleaderforsustainability-relatedmulti-jurisdictionalandbetterintegrationofreportedinformationinformationTheorganisationalstructuredesignmayneedto‘Wehaveseparatefinanceandsustainabilityteams–incorporatenewwaysofworking.fundamentallytheyhavedifferentbusinessresponsibilities’.Ahubandspokeoperatingmodelcouldcaterforjurisdictionaldifferencesinsustainabilityreporting.‘Thesustainabilityteamsupportswiththecollation,Giventheprevalenceoffinancialreportingbasedonanalysisandprovisionofclimate,othertheIFRSAccountingStandards(eitherrequiredorenvironmentalimpact,employeediversity,humanpermitted)indifferentjurisdictions,manyorganisationsrights,etc.foruseinitsvariouspurposesfrommayhaveestablishedtheirreportingteaminoneprocurement,marketing,toourintegratedfinancialjurisdiction.Thismaynotbethepossibleforandsustainabilityreporting.Importantly,thisteamorganisationswithapresenceinseveraljurisdictionsalsodevelopsrecommendationsforcontinualwhere,atthetimeofwriting,sustainabilityreportingimprovementinthedeliveryofoursustainabilityrequirementsaremorelikelytodiffer.Thesestrategyandinturnoursustainabilityreport.Fororganisationsmayneedtobasesustainabilityreportinginstance,supportedbyinsightfromtheinternalauditexpertiseineachofthesedifferentjurisdictions,henceteam,theyindependentlyconductthecycleofdeterminingthelocationofreportingfunctionsandsoplan-do-check-action-plan’.possiblyemphasisingtheneedforgloballydistributedteamsconnectedbytechnology.‘Thissustainabilityteamisahubandleaderofspecialistinformation,andweinthefinancefunctionIntegratingtheworkofﬁnancialandsustainabilityworkcloselywiththemwhenourworkoverlaps.Afunctionswillalsorequirethatonewillbeinakeybenefitisthatthiswayofworkinghasledtoleadingrole.Alltoooften,ACCA’ssustainabilityandindividualsinthatteamdevelopingfinancialandintegratedreportingworkindicatethatsustainabilitybusinessknowledge.Equally,wehavedevelopedandfinancefunctionsareentirelyseparateteams,withsomesustainabilityknowledge.Theresultisthatweinsufficientcollaborationleadingtoweakintegrationofarebetterabletoasktherightquestionsandgetinformationinreporting.Insupportofourbetterqualitysustainabilityinsights’(anrecommendationsovertheyears,severalroundtableamalgamationofcommentsfromroundtableparticipantshavealsorecommendedashiftinparticipants).organisationdesigntobringtheseteamscloser,eitherintheformofinformalinterventions,includingencouragingcross-functionalengagement,orinmoreformalinterventions,suchasmergingtheteamsbutdefinitelywithoneteamtakingalead(seeBox7.10).76SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:PEOPLEASENABLERSCreateaﬂexible,collaborativeandtechnology-enabledBox7.11:CollaborativeinsightenvironmentstoBox7.12:Theneedforinformationisnotenvironmentfordata,insightsandfeedbackloopsinformfuturebusinesshomogeneousFlexible,collaborativeenvironmentswithintheorganisationarecrucialforanumberofreasons,including‘Ourconglomeratebusinessincludesanagricultural‘Theneedfordatawillvarydependingonthetypetheneedfor:segment,andweoperateinacountrywheretheofinvestor.Someinvestorsareaftertheholisticlevelsofeffluentweemittedintothelocalpictureofacompany’ssustainabilitycredentials,andupskillingamongemployeesandtheirdepartments,environment–landandriver–didnotcontraveneothersarewantingtomakespecificcomparisonssuchasintheassessmentoftheinterconnectionslocalsustainabilitylaws.acrosstheirportfolioonaspecifictopic.Therefore,betweensustainability-relateddataandinsightsreportersseekingaccesstosustainablefinancewill‘However,wefoundthatouremissionscontravenedneedtobeabletoprovidetheirdataindifferenttheanalysisanddiscussionofinsightstoshapethethelawsofanotherjurisdictionintowhichwewantedwaysforthatpurpose’(participantinACCAandcontentandpresentationofreportingand,insometosellourproduce.TheprocurementduediligenceCFA’sGreenFinanceSkillsWebinar,April2023)instances,feedbacktothefuturestrategyandbusinessprocessrelevanttothisotherjurisdictionrequireda(ACCAn.d.b)model(seeBox7.11)broadrangeofsustainability-relatedinformation,includingthatrelatingtoouragriculturalemissions.RoundtableparticipantscitedtechnologyastheenablerofthecollectionandhostingofanalyseddataandFurther,wediscoveredthatovertime,giventhesizetheseflexibleenvironmentsbecausemanyindividualswillinsightstoenableuseindifferentforms,whetherforofourpotentialoperations,wewouldalsohavetoneedtocollaborateforsustainabilityreporting.Theymaytheorganisation’sownoritsvaluechain’sreportingissuesustainabilityreportsinthisotherjurisdiction.notbeinthesamelocation,orneedthesameinformationpurposes.Intheabsenceofstandardisedtemplatesforinthesameway.Thiswilldefinitelybethecaseinlarger,industriesandgeographies,valuechainreportingmay‘Theoutcomeisthatwehavehadtoremainalerttomorecomplexorganisationsoperatinginmultiplewellbedifferentforeachvaluechaininwhichthethesustainabilitylawsofallotherstrategicindustries.AsindicatedearlierinSection5onprocessandorganisationoperates(seeBox7.12).jurisdictionsrelevanttoouroperation.section7.2ontechnology,thetechnologyusedcouldrangefromspreadsheet-basedtemplateshostedon‘Therefore,webuiltacollaborativedata-insightsweb-basedcollaborativeplatformsfordatacollection,tosharingenvironment.Hereweinformonsophisticatedapplicationsthatintegratewithfinancialdevelopmentsinreportingandregulatoryoperatingreportingsystems.Ifthelatter,thenthiswillhaverequirements,insightsfrombeinginvolvedinimplicationsforstrategicinvestment.Irrespectiveoftheprocurementandongoingvaluechainmanagementtechnology,technologistswillneedtoworkcloselywithprocesses,etc.Theresultisthatweareabletosustainability,finance,relevantinternalfunctionsandvaluecomplywiththemoststringentlawsrelevanttoourchaincounterpartstodesignandrolloutsystems,withoperationsandreportagainstthem’(anESGandsomepotentiallyhavinginterfaceswiththoseofregulatoryaccountancymanager).authorities(seeBox7.13).77SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:PEOPLEASENABLERSBox7.13:Thetechnologist’sroleinthedesignIntroducesustainabilityreportingtherightway–attheBox7.14:Introducingsustainabilityreportingtoofﬂexible,collaborativeenvironmentsrighttimeandwiththerelevantrolesstakeholdersStakeholderengagementisanimperative,whetherin’Technologistswerecentralinthedesignofourconductinglifecycleassessments,determiningthescopeVarioustechniquesforintroducingsustainabilitycarbonfootprinttoolusedbyvariousteamsfromofthevaluechain,assessingrisksandopportunities,reportingrequirementstoexternalstakeholdersproduction,measuringchangesinoperationalestablishingmetricsandassociateddatasources,orweresuggestedbyroundtableparticipantsprocesses;sales,advisingclientstomakesustainablecreatingfeasiblemethodsfordatacollection,etc.including:choices;tothefinanceteam,responsiblefortheproductionoftheintegratedreport.Sufficienttimeshouldbeallocatedfortheseactivities.initialengagementusingapproachesbasedonTheywillalmostalwaystakelongerthanexpectedanddesignthinkingtodevelopandcontinuallyTheyemployedasystems-design-thinkingrequirecontactwithindividualswithwhomtheimprovetemplatesforcollecting,analysingandmethodology,essentiallyonebasedonanon-linear,organisationmaynotnormallyengage,forinstance,withsharingevaluationofsustainability-relatediterativeprocessto:understandusercapabilitiesandthesupplier’sITanddataspecialistratherthanthemoreinsightsneeds;stateandchallengeuserneedsandusualengagementwiththesalesandfinancefunction.assumptionsinordertocreateideasforsolutions;makingrequirementstoprovidesustainability-prototype;test;build;implementincludingtraining,Further,whenintroducingchange,trainingfor,andrelatedinformationbeing:andcontinuallyimprove,whichmaymeanloopingmitigatingresistanceto,thatchangewillbenecessary.mandatoryforanynewsupplierbacktoanyoneoftheabovementionedstages’Theremaywellbeorganisationsorindividualscentraltomandatoryinrenewalofsuppliercontracts,or(aCFO).thesuccessofsustainabilityreportingnotyetengagedinvoluntarybutencouragedthroughanthevalue,orsimplyreluctantbecauseoftheeffortarticulationofthebenefitsassociatedin7.3.5Engageandmanageprovidersandusersrequired.Justaswithawarenessandeducationfortheprovidinginformationofsustainability-relatedinformationorganisation’sfunctionalteams,externalstakeholderswillrequireawarenessraisingandmotivating.Therefore,theserunningawarenesscampaignsandworkshopsDataandinformationflowsbetweentheorganisationandchange-managementactivitieswillbeinadditiontotherelatingto:externalstakeholdersareakeyrequirementformoreusualstakeholder-relationshipmanagementonesregulatoryrequirementsdevelopinglocallysustainability-relatedinformationcollection,analysis,and(seeBox7.14).andthoseinotherjurisdictionsthatmayhavecommunication.Therefore,organisationswillneedtoplanglobalorfar-reachingimpactforexternalstakeholderengagementto:benefitsofsustainabilityreportingfinancialandnon-financialcostsrelatingtotheintroducesustainabilityreportingtherightwayprovisionofsustainability-relatedinformation,setexpectationsforcontinuingchangeincludingopportunitiestoworkshoptogetherlearnfromsustainabilityexperts,andhowtheymaybeovercome;andembedethics.buildingthemintoregularengagementwithfocusedagendatimefordiscussiononsustainability-relatedriskmanagement,includingmitigationsandaccesstodata.Source:Anamalgamationofsuggestionsfromroundtableparticipants78SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:PEOPLEASENABLERSSetexpectationsforcontinualchangeBox7.15:MakingsustainabilityaregularpartofBuildinopportunitiestolearnfromsustainabilityOnceengagedandusingreportingprocessesandallsupplierandclientengagementexpertsortocollaboratetoovercomesomeofthesystems,updatesforchangesinregulation,collectionandresourcechallengesprocessingofdatawillbenecessarybut,importantly,will’Initially,introducingrequirementsforcurrentEventhebest-resourcedorganisationswillneedtoreflectalsobenecessitatedbychangesinthesustainability-supplierstoprovideinsightontheirsustainability-onhowbesttobringinskillsandlearningfromoutsidetherelatedriskprofilewithinthevaluechain.relatedrisksandopportunitieswasmetwithorganisation,whetherfromacrosstheindustryorthenervousnessofnegativeimpacttotermsoftrade.geographicarea,todealwithspecificsustainabilityissues,Stakeholderacceptanceofandengagementinworkingorforreportingand/orverification.withchangeonaregularbasisisessential.Thosewithin‘Wehadtomakeclearourrationaleforrequiringthethevaluechainwillneedtoknowwhenandhowtoinformation,includingourreportingrequirementsExternalexpertisewillalmostcertainlyberequiredfordisseminatetheirinsightsaboutchangestotheirSRROs’butalsoourcollectiveresponsibilitytoworkspecificspecialisttasks.Organisationsareencouragedtoprofile.Asreferencedintheabovesubsection,thistogethertoachievebetteroutcomes.incorporatemechanismsforknowledgetransferandinformationmaynotalwaysstemfromthoseresponsibleupskillingin-houseteamswhiletheseexternalexpertsforsales-relatedsupplierandcustomerrelationship‘Oursuppliercontractsincludeincentivesforcompletetheirspecialisttasks.Asaminimum,suchmanagement.Also,considerationwillneedtobegiventoprovidingverifiedinformationandpenaltiesforknowledgetransfershouldensurethattheorganisation’smitigatingpossibleconcernsthatsharingriskprofilesmaynon-provision.employeesarebetterequippedtoasktherightquestionsleadtofuturedetrimentaltermsoftrade(seeBox7.15).andunderstandtheanswerswhentheydrawonthework‘Further,weregularlyprovideinsightonthevariousofexpertsinthefuture.typesoftriggersthatcouldalterasustainability-relatedriskoropportunity,includingvisibilityfortheCollaborationamonggroupsoforganisationscanprovideonesweface.Therearesomestandardoneswhichcost-conscious,efficientandeffectivewaysoflearningonweincludeonachecklistsupportedwithansharedthemesorobjectives,suchastherequirementsofopportunitytoaddtothelistbythesupplierorspecifictypesofreportingand/ortheirpracticalcustomercompletingthechecklist’(achangeapplication(seeBox7.16).Suchanapproachwillcertainlyexpert).helpless-well-resourcedorganisationsgetstartedinsustainability-relatedreporting.79SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:PEOPLEASENABLERSBox7.16:HarnessthepowerofconnectionstosupportimplementationDifferentjurisdictionsmoveatdifferentpacesandareatAutomatingdatacollectionandsharing,wherebydifferentstagesofdevelopmentandmaturityoftheirdatacouldbesubmittedthroughacommondisclosureframeworks.Inaless-maturesustainabilityplatformwiththeappropriateverificationandreportinglandscape,especiallywheresustainabilityassuranceprocessinplace.Thesubmitteddatareportingisnotmandated,organisationsmightcouldthenbecollatedandsharedinaggregateasaconsidercollaboratingandworkingcloselywithotherformofindustrybenchmarkorserveasareliablestakeholdergroupswithintheirjurisdiction(egsourceofinputforreportingbyindividualregulators,standards-setters,industrypeers,systemorganisations(egoneorganisation’sreportingofitsproviders)todriveconsistencyandimproveScope1and2GHGemissionswillinformanothercomparability.organisation’sreportingofitsownScope3GHGemissions).Potentialareasofcollaborationincludethefollowing.SharingofexperiencesthroughlearningandDevelopingapplicationguidanceforaspecificdevelopmentprogrammes.Industriesandframeworkorstandard,ortradeandprocurementprofessionsstandtogainthroughcontinuouspolicies.Thiscouldincludedevelopingaknowledge-sharing.Understandingothers’standardisedmeasurementmethodologytogethersustainabilityreportingjourneysaswellaslearningwiththeapplicablemetrics,orperhapsproducingafromothers’experiencescanshortentheoverallstandardisedorindustry-alignedtaxonomy.learningcurve.ThiswillalsohavetheaddedbenefitofsupportingprogresstowardscombatingclimateDevelopingindustry-standardstructuredchange,whichisessentiallyacollectiveraceagainsttemplates,egtoidentifySRROsandquantifyantime.organisation’ssusceptibilitytothem.Thesetemplatescanbuildinconsiderationofhowacombinationofriskfactorsmightcollectivelyaffectanorganisation.Datacollectedthroughsuchtemplatesmightsubsequentlyfeedintoamitigationindex,whichcanthenallowbettercomparisonofrisksamongorganisations.80SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:PEOPLEASENABLERSAnotherexcellentsourceofguidancearethemanyresourcesbeingdevelopedbyprofessionalaccountancyandtradeorganisations.Box7.17setsoutafewdevelopedbyACCA.Box7.17:SourcesoflearningThefollowingaresometheresourcescurrentlyavailable;ourresourcesareconstantlybeingupdated,thereforekeepuptodatebyaccessingthelatestProfessionalinsights.ThemeTitleConsideringsocietalissuesAccountingforSociety’sValues(ACCA2023e)ImprovingyourintegrativethinkingtoIntegrativeThinking:theguidetobecomingavalue-addingCFO(Machado,Chenetal.2023)managecomplexmulti-dimensionalproblemsEthicalDilemmasinanEraofSustainabilityReporting(Machado,WeaverandSparkes2023)BeingalerttoethicaldilemmasChiefValueOfficer–theImportantEvolutionoftheCFO(ACCA2023a)GreenFinanceSkills:TheGuide(Skelton2023)TheroleoftheCFOindrivingvalueSustainabilityAssurance–RisingtotheChallenge(RogdakiandDiolas2023)GreenBudgeting:AToolkitforPublicSectorFinanceProfessionals(ACCA2022b)GreenﬁnanceskillsCompanies'ReadinesstoAdoptIFRSS2Climate-relatedDisclosures(Baboukardosetal.2022)SustainabilityassuranceconsiderationsAccountingforaBetterWorld:PrioritiesforaTransformingProfession(ACCA2022c)GreenbudgetingforpublicsectorClimateActionandtheAccountancyProfession:BuildingaSustainableFuture(ACCA2021c)Organisations’readinessforIFRSS2ProfessionalAccountantsattheHeartofSustainableOrganisations(ACCA2021d)TheroleoftheaccountancyprofessioninInvisibleThreads:CommunicatingIntegratedThinking(ChenandHawksley2021)creatingabetterworldProfessionalAccountantsChangingBusinessforthePlanet:aGuidetoNaturalCapitalManagementforBusinessLeaders(ACCA2020)ClimateactionandtheaccountancyprofessionbuildingasustainablefutureIntegratedThinking–theKeytoSMEs’Resilience?(Chow2022)HowSMEsCanCreateaMoreSustainableWorld(ACCAandCAANZ2022a)TheroleofaccountantsandtheirskillstocreateHowSMEsCanCreateamoreSustainableWorld(playbook)(ACCAandCAANZ2022b)sustainableorganisationsDemonstratingorganisations’integratedthinkinginintegratedreportingTheroleofprofessionalaccountantsinnaturalmanagementSMEsapplyingintegratedthinkingSMEsdevelopingsustainablestrategiesHowSMEscancreateamoresustainableworld81SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:PEOPLEASENABLERSEmbedcompliancewiththeethicalcodeamongallweaknessesinprocessesandsystems7.3.6ManagetalentusingsustainabilityreportingcontentrisksofgreenwashingExternallyfacingteamssuchasmedia,salesandinsufficientcompetenceandduecare,orThestrategyfortalentmanagementwillextendfrommarketingmaywanttousesustainabilityreportingcontentchallengesofindependence.drivingcommitment,knowingthecapabilitiesrequired–sustainabilityisofconsiderableinteresttoconsumers,andaccessingthem,andonwardtoretainingthattalent.especiallywhentheycanalsoappreciatehowBox7.18:WorkingwiththemarketingfunctionThefollowingareafewconsiderationsinthedevelopmentenvironmentalcredentialsrelatetosocialmattersaffectinganddeploymentofatalent-managementapproach.theircommunitiesandproductcost.’OurmarketingdepartmentisincrediblycreativeandsowehaveleveragedthisstrengthtohelpusstretchKnowthecapabilitiesrequiredTherefore,careshouldbetakentoensurethatourthinkingon:howwecanbemoresustainableThroughoutthisguidewerefertocapabilitiesrequired.Insustainability-relatedcontentisusedinaccordancewithacrossourwholeproductlifecycle;howthissection,wesummarisethosethatwehaveidentifiedtheprinciplesofthecodeofethics,whichmaybelittlesustainability-relatedinformationisrelevanttoasthemostimportantoverthecourseofACCA’sworkonknownorappreciatedoutsidetheaccountancyprofession,differentteamsacrosstheorganisation;[and]howthistopicandwithinputfromourroundtableparticipantsraisingtheriskofgreenwashing(seeBox7.18).Inthis,wemightbestcommunicateoursustainability-(seeBox7.19).professionalaccountantshaveamajorcalltoactioninrelatedrisks,opportunities,strategy,governance,championingtheInternationalCodeofEthicsforbusinessmodel,processes,etc.withinourProfessionalAccountants(includingInternationalsustainabilityreportIndependenceStandards)issuedbytheInternationalEthicsStandardsBoardforAccountants(IESBACode)‘Inturn,wehavehelpedimpartprinciplesonhowto(IESBA2018).communicatesustainability-relatedinformationwithintegrity[and]theconnectivitythatsustainabilityWeprovidefurtherguidanceinourworktitledEthicalstrategyimplementationisimpactingproductpricesDilemmasinanEraofSustainabilityReporting(Machado,todayandovertime,includingcontinualinnovationWeaverandSparkes2023).Theworksupportsprofessionalandimprovementinhowwerunourbusiness’accountantsinmitigatingethicaldilemmaspresentingin:(achangemanagementconsultant).82SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:PEOPLEASENABLERSBox7.19:Sustainabilitycapabilities,includingthoserelatedtoreportingFigure7.3:CapabilitiesmostrelevanttosustainabilityTheACCAqualificationcurrentlydevelopsDigitalSustainasustainability-relatedcapabilitiesinanintegratedway,bilityinotherwordstogetherwiththebroadercapabilitiesProficientlyandethicallyusingrequiredbyaprofessionalaccountant.AgoodexampleexistingandemergingdataApplyingintegrativethinkingistheinclusionofsustainabilityreportingstandardstechnologies,capabilities,andactiontocreate,protectandalongsidecorporatereporting.Thesebroaderpracticesandstrategies–tocommunicatelong-termvalueforcapabilitiesaresummarisedwithintheACCACareerenablefinanceteamstoNavigator(ACCAn.d.c).reconfigurehowtheyworktheorganisation,environmenttogetherandshareandsociety.ACCAcontinuallymonitorsandassessesthecurrencyinformation.andrelevanceofthesecapabilitiesintheCareerNavigator.Thecapabilitiesmaybeupdated,refreshed,Collaborationorremovedinthefutureasthesituation/environmentInsightevolves,thereforeitisvitalforalltoremainengagedExpertiseInteractingwithothers:Thefunctionalresponsibilitiesofwiththiswork.Driveengagingeffectivelywithyourrole:drawinguponyourknowledgeandexperience,Figure7.3summarisestheACCACareerNavigatorinternalandexternalcapabilitiesmostrelevanttosustainability(inblack),stakeholders,communicatingapplyingyourtechnicalexpertisetogetherwiththoseidentifiedthroughourworkontothematterinhandinordertointegrativethinking(inred)andthroughengagementclearly,beinginclusiveandwithroundtableparticipants(inblue).Adetailedversioninfluencingimpactfullybenefityourorganisation.ofthecapabilitiescanbefoundwithinAppendixCtothisguide.Yourattitudeandmotivation:ActinginaccordanceThinkingandoperatingatanbeingdetermined,motivatingwithfundamentalindividuallevelinyourWeencourageengagementwiththecapabilities:anddevelopingyourselfandotherstoachieve,stretchingprinciplesofprofessionalorganisationalcontext:accuratelyforpersonaldevelopment–inidentifyingaportfolioandpersonalethicalanalysinginformation,generatingofskillstobedevelopedoverone'scareergoals,beingcuriousandnewideas,makingcleardecisions,opentonewapproachesbehaviour,ensuringtheorganisingwork,focusingonkeyforemployers–inassemblingtheportfolioofskillsandactingwithintegrity.useofappropriateethicalforasustainability-relatedroleframeworksandcomplianceprioritiesandachievingtimelywithlawsandregulations.results.forcareercoaches–inworkingwithcoacheetobuildacustomisedlearninganddevelopment(L&D)programmeforupskillingstaff.Ethics83SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:PEOPLEASENABLERSBox7.19:Sustainabilitycapabilities,includingthoserelatedtoreporting(continued)SustainabilityInsightCollaborationWhatsustainabilityentailsBusinessacumenCommunicationESGmetricsCriticalthinkingPartnershipsSustainabilityanalysisGovernanceandcontrolInclusionTheroleoftheprofessionInnovationInfluencesSolutionsforsustainablebusinessPlanningandprojectmanagementStakeholderfocusCareforresourcesInterconnectedsystemicthinkingConflictmanagementMulti-capitalsthinkingMulti-timeframethinkingMulti-stakeholderawarenessCurrencywithpolicyandregulationsMultipleframeworkapplicationMaintainingcomparativeadvantageFinancialandsustainabilityinformationExtendedandopenthinkingintegrationWorkingwithprecedentsExpertiseEthicsDigitalAdvisoryandconsultancyPolicycomplianceStakeholderapplicationAuditandassuranceEthicalcodecomplianceDesignthinkingFinancialmanagementDilemmasmitigationBusinessmodelfocusPerformancemanagementEthicalmindsetRiskmanagementFinancialandbusinessreportingAwarenessraisingCurrencyRiskmanagementGuardianCommunicationtoolsTaxationPublicinterestAnalysisProductlifecycle/valuechainassessmentGreenwashingriskmanagementInsightsMultipleformmaterialityEthicalcodechampionDatacollectionandanalysisapproachestoNewresourcingmodelssupportsustainability-relateddataalignmentBoundaryforreportinganditsvaluechainDrivetofinancialdataqualitiesBasetechnicalknowledgeofmajorLeveragingproprietaryandpubliclyavailableenvironmentalandsocialtopicsAuthenticitydataTaxasaforceofgoodinreportingandbusinessLeadershipChangeorientationKey:CapabilitiesfromDeterminationLifelonglearningACCACareerNavigator(ACCAn.d.c)WorkingatthemarginsIntegrativethinking:theguidetobecomingaReportwithconfidenceandcouragevalue-addingCFO(Machado,Chenetal.2023)Self-awarenesswithaviewtogrowThisresearchContinualdevelopmentFinancialandnon-financialcostvs.benefitofatakingactionmindsetBeyondcomplianceattitude84SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:PEOPLEASENABLERSDetermineandimplementthestrategytoaccesstheetal.2023).ThiscuriosityneedstobeexercisedwithinTheaboveshouldbesupportedbyclearobjectivesandrequiredcapabilitiesanenvironment,hencetheneedforflexiblemechanismsforfairlyandethicallymeasuringWhendecidingonhowtoaccesstherequiredcapabilities,collaborativeenvironments(seeBoxes7.11;7.13andsustainability-relatedperformancewithinappraisalsystemsandsowhethertorecruit,developinternally,pool(sharingrelatedtext).(seeBox7.21).oftalentbetweenorganisations)orfullyoutsource,itisimportanttoreflectontheresponsestothefollowingBox7.20:Cross-functionalworkinggroupforBox7.21:Examplesofcommitmentapproachesquestions.developingtalentCommitmenttoimplementingandprogressingWhattypeandvarietyofsustainabilitycapabilityisAtthesametimeasestablishingcross-functionalsustainabilityreportingisimperative,andsometimesrequired?Organisationsthatrequirenicheskillsandsteeringgroupstosupporttheorganisation’sanapproachofincentivesandpenaltiesisrequired.manydifferentareasofexpertisemightusean‘accesssustainabledevelopment,toensureorganisationalSomeofthesemethodsarelistedbelow.asandwhenrequired’strategy.capabilitydevelopment,thesegroupsoftenhavetermsofreferencethatinclude:TermsofemploymentcanbeamendedtoHowandwhereacrosstheorganisationiscapabilityinclude:required?Forexample,isitneededacrossmanylearningfromeachothertobuildtheirownsustainability-relateddeliverablesincorporateddifferentteamsorasacentralresource?Ifacrossmanysustainabilitycapabilitywithinobjectivesandkeyperformanceteams,thenupskillingmightbepreferable.indicatorsthatarepotentiallyalsolinkedtoidentifyingcapabilityneedsandgapsremunerationDowealreadyhaveﬁnanceprofessionalsandothersdesigningsystemsfordevelopingthecapabilitiesnon-financialrewards,including:withsomeofthesecapabilities?Ifso,theninternaldevelopmentopportunitiesdevelopmentmightbepreferred.ofothersadditionaltimeawayfromworktogivebackidentifyingandimplementingapproachesfortothecommunityForhowlongiscapabilityrequired?Isitfortheshortawardsforrecognition.orthelongterm?Iffortheshortterm,asharedorcapabilitydevelopmentoutsourcingmodelmightbepreferrableasitmaybesettingandimplementingappraisalofprogressSustainabilitychampions,essentiallyemployeesdeemedcheaperoverall.workingwithpolicymakerstounderstandand,aswhoarealreadyengagedandknowledgeable,aretaskedwithraisingawareness,motivatingandWhatresourcesdowehaveavailablenowtoapplicable,influencesustainabilityregulationeducatingotherstaffinwaysrelevanttotheirdedicatetorecruiting,developingandretainingrelevantnotjustforreportingbutalsofortheroles.talent?Often,togetthebestfromemployees,adevelopmentandimplementationofconsiderableeffortisrequiredtorecruitandonboard.sustainabilitystrategiesSeniormanagementrole-modelsustainabilitycreatinganddisseminatingkeyregulationtoknowledgeandsetsustainability-relatedvaluesFordevelopingstaffinternally,coursesfromindustry,employees,ideallythatisapplicabletotheirroles.andassociatedethicalcode.trade,sustainabilityexpertsandprofessionalbodiesareontherise.OthermethodsincludemakingsustainabilityaMeasureandrewardcommitmentandprogressTheroleofverificationofsustainablepracticesnaturalpartofroleevolution,wherenewcapabilitiesareSustainabilityreportingknowledgeandskillsareoneandreportingisintroducedorextendedtotakedeveloped:thing;anotheriscommitmenttoandapplicationofthoseintoaccounttheapproachandeffortmadebycapabilitiesinanorganisationallycongruentway.employees.ledbynominatedsustainabilitychampions,whoMechanismstodriveorganisationallycongruentdevelopthemselvesandthendisseminateinsightandachievements,skills,mindsetandbehaviourinthe85learningdevelopment,implementationandcontinualimprovementexistthrough:byestablishingcross-functionalworkinggroups,tolearncollaboratively,andcruciallytodrivetheremunerationintegrationofsustainabilitycapabilityrelevanttoeachnon-financialrewardsystemsfunctionalgroupbutwithawarenessofthemattersorganisationallycongruentactivities,includingrelevanttoothers(seeBox7.20)sustainabilitychampions.byencouragingcuriositythroughsharingstrategicproblemstatementsrelatedtosustainabilityanditsreporting,ofwhichthereareseveralexampleswithinACCA’sworkonintegrativethinking(Machado,ChenSUSTAINABILITYREPORTING–THEGUIDETOPREPARATION7.IMPLEMENTINGREPORTING:PEOPLEASENABLERSDevelopandimplementthestrategyforretainingContinuityofexpertiseisdesirable,whetheroutsourcedorStretchingcapabilitiesthroughtasksthatintroducetalentinternallydeveloped,becauseeachorganisation’schallenge.Irrespectiveofrecruitingoroutsourcing,organisationssustainability-relatedissuesandculturewillbedifferentshouldconsiderhowbesttosustainbenefitsfromtheandthattakestimetounderstand.Therefore,irrespectiveMotivatingbyappreciatingandsatisfyingtheirinvestment,asthedemandforsustainabilityexperttalentofinternaloroutsourcedcapability,inadditiontosomeofneeds:islikelytogrow(SeeBox7.22).theearlierconsiderationsrelevanttoaccessingandbyrecognisingthedifferencetheiruniquerewardingtalent,thefollowingpointsfocussolelyoncapabilitiesenable,forexample,relatingtoprogressBox7.22:Thetalentpoolofprofessionalretention.onsustainabilityoutcomes;recognitionisapersonalaccountantswithsustainabilityexpertiseismatter–whilefinancialrewardmaywellbeansmallDevelopingcapabilitiesforenhancedvalue:aspect,non-financialmethodsarealsoverybysustainingemployees’expertise:forexample,important,forexample,internalandexternal’Noonewantstocontinuallyinvestinrecruitingandprovidingtimeforthemtotakepartintheircommunicationstrainingonlytolosetheprofessionaltoanotherspecialistnetworksbyunderstandingthefactorsthatmattertotheorganisation.Thepooloftalent[professionalbyencouragingdevelopmentof:employeeandifpossible,supplyingthem,andifthisaccountantswithsustainabilitycapability]islikelytomoregeneralistcapabilitiesnecessarytogettheisnotpossible,explainingwhynotbethinontheground’(asustainabilityandﬁnancebestfromothersbysettingoutthecareerdevelopmentpathtomeetfunctionleader).integratedaccountancyandsustainabilityambitions.capabilitiesanappetiteforcontinuallearninganddevelopment.86SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION8.VERIFYINGWHATISREPORTED,ANDCONTINUALIMPROVEMENT8.Verifyingwhatisreported,andcontinualimprovement87SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION8.VERIFYINGWHATISREPORTED,ANDCONTINUALIMPROVEMENTFigure8.1:Thesustainabilityreportingcycle:veriﬁcationandcontinualimprovementReportingAllocatingEstablishingVerifyingwhatisreported,ontheresponsibilitythereportingandcontinualimprovementforsustainabilitycollectedlandscapeObtainassurancedatareportingDeterminingthematerialSetmetricstodrivecontinualimprovementCollectingVeriﬁcationsustainability-thedataEnablers:relatedinformationplan,tobetechnology,reportedandpeopleImprovementDeterminingthedatarequirements88SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION8.VERIFYINGWHATISREPORTED,ANDCONTINUALIMPROVEMENTVerificationsupportsbuildingtrustinsustainability-relatedifapplicable,thelocalregulatoryrequirementsintheinformationandreporting,andsoitisimperativetojurisdiction.Also,theassuranceprovidershould:addressingthequalityofreportingacrossallstagesofthesustainabilityreportingcycle,withbothinternalandhavetherightcredentials–egcertification/externalassurancesupportingtheoversightroleofthoseaccreditationchargedwithgovernance.Thiswillpavethewaytowardscontinualimprovementinthequalityofreportedhavetherightsubjectmattercompetence–assustainability-relatedinformation.sustainabilityreportingcanrelatetoalargevarietyofsubjectmatters,agoodunderstandingofthesubjectInthisstage,theguidanceweprovideaddresseshowtomatterattheoutsetisfundamentaltodeliveringahigh-qualityandreliableassuranceengagementobtainassurance(RogdakiandDiolas2023)setmetricstodrivecontinualimprovement(Figure8.1).haveexperiencedealingwiththeindustryinwhichthe8.1Obtainassuranceorganisationoperates,ifindustryknowledgeisimportantGiventheimportanceplacedonsustainability-relatedinformation,thesamerigourmustbeappliedtoreportinghaveagoodunderstandingofthelinkbetweensustainability-relatedinformationasisappliedtofinancialsustainability-relatedandfinancialinformationstatements,toproducedisclosuresthatareassurable.Thatverifiabilityunderpinstheabilityofinformationtobeabidebyethicalrequirementsassuredhasbeenmentionedseveraltimeswhenberegulated.discussingthecollectionofsustainability-relateddata,itsanalysisandtheuseoftechnologytoproducehigh-quality8.1.3Expandtheroleoftheauditcommitteesustainability-relatedinformationthatiscredibleandcanberelieduponfordecision-making.Theauditcommitteeplaysanimportantroleineffectivecorporateoversight.Ifthereisnoauditcommitteeinthe8.1.1Considerthetypeandlevelofassuranceorganisation,thatroleremainswiththosechargedwithgovernance.Assurancegivesconfidencetousersofsustainability-relatedinformation,includinginvestors.ThelevelofTherolesandresponsibilitiesoftheauditcommitteeinassurancemaybedeterminedbyjurisdictionalregulations.relationtosustainabilityreportingshouldmirrorthoseforWhileorganisationsmaybeginwithobtaininglimitedfinancialreporting.Theauditcommittee’sremitshouldassurance,reasonableassuranceoversustainability-include:relatedinformationmaybecomethecommonpracticewhenstandard-settingandapplicationofsustainabilitybuildingstakeholders’trustonthecredibilityofthereportingstandardsbecomemoremature.organisation’ssustainability-relatedinformationMeanwhile,internalauditistooimportanttoignore.Theadvisingthosechargedwithgovernanceontheinternalauditfunctionshouldensurethatinternalcontrolsassurabilityofsustainability-relatedinformationforthereportingprocessareeffective,andthattheinformationprovidedbydifferentpartsoftheorganisationdeterminingthescopeforinternalandexternalisreliableandconsistent.assurance8.1.2SelectassuranceprovidersdeterminingthelevelofassurancedevelopingorstrengtheningthepolicyfortheWhenselectingindependentassuranceproviders,it’simportanttounderstandwhatoptionsareavailableand,appointmentofsustainabilityassuranceproviderselectingtheindependentassuranceproviderensuringassuranceprovidershaveaccesstoappropriatestaffandsupportinginformationoversightoverthequalityoftheassuranceservices.Theauditcommittee,asawhole,shouldhavetherelevantcompetencetofulfiltheseexpandedresponsibilities.89SUSTAINABILITYREPORTING–THEGUIDETOPREPARATION8.VERIFYINGWHATISREPORTED,ANDCONTINUALIMPROVEMENT8.2SetmetricstodrivecontinualFeedbackfromkeystakeholders,includingprimaryimprovementusers,onanynewsustainability-relatedrisksandopportunities(SRROs)thatcouldaffecttheSustainabilityreportingandalltheassociatedprocessesorganisation’sprospects,ortheremovalofanySRROswillbearelativelynewexperienceformanyorganisations.andtherelatedinformationfromnextyear’sreportProducinghigh-qualitysustainability-relatedinformationwillbeajourneythatinvolvescontinualimprovementandBox8.1:Theinﬂuenceofinvestorratingcontinualcollaboration,bothwithintheorganisationandagenciesonimprovingdataqualityexternally.Forexample,thiscouldinvolveputtingfeedbackloopsinplacetogatherstakeholders’responses‘Asmanyinvestorsstilluseratingframeworksfortohelptheorganisationgaugetheusefulnessofreporteddatastatisticsanddatascreening,wewillimproveinformation.ourreportsbasedonthoseproactiveratingsandprovidemorecomparableindicators’(aCFO).Itcouldalsoincludeproactivelysettingtargetstocontinuallyimprovethequalityoftheorganisation’s8.2.3Disseminatesustainabilityknowledgesustainability-relateddisclosures.Themetricsusedtoacrosstheorganisationanditsretentionmeasuretheorganisation’sowncontinualimprovementinTrainingcompletedandbeingusedsustainabilityreportingandprogresstowardsmeetingStaffturnoverofthosewithsustainability-relatedthosetargetsshouldbedisclosedtohelpprimaryusersappreciateitscontinualefforttoimprovethequalityofitscapabilitiesreportedinformation.8.2.4IntegratesustainabilityindiscussionsTheconsiderationformetricsandtargetsusedinacrosstheorganisationassessingsuchprogresscouldinclude:Theavailabilityandeaseofaccesstosustainability-8.2.1QualityofdataovertimerelateddataacrosstheorganisationWhethersustainabilityreportingcontentisusedReduceduseofunduecostandeffort–egprogressonproxyversusdirectmeasurementalongsidefinancialinformationfordecision-makingReducedadjustmentsforerrorsProgressonintegrationofprocessesandsystems8.2.2Stakeholders’feedbackonvalueofsustainability-relatedinformationEmployeeengagementonorganisation’ssustainabilitystrategyanditsreportingFeedbackfromorganisation’sboards/committeesonhowusefultheinformationhasbeeninaidingdecision-makingFeedbackfromexternalauditorsonintegrationinreporting–eganticipatedeffectsofclimate-relatedrisksontheorganisation’scashflows,financialpositionandfinancialperformanceFeedbackfromprimaryusersandinvestorratingagenciesonhowusefultheinformationhasbeeninaidingtheiranalysisanddecision-making(SeeBox8.1)90SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONGLOSSARYGlossaryTermsdefinedintheGlossaryareinitalicsthefirsttimetheyappearinthisguide.TermDescriptionSourceBuildingblocksapproachAdaptedfromIFAC2021The‘buildingblocks’approachenablesorganisationstouseaglobalbaselineofrequirementstoprovidesustainability-relatedinformationthatismaterialtoinvestors,withtheflexibilityforregionaland/ornational‘buildingblocks’tobeaddedwhennecessarytomeettheinformationneedsofotherstakeholders.ComponentofA‘component’maybeasubsidiary,anoperatingsegment,abusinessunit,aanorganisationdepartment,orabusinessactivity.Definingwhatconstitutesacomponentdependsonhowtheorganisationisstructuredandmanaged.Forexample,componentscouldbethosepartsoftheorganisationthatpreparefinancialinformationforinclusionintheconsolidatedfinancialstatements.CFOChieffinancialofficerCOSOCommitteeofSponsoringOrganizationsoftheTreadwayCommissionCSRDCorporateSustainabilityReportingDirectiveDoublematerialityDoublemateriality,inthecontextofESRS,hastwodimensions,namely:impactESRS1,paragraphs21,materialityandfinancialmateriality.Asustainabilitymatterismaterialwhenitmeets28,and37thecriteriaforimpactmaterialityorfinancialmateriality,orboth.Impactmaterialityandfinancialmaterialityassessmentsareinterrelatedandtheinterdependenciesbetweenthesetwodimensionsshallbeconsidered.ESRSrequiresanorganisationtoassessthematerialityofsustainabilitymattersbasedonthedoublematerialityprinciple.AppendixA:SampleworksheetforIFRSS1Generalrequirementsfordisclosureofsustainability-relatedfinancialinformationDynamicmaterialityAprocessinwhichwhatisimmaterialtoanorganisationtodaycanbecomematerialAdaptedfromWEFtomorrowandBCG2020Disclaimer:ThissampleworksheetcallsoutsomeofthekeyrequirementsofIFRSS1.ItdoesnotcontainalltherequirementsinthestandardanddoesnotsubstitutereadingalltheISSBStandards.ERPEnterpriseresourceplanningRefObjectiveRequiredinformationDiscloseinformationabouttheorganisation'ssustainability-relatedrisksandInformationabouttheSRROsthatcouldreasonablybeexpectedtoaffecttheorganisation'scashflows,itsaccesstofinanceorcostofopportunities(SRROs)thatisusefultoprimaryusersofgeneralpurposecapitalovertheshort,mediumorlongterm.ForthepurposesofIFRSS1,theserisksandopportunitiesarecollectivelyreferredtoas-financialreports('primaryusers')inmakingdecisionsrelatingtoproviding‘SRROsthatcouldreasonablybeexpectedtoaffecttheorganisation’sprospects’.resourcestotheorganisation.91GOVERNANCEGovernanceprocesses,controlsandprocedurestheorganisationusestomonitorandmanageSRROs.SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONGLOSSARYTermDescriptionSourceESGESRSEnvironmental,socialandcorporategovernanceAdaptedfromIFRSS1,ESRS1AppendixA(ISSB2023a)EUEuropeanSustainabilityReportingStandardsGeneralpurposeAdaptedfromIFRSS2,financialreportsESRS1GeneralRequirementsAppendixA(ISSB2023b)GreenhousegasEuropeanUnion(GHG)emissionsReportsthatprovidefinancialinformationaboutareportingentitythatisusefultoIEAprimaryusersinmakingdecisionsrelatingtoprovidingresourcestotheentity.Generalpurposefinancialreportsinclude–butarenotrestrictedto–anentity’sgeneralpurposefinancialstatementsandsustainability-relatedfinancialdisclosures.Thesecomprisethesevengreenhousegases(GHG)listedintheKyotoProtocol:carbondioxide(CO2),methane(CH4),nitrousoxide(N2O),hydrofluorocarbons(HFCs),nitrogentrifluoride(NF3),perfluorocarbons(PFCs)andsulphurhexafluoride(SF6).Theyarecategorisedaccordingtothesourceofemissions.Scope1greenhousegasemissions.DirectGHGemissionsthatoccurfromsourcesthatareownedorcontrolledbyanorganisation.Scope2greenhousegasemissions.IndirectGHGemissionsfromthegenerationofpurchasedoracquiredelectricity,steam,heatingorcoolingconsumedbytheorganisation.Purchasedandacquiredelectricityiselectricitythatispurchasedorotherwisebroughtintoanorganisation’sboundary.Scope2GHGemissionsphysicallyoccuratthefacilitywhereelectricityisgenerated.Scope3greenhousegasemissions.IndirectGHGemissions(notincludedinScope2GHGemissions)thatoccurinthevaluechainofanorganisation,includingbothupstreamanddownstreamemissions.Scope3GHGemissionsincludetheScope3categoriesintheGreenhouseGasProtocolCorporateValueChain(Scope3)AccountingandReportingStandard(GreenhouseGasProtocol2011).IndirectGHGemissionsrefertoemissionsthatareaconsequenceoftheactivitiesofanorganisation,butoccuratsourcesownedorcontrolledbyanotherorganisation.InternationalEnergyAgency92SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONGLOSSARYIESBATermDescriptionSourceIESBACodeIFRSS1InternationalEthicsStandardsBoardforAccountantsIntegrativeThinking:theIFRSS2GuidetoBecomingaInternationalCodeofEthicsforProfessionalAccountants(includingInternationalValue-addingCFOIntegrativethinkingIndependenceStandards)(IESBA2018)(Machado,Chenetal.2023)IFRSS1GeneralRequirementsforDisclosureofSustainability-relatedFinancialIntegrativeThinking:theInformation(ISSB2023a)GuidetoBecomingaValue-addingCFOIFRSS2Climate-relatedDisclosures(ISSB2023b)(Machado,Chenetal.2023)GettogripswiththesixThethinkingandactionbyindividualsthatwillleadtointegratedthinkingatthecapitals(IFRSFoundationorganisationlevel.Suchthinkingrequirespersonalandinterpersonalcapabilities,a2023c)setofskills,behavioursandmindsetsrelatingto:93continuallybecomingexploringco-creatingempathisingempowering.IntegratedthinkingThethinkingandactionbycollectionsofpeople,thereforeincludingteamsandorganisations.Integratedsustainability-relatedInformationwithqualitiesthatdemonstratestheinterconnectedness,andfinancialinterrelationshipsandinterdependenciesbetweenthesixcapitals(human,natural,informationintellectual,financial,manufactured,socialandrelationship)IOSCOInternationalOrganizationofSecuritiesCommissionsIPCCIntergovernmentalPanelonClimateChangeISA200ISA200OverallObjectivesoftheIndependentAuditorandTheConductofanAuditinaccordancewithInternationalStandardsonAuditingSUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONGLOSSARYTermDescriptionSourceISSBTheInternationalSustainabilityStandardsBoard,whichhassetoutfourkeyIFRSS1,paragraphs18,B14objectives:ISSBStandardsAdaptedfromIFRSS1,todevelopstandardsforaglobalbaselineofsustainabilitydisclosuresAppendixA(ISSB2023a)Materialitytomeettheinformationneedsofinvestorstoenablecompaniestoprovidecomprehensivesustainabilityinformationto94NFRDglobalcapitalmarkets,andOtherusersoftofacilitateinteroperabilitywithdisclosuresthatarejurisdiction-specificand/orsustainability-relatedinformation(otherusers)aimedatbroaderstakeholdergroups.PrimaryusersofgeneralCollectivelyreferstotheIFRSSustainabilityDisclosureStandards,ieIFRSS1andpurposefinancialIFRSS2reports(primaryusers)Informationismaterial,inthecontextofsustainability-relatedfinancialdisclosures,ifomitting,misstatingorobscuringthatinformationcouldreasonablybeexpectedtoinfluencedecisionsthatprimaryusersofgeneralpurposefinancialreportsmakeonthebasisofthosereports,whichincludetheorganisation’sfinancialstatementsandsustainability-relatedfinancialdisclosures.Thedecisionsofprimaryusersrelatetoprovidingresourcestotheorganisation.Therefore,informationaboutanSRROismaterialifitcouldreasonablybeexpectedtoaffecttheorganisation’scashflows,itsaccesstofinance,orcostofcapitalovertheshort,mediumorlongterm.Non-FinancialReportingDirectiveTheyareusersofsustainability-relatedinformationotherthanprimaryusersofgeneralpurposefinancialreports.Forexample:individualsfromwithintheorganisation(internalstakeholders),suchasthoseinriskmanagement,finance,humanresources,technology,andoperationalfunctionsincludingthesupplychainmanagementfunction.individualsexternaltotheorganisation(externalstakeholders),suchaskeysuppliersandcustomersinthevaluechain,andregulators.Theyareexistingandpotentialinvestors,lendersandothercreditorsofanorganisation.SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONGLOSSARYTermDescriptionSourceSeniormanagementAdaptedfromISA200,SMETheperson(s)withexecutiveresponsibilityfortheconductoftheorganisation’sparagraph13(a)SRROsoperations.Managementmayincludesomeorallofthosechargedwithgovernance,SRROsthatcouldreasonablyoranowner-manager.IFRSS1,paragraph3beexpectedtoaffecttheorganisation’sprospectsSmallandmedium-sizedentityAdaptedfromISA200,TCFDparagraph13(o)ThosechargedwithSustainability-relatedrisksandopportunitiesgovernanceIFRSS1,AppendixAUNSDGsTheseareSRROsthatcouldreasonablybeexpectedtoaffecttheorganisation’scashflows,itsaccesstofinanceorcostofcapitalovertheshort,mediumorlongterm.IFRSS1,paragraphsValuechainD21–D22TaskForceonClimate-relatedFinancialDisclosuresVerifiabilityTheperson(s)orbodywithresponsibilityforoverseeingthestrategicdirectionoftheorganisationandobligationsrelatedtoitsaccountability.Thisincludesoversightofitsfinancialandsustainabilityreportingprocess.Thosechargedwithgovernancemayincludemanagementpersonnel,oranowner-manager.UnitedNationsSustainableDevelopmentGoalsThefullrangeofinteractions,resourcesandrelationshipsrelatedtoareportingentity’sbusinessmodelandtheexternalenvironmentinwhichitoperates.Avaluechainencompassestheinteractions,resourcesandrelationshipsanentityusesanddependsontocreateitsproductsorservicesfromconceptiontodelivery,consumptionandend-of-life,includinginteractions,resourcesandrelationshipsintheentity’soperations,suchashumanresources;thosealongitssupply,marketinganddistributionchannels,suchasmaterialsandservicesourcing,andproductandservicesaleanddelivery;andthefinancing,geographical,geopoliticalandregulatoryenvironmentsinwhichtheentityoperates.Variousknowledgeableandindependentobserverscouldreachconsensus,althoughnotnecessarilycompleteagreement,thataparticulardepictionisafaithfulrepresentation.Informationisverifiableifitispossibletocorroborateeithertheinformationitselfortheinputsusedtoderiveit.95(e)Resilienceoftheorganisation'sstrategyanditsbusinessmodeltothoseSRROs.[IFRSS1,paragraphs41-42]RISKMANAGEMENT(a)Processesandrelatedpoliciesusedtoidentify,assess,prioritiseandmonitorsustainability-relatedrisks.(b)Processesusedtoidentify,assess,prioritiseandmonitorsustainability-relatedopportunities.SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONAPPENDICES(c)Extenttowhich,andhow,theprocessesin(a)and(b)areintegratedintoandinformtheorganisation'soverallriskmanagementprocess.(a)Enableunderstandingoftheorganisation'sprocessestoidentify,assess,AppendicesprioritiseandmonitorSRROs,includingwhetherandhowthoseprocessesareIIIintegratedintoandinformtheorganisation'soverallriskmanagementprocess(b)Enableassessmentoftheorganisation'soverallriskprofileanditsoverallriskmanagementprocessAppendiMxETAR:ICISFARNSDSTA1RGsEaTmSpleworksheetForeachSRRO,ThissamplEenwabolerkusnhdeersettanisdiangvaoifltahbeloergfaonrisdatoiown'nslpoearfdormatanhctetpinsr:e/l/awtiownwto.aitcscSaRgRlOosb,a((lab.c))ommmeett/rriisccusssruetsaqeuidnirtaeodbmbileyitaaysn-urraeeppapnloicdratmbinloegnIiS-togSruBthiSdatteaSn.RdaRrOd;anditsperformanceinrelationtothatSRRO,includingprogresstowardsanytargetsandIVincludingprogresstowardsanytargetstheorganisationhasset,andanytargetsitisrequiredtomeetbylaworregulation.Disclaimer(:a)theorganisationhasset;andThissampl(eb)wthoerokrsghaeniesatticoanlilssroequutirseodmtoemeoefttbhyelakweoyrrreegquulaitrioenm.entsofIFRSS1.ItdoesnotcontainalltherequirementsinthestandardanddoesnotsubstitutereadingalltheISSBStandards.I.GOVERNANCENo.AreasfordisclosureReferenceDisclosureAboutthegovernancebody(ies)IFRSS1,paragraph27(a)IdentifypartiesresponsibleforoversightofSRROs.1Thiscouldincludegovernancebodies(e.g.,board,committeeorequivalentbodychargedwithgovernance),orspecificindividual(s)withintheorganisation.Describetheresponsibilitiesofthepartiesidentifiedin(a)andwheretheresponsibilitiesforSRROareIFRSS1,reflected.paragraph27(a)(i)2ThiscouldbeexpandedfromtheResponsibilityAssignmentMatrix(orRACIchart).Responsibilitiesaretypicallydescribedanddetailedintermsofreference,mandates,roledescriptions,andotherrelatedpolicies.Describehowthepartiesidentifiedin(1)determinewhetherappropriateskillsandcompetenciesareIFRSS1,3availableorwillbedevelopedtooverseestrategiesdesignedtorespondtoSRROs.paragraph27(a)(ii)Explainhowandhowoftenthosein(1)areinformedabouttheorganisation’sSRROs.IFRSS1,4paragraph27(a)(iii)Explainhowthosein(1)considerSRROswhenoverseeingtheorganisation’sstrategy,decisionsonIFRSS1,5majortransactions,anditsriskmanagementprocessandrelatedpolicies,includingwhethertheyhadparagraph27(a)(iv)consideredthetrade-offsassociatedwiththoseSRROs.Explainhowthosein(1)overseethesettingoftargetsrelatedtoSRROs,andmonitorsprogresstowardsIFRSS1,6thosetargets,includingwhetherandhowrelatedperformancemetricsareincludedinremunerationparagraph27(a)(v)policies.AboutmanagementIFRSS1,Describemanagement'sroleinthegovernanceprocesses,controlsandproceduresusedtomonitor,paragraph27(b)manageandoverseeSRROs.Includeinformationabout:7(a)whethertheroleisdelegatedtoaspecificmanagement-levelpositionormanagement-levelcommittee(b)howoversightisexercisedover(a)(c)whethermanagementusescontrolsandprocedurestosupportoversightofSRROs(d)how(c)isintegratedwithotherinternalfunctionsII.STRATEGY96SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONAPPENDICESAppendixB:SampleworksheetforIFRSS2Climate-relatedDisclosuresAppendixB:IFRSS2sampleworksheetThissamDpislcelawimoerrk:shTheiestsaismapvleawilaorbklsehefeotrcdalolswonutlosoamdeaotfhthtetpkse:y//rewqwuiwre.macenctasgolfoIFbRaSl.cSo2m.It/dsouesstaniontacboniltiatiyn-arellpthoerrteinqugi-regmueidntes.inthestandardanddoesnotsubstitutereadingalltheISSBStandards.Disclaimer:ObjectiveRequiredinformationDiscloseinformationaboutanorganisation'sclimate-relatedrisksandopportunities(CRROs)thatisusefultoprimaryInformationabouttheCRROsthatcouldreasonablybeexpectedtoaffecttheorganisation’scashflows,itsaccesstofinanceorcostofThissamuspelresowfogernkesrhalepeutrpcoasellsfinoanuctiaslorempoertsoifntmhaekinkgeyderceisqiounsirreemlateinngttsoporfovIFidRinSgrSes2o.uIrtcedsotoetshenoortgacnoisnattiaonin.allthceaprietaqlouvierertmheesnhotsrt,inmetdhiuemstoarnlodngatredrma.nFdordthoeepsurnpoostessuofbIFsRtiStuSt2e,trheeasedriinskgsaanlldtohpepoIrStuSnBitieSstaarnedcoallredctsiv.elyreferredtoas‘CRROsthatcouldreasonablybeexpectedtoaffecttheorganisation’sprospects’1DescribeCRROsthatcouldreasonablybeexpectedtoaffecttheorganisation'sprospects,andmapthemtotheappropriatetimehorizons[IFRSS2,paragraphs10-12,and15-21]Informationshouldenableprimaryuserstounderstand:CurrentreportingperiodShortterm(definethisandexplainhodecisioClimate-relatedrisksandPhysicalrisk/EffectsonfinancialEffectsonfinancialSignificantriskofaAnticipatedAnticipatedopportunities(CRROs)thatcouldTransitionrisk?materialadjustmentreasonablybeexpectedtoaffecttheDescriptionEffectsoncashflowsperformancepositioneffectsonaccesseffectstocostoftothecarryingorganisation’sprospectsamountsofassetstofinancecapitalandliabilitiesinthenextannualreportingperiod?Ref:N11RiskA2RiskB3RiskC4OpportunityA5OpportunityB6OpportunityCa)Usequantitative(asingleamountorarange)andqualitativeinformationtoexplainInpreparingtheanticipatedfinancialeffectsofCRROs,anorganisationshould:b)Usereasonableandsupportableinformationthatisavailableatthereportingdatewithoutunduecostoreffortc)Useanapproachthatiscommensuratewiththeskills,capabilitiesandresourcesthatareavailabletotheorganisationtopreparethoseN1WhenidentifyingCRROsthatcouldreasonablybeexpectedtoaffecttheorganisation’sprospects,consider:[IFRSS2,paragraph11]Availablewithoutunduecostoreffort?SourceIstheinformationreasonableandsupportable?Availableatreportingdate?PasteventsCurrentconditionsForecastoffutureconditionsIndustry-baseddisclosuretopicsintheIndustry-basedGuidanceonImplementingIFRSS2[seealsoAppendixAonsourcesofguidance]ReflectuponstrategytomanageCRROs,takingintoconsideration:N2(a)investmentanddisposalplansincludingplansnotcontractuallycommittedto;and(b)plannedsourcesoffundingtoimplementstrategyN3ReflectuponstrategytomanageCRROs(eg,changestorevenue,expensesandcostsfromclimate-relatedphysicaldamages)2Disclosetheorganisation'sstrategyformanagingCRROs[IFRSS2,paragraphs13-14,22-23and33-37]97SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONAPPENDICESAppendixC:CapabilitiesThefollowingarethecapabilitiesdeemedtoberequiredbyprofessionalsundertakingsustainabilityreporting.Manyofthesecapabilitieswillbeequallyrelevanttoprofessionalsworkinginothersustainability-relatedroles,includingsettingandimplementingstrategy,andriskmanagementandassurance.Thelistisnotexhaustivebecauseassustainabilitymattersevolvesowillthecapabilitiesrequiredtomanagethesematters.SustainabilityExpertiseInsightEthicsDriveCollaborationDigitalACCACareerApplyingintegrativeThefunctionalThinkingandActinginaccordanceYourattitudeandInteractingwithProficientlyandtoorganisation'splanNniangvihgoartizoornsfeorvsetnrategiceeAppendixA)capabilitiesMtheindikuinmgtearnmd(adcetfiionentthoisanderxepslapinonhsoiwbiilti'tsielisnkoefdytoouorrganisaotpioenr'satpilnagnnaintgahnorizonforstratwegitichfuLnodnagmteernmta(ldefinethisamndoetxivpalatiionnh:obweiti'nsglinkedtoorgaonthiseartiso:ne'snpglaangniningghorizonforesttrhaitceagliclyusingexistingcreate,protectandrdoelcei:sidorna-mwiankgingup-oseneAppendixinAd)ividuallevelinyourprinciplesofdetermdeicniesidon,-making-seeApepeffnedcixtivAe)lywithandemergingdatacommunicateyourknowledgeandorganisationalprofessionalandmotivatingandinternalandexternaltechnologies,long-termvalueforexperience,applyingcontext:accuratelypersonalethicaldevelopingyourselfstakeholders,capabilities,practicesatedAnticipatedAnticipatedtheAonrtigcaipnaisteadtion,AnticipaytoedurtechnAicnatlicipatedaAnnatilcyispinagtedinformatAionnti,cipatedbehavioAunr,tiecnipsautreindgAnatincdipoattehderstoacAhnietivceip,atedcommAunntiicciaptaintegdAnticaipnadtesdtrategies–tooneffectsoncasheffectsoneefnfevcirtosnomneanccteasnsdeffectstoceoxspteorftisetoeftfheectsonefgfeecntseroanticnagshnewideeaffse,ctsontheueseffeocftsonaccesseffectsstrteotchoisntgofgoalse,ffectsoncleaerflyfe,cbtseionngcinaschlusiveeffecetnsaobnlefinanceteamsositionfinancialfinancialappropritaotefineathncicealfinatnociraelconfigurehowflowsperformancesoctieotfyi.nancecapitamlatterifninhaanncdialinpositionmafklionwgsclearperformancebcaepinitgalcuriousfinaanndcialpositioanndinflufelonwcsingperformanceordertobenefityourdecisions,organisingframeworksandopentonewimpactfully.theyworktogetherorganisation.work,focusingonkeycompliancewithlawsapproaches,andandshareN3N3N2priorNit3iesandN3andregulations.actingwithintegrityN.2N3Nin3formation.achievingtimelyresults.ExamplesofSustainabilityAdvisoryandBusinessacumen–Policycompliance–Authenticity–BuildsCommunication–Stakeholdersomeoftheknowledge–consultancy–UnderstandsandWorkswithinthetrustedrelationships,Communicatesclearlyapplication–Usessustainability-UnderstandswhatDevelopsinsightintorespondstointernalorganisational,isreliable,actswithandwithconfidence,andadoptsrelevantsustainabilitymeansbothinternalandandexternaldrivers,regulatoryandintegrityandinasimplifiescomplexity,technologyanddatacapabilitiesfortheorganisationexternalclients’maintainsalegislativemannerthatispresentsargumentsforthebenefitofwithintheandisawareoftheorganisationalissuescommercialmindsetrequirementsinplaceappropriateforalogicallyandconciselystakeholders.CareerstandardsandandprovidesexpertanddevelopsfortheroleandprofessionalandpresentsNavigatorreportingframeworksadvicetoaddvalue.opportunitiesforjurisdiction.accountant,informationusingDesignthinking–forsustainableSupportsclients’growth.promotingtrustintheappropriateAppliestheconceptsdevelopment,objectivesandplansEthicalcodeprofession.technologies.ofuserexperience,includingUNSDGs.toimprove,innovateCriticalthinking–compliance–Worksuserinterfaceandandgrowsustainably.DealswithinformationwithinthecodeandLeadership–SetsPartnerships–design.ESGmetrics–IdentifiesefficienciesanddataandgetstounderstandsthedirectionandPartnersandinteractsEnvironmental,Socialandrespondstotheheartoftheconsequencesofencouragesotherswithothers,workinginBusinessmodelfocusandGovernancechangingmatterinordertoethicalandunethicaltowardstheteamsandwitha–Relatesthebusinessmetricsmattertomyenvironments.makeclear,conduct.achievementoftherangeofinternalandmodeltothedataorganisationtohelpitevidence-basedorganisation’sgoals.externalstakeholders,modelanddeliveritsstrategy.decisionsthatmoveDilemmasmitigationinordertobuildandunderstandsthedataissuesforward.–IdentifiesandChangeorientation–maintainfruitfulflowswithinanSustainabilityevaluatesthreatstoQuestionsexistingrelationships.organisation.analysis–Compilefundamentalethicalpractices,adoptsnewandanalysekeyprinciplesandapproaches,adjustsRiskmanagement–financialandimplementstochangingControlsandrelatednon-financialdataappropriatecircumstancesandmonitoringsafeguards.respondspositivelytotechnologies.newideas.98SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONAPPENDICESExamplesofSustainabilityExpertiseInsightEthicsDriveCollaborationDigitalsomeofthesustainability-SustainabilityroleofAuditandassuranceGovernanceandEthicalmindset–Determination–Inclusion–RespectsCurrency–Currencyrelevantprofession––Provideshigh-control–EnsuresthatDevelopsanethicalInitiatesanddrivesdifferentviewsandwiththetechnologycapabilitiesUnderstandsthequalityworkbythestructureofrules,mindsetandthingsforward,followsopinions;recognises,relevanttothewithintheprofession'sroleinevaluatinginformationpracticesandconsistentlythroughandgetsappreciatesandorganisation.Careermakingapositivesystemsandinternalprocessesusedtodemonstratesthingsdone,isvaluesdiversityandNavigatorcontributionto,andcontrols,gatheringdirectandmanageprofessionalskillsandresilient,setsactsinaninclusiveCommunicationtools(continued)impacton,sustainableevidenceandtheorganisationareatethicalvalues.ambitioustargetsandmanner.–Usesawiderangeofvaluecreation.performingthehighestlevels.achievesexcellence.modernprocedurestomeetAwarenessraising–Inﬂuences–OfferscommunicationSolutionstheobjectivesofauditInnovation–LooksConfidentinraisingLifelonglearning–adviceandinsights,technologiesanddevelopment–andavarietyoffornewandbetterconcernsandconflictsManagestheirownengagesothersplatformstointeractIdentifiesandassurancewaysofdoingthings,ofinterestandknowsandothers'throughpersuasion,andcollaborate,volunteerspotentialengagements.generatesnewideashowtoescalateissuesdevelopment,achievescommonconstructandopportunitiesforforchangeandappropriately.coachingandground,resolvesinterpretsustainablepractice.Financialimprovementandismentoringothers,potentialconflictsandstraightforwardManagement–opentoalternativeGuardian–Actsasatakingresponsibilitygainssupportforfinancialmodels,bothCareforresources–Implementseffectivewaysofworking.guardianagainstfraudforlearningandproposals.historicalandforwardWorkswithothersinainvestmentandandillicitfinancialcontinuallyimprovinglooking.safeandsustainablefinancingdecisionsPlanningandprojectflows.anddevelopingStakeholderfocus–mannerandseekstowithinthebusinessmanagement–professionalskills,ListenstointernalandAnalysis–UsesreducetheenvironmentinareasUndertakesprojects,Publicinterest–Actsknowledgeandexternalstakeholders,appropriatetools,consumptionofsuchasinvestmentschedulesactivities,inthepublicinterestexperience.understandscustomermethods,modelsandresources.appraisal,businessorganisesandandpromotestrustinrequirementsbytechnologiestoreorganisations,taxprioritisestasksandtheprofession.focusingontheiranalyse,interpret,andriskmanagement,monitorsprogresstoneeds,solicitsandevaluateandtreasuryandworkingachieveobjectivesinaactsuponfeedbackcommunicatedata.capitalmanagement,timelymanner.andprovidesatoensurevaluepositiveexperience.Insights–Providescreation.insightsandsupportssounddecision-PerformancemakingbyeffectivelyManagement–usingandoptimisingDeliversfinancialprocessesandinformation,tools,technology.analysisandinsightacrosstheorganisation;assesses,evaluatesandimplementsmanagementaccountingandperformancemanagementsystems.99SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONAPPENDICESSustainabilityExpertiseInsightEthicsDriveCollaborationDigitalExamplesofFinancialandsomeofthebusinessreporting–sustainability-Preparesandrelevantcommunicatescapabilitieshigh-qualitybusinesswithinthereportstosupportCareerstakeholderNavigatorunderstandingand(continued)decision-making.RiskManagement–Ensureseffectiveandappropriategovernance,allowsevaluation,monitorsandimplementsappropriaterisk-identificationprocedures;bydesigningandimplementingrisk,internalauditandcontrolsystems.Taxation–Complieswithtaxregulationandsystems,communicateswithrelevantstakeholderstoestablishandethicallymanagetaxliabilitiesforindividualsandcompanies,usingappropriatetaxcomputationandplanningtechniques.100SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONAPPENDICESCapabilitiesSustainabilityExpertiseInsightEthicsDriveCollaborationDigitalexplicitlyidentiﬁedviathisMulti-capitalsProductlife-cycle/InterconnectedGreenwashingriskWorkingattheConﬂictDatacollectionandresearchwherethinking–Thinksvaluechainsystemicthinking–management–margins–capableofmanagement–analysisapproachessomecapabilitiesacrossthevariousassessment–ThinkingiscapableofIdentifiesanditerativeandIdentifies,tosupportwerealsoresourcestheIdentifiesandanalysesappreciatingthemanagesriskspiecemealworking,understandsandcansustainability-relatedidentiﬁedinorganisationaffectsthevaluechainforinterconnectedness,associatedwiththewithagilityandmanagepositiveanddataalignmenttoACCA'srelatedanddependsupon,managementanddynamicrelationshipsdisclosureofadaptability,andmaynegativeconflict.ﬁnancialdataworkonegfinancial,economicexternalreporting(feedbackloops),misleadingincludesettingandqualities–Developsintegrativeandbusinessacumen,includingtriggersforcausesandassociatedsustainability-relatedworkingwithinMulti-stakeholderapproachesthatseekthinking.intellectual,reputationwhenare-reviewiseffects,combinesinformationinreportsparametersforawareness–todrivequalityofManyoftheseandbrand,naturalrequiredforchangesdifferentideasforandotherformsoftolerableerror,Appreciatesandsustainability-relatedcapabilitiesareresources,inthevaluechainorsomethingneworcommunication.reasonableandbalancestheneedsofinformation,egtoincludedwithinmanufacturedboundary.extra(sometimesthesupportablemultiplestakeholders.reflectitsmultipletheCareerresources,humanwholeisgreaterthanEthicalcodejudgement.uses,sourcesandNavigatorresources.Multipleformsofthesumofitsparts).champion–Maintainingtypesofdata,hencemateriality–WorksEncouragestheuseofReportwithcomparativeconsiderationsontheCurrencywithpolicywithmultipleformsofMulti-timeframetheIESBACodebyconﬁdenceandadvantage–Capablelevelofintegrity,andregulation–materiality,egdouble,thinking–Thinksothersnotrequiredtocourage–Decidesofengaginginsharedformat,etc.Keepsabreastofthefinancial,impact,acrossdifferenttimecomply,inordertowhentostart,andlearningforindividualmultipleregulationsdynamic.frames,egforwardbetterservethepublichowespeciallywhenandmutualbenefitLeveragingandpolicyonlookingtotheinterest.voluntaryoronlywithoutdivulgingproprietaryandsustainabilityNewresourcingmediumandlongerrequiredforspecificcommerciallysensitivepubliclyavailablereportingmodels–Considerstermratherthanthepurposes,egvalueinformation.data–Abletouserequirementsrelevantdifferentmodelsforshorterterm.chainand/orwhenbothformsofdatatotheirwork.accesstosustainabilitythereportingwhileensuringknowledge,riskandMultipleframeworksrequirementsarequalitiesofgooddataFinancialandlearningexpertise.application–immature.governanceandsustainability-relatedDevelopsframeworksconfidentialityareinformationBoundaryforandappliesmultipleSelf-awarewithamaintained.integration–reportinganditsframeworks.viewtogrowing–Appreciatesandcanvaluechain–Hascopingskills,workwithfinancialAppreciatestheExtendedandopenhumility,recognisingandnon-financialdifferentboundary,thinking–Capableofownbiases,relatingtoinformationthatandinturnvalueinitialfree,systemicownexperiences.typicallyhasdifferentchain,implications.and360-degreedataqualities,egthinkingbeforeContinualsustainabilityBasetechnicalputtinginplacedevelopment–reportingconsidersknowledgeforkeylimitations.Willingtoembracetheapproachtoenvironmentalandchange,adding-valuesustainablebusinesssocialtopics–HasWorkingwithmindset,reflecting,strategyandtheappropriatebaseprecedents–self-awareofgaps,implementationasknowledge,egGHGCapableofsettingeagertodiscover,wellasprogressemissions,humanandupdatingalwayslearning.(performanceandrights,humancapital,precedentsastheposition).biodiversity,sustainabilityecosystemsandenvironmentevolves.ecosystemservices.101SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONAPPENDICESSustainabilityExpertiseInsightEthicsDriveCollaborationDigitalCapabilitiesTaxasaforceforFinancialandexplicitlygoodinbusinessandnon-ﬁnancialcostvs.identiﬁedviathisreporting–beneﬁtoftakingresearchwhereRecognisestheactionmindset–somecapabilitiesbehaviouralimpactofEnsuresafairbalancewerealsotaxincentivesandbetweenfinancialandidentiﬁedinpenaltiesandwhatnon-financialbenefitsACCA'srelatedthismightmeanforandcosts.workonreporting.integrativeBeyondathinking.complianceattitudeManyofthese–ValuestherationalecapabilitiesareforsustainabilityincludedwithinreportingandseekingtheCareertoaddvaluetotheNavigatororganisation.(continued)102(iv)industry'stypicalplanninghorizonforcapitalallocationplans(v)primaryusers'typicaltimehorizontoconductassessmentsoforganisationsinthatindustrySUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONACKNOWLEDGEMENTSAcknowledgementsTerenceLJeyaretnam,AustraliaJulienTyack,MauritiusJaneWalde,UKShadabSakibMostafa,BangladeshBirajPradhan,NepalJessicaBingham,UKAtifPervez,CanadaMilenaOlszewska-Miszuris,PolandJuliaGraham,UKBhavnaDuggal,CanadaEwaldMuller,QatarKatherineAnnByam,UKGuangwuSun,MainlandChinaCristinaGutu,RomaniaandMoldovaLauraKelly,UKJuntaoGao,MainlandChinaYenSanChan,SingaporeLilyMalone,UKPollyLian,MainlandChinaPrashaniIllangasekera,SriLankaMatthewBell,UKXiaohuiGuan,MainlandChinaThomasEgan,SwitzerlandRebeccaPrestwood,UKYukiQian,MainlandChinaOxanaLosevskaya,UAERebeccaPridham,UKKwabenaAntwiSitu,GhanaAlisonFordyce,UKSoniaShah,UKPanosValantassis,GreeceAlistairBrisbourne,UKSteveBailey,UKRickyCheng,HongKongSARCecileParker,UKSusanAllan,UKSarahLane,IrelandCliveWebb,UKYen-peiChen,UKEstherCheah,MalaysiaDaniSaghaﬁ,UKKantuHanchongo,ZambiaPangYenOng,MalaysiaEmmaGripton,UKYandeMwenye,ZambiaSaravananDesigamanie,MalaysiaFarahAnwar,UK103(c)strategytorespondtoCRROsinitsstrategyanddecision-toitsbusinessmodelmitigationandadaptationmitigationandresourcing,andplanspreviousreportingb)industry-basedmetricstoaddressCRROs.effortsadaptationeffortstoresourcetheperiods-useassociatedwithdisclosuretopicsmaking.activitiesdisclosed.quantitativeanddefinedintheIndustry-basedGuidancequalitativeinformationonb)Howtheorganisationplanstoachievetheclimate-ImplementingIFRSS2[seeIFRSS2,paragraph32)]SUSTAINABILITYREPORTING–THEGUIDETOrelatedtargets(eg,GHGemissions)ithasset.PRc)EHPAowRAthTeIOoNrganisatioRnEFpElaRnEsNtoCaEcShievetheclimate-(d)decisionmakingrelatedtargets(eg,GHGemissions)itisrequiredtomeetbylaworregulation.SeealsoAccompanyingGuidanceonReferences(e)climate-relatedtransitionplan[SeeIFRSS2,paragraphs33-37fordisclosingIFRSS2forillustrativeexamples.climate-relatedtargets]Describe:keyassumptionsusedindevelopingtransitionplan,anddependenciesACCA(2c0l1im8aat)e,rTeesnilieetnsceofofGitosostdraCteogyrpaondraittseGoUvseercnliamnactee-.relatedscenarioanalysAisCtoCaAss(2es0s22itsc),AccountingforaBetterWorld:PrioritiesforaACCAandCAANZ(2022a),HowSMEsCanCreateaMoreDproowfe(nfs)lsoiaobcdnluimaasiblan-liteenes-ssrfiergmolahmottedsde</lgc,hhaltoattnbpthgasee:ls/-rp/,ewpdrooewvrftweeinls.ogaspcidmocaneaten/g,ttlsetoonbeacctlosi.mm-cooamfmt-eegn/rogesosubirdla/iee-tnencw/eituhsiitnsgcairncuamppsrtoaanccTahercstach[nsaasetgfeilosoIrFbmRaSiln.cSgo2Pm,ro/gfebs/seion/np.rDoofewsnsiloonaadla-ibnlseigfrhotms/p<roh-tatpcsc:o//uwnwtawn.ts-the-SustainableWorld:SustainabilityandtheRoleofSMEs.corporataen-dgounvceerrntaainntciees.html>,accessed25Opcatroagbrearph2022]3.future/accounting-for-a-better-world.html>,accessed24OctoberDownloadablefrom<https://www.accaglobal.com/gb/en/professional-insights/global-profession/smes-create-more-2023.sustainable-world.html>,accessed23October2023.ACCA(2018b),TenetsofGoodCorporateReporting.Down3loaDdiasbclloesferoinmfo<rmhtatptiso:n//fwowrwea.acchctaagrgloebtasle.ctoomrr/egqbu/ierend/tomeet[IFRSSA2C,pCaArag(2r0a2ph3sa)3,3C-3h7ie]fValueOfficer–TheImportantEvolutionofACCAandCAANZ(2022b),HowSMEsCanCreateaMoretechnical-activities/technical-resources-search/2018/february/theCFO.Downloadablefrom<https://www.accaglobal.com/uk/SustainableWorld:APlaybookforAccountantsinPracticeandtenets-of-good-corporate-reporting.html>,accessed23Octoberen/professional-insights/global-profession/value-officer.html>,FinanceTeamsinSmallandMedium-sizedOrganisations,2023.IFRSS2requiresspecificinformationaboutclimate-relatedtargetsthatgoesbaecycoensdsethde2re3quOircetmoebnetsri2n0IF2R3.SS1.Downloadablefrom<https://www.accaglobal.com/gb/en/IforganisationsusethesampletableinAppendixAforthedisclosureoftargets[No.6ofAppendixA],organisationsneedtoaddtherequirementsinparagraphs33-3p7rooffeIFssRiSonSa2l-tiontshigehtatbsl/eg.lobal-profession/sme-suistainable-ACCA(2020),ProfessionalAccountantsChangingBusinessfortheACCA(2023b),‘DoesyourOrganisationOutsourceDataworld.html>,accessed24October2023.Planet:aGuidetoNaturalCapitalManagementforBusinessCollectionandProcessingforSustainabilityReporting?’[OnlineLead4ers.DDisocwlonsloeatdheabolregfarnoimsa<tiohntt'pssr:i/s/kwmwawn.aacgceamgelonbtafol.rcoCmRR/Os[IFRSS2,preasraugltrsaophfsLi2n4k-e2d6]Inpoll],August<https://www.linkedin.com/ACCA,CAANZandGenerationCFO(2021),Transformationalgb/en/professional-insights/global-profession/Professional_posts/acca_activity-7102222564566978560-Mx8R/?utm_source=Journeys:FinanceandtheAgileOrganisation.DownloadableaccountaTnotsa_vocihdaunngneincges_sbaurysidnuepslisc_atpiolna,niefat.nhotmrgla>n,isaactiocne'sssoevder2si4ghtofsustainabilitsyh-raelraete&durtimsks_maneddium=member_desktop>,accessed23Octoberfrom<https://www.accaglobal.com/uk/en/professional-insights/Octobero2p0p2o3rt.unities(SRROs),includingCRROs,ismanagedonanintegratedbasis,2th0e23or.ganisationtechnology/transformational-journeys.html>,accessed30October2023.shouldavoidduplicationbyprovidingintegratedriskmanagementdisclosuresinaccordancewithACCA,InstituteofInternalAuditors(IIA),andInstituteofACCA(2I0F2R1SaS),1PirnostfeeasdsioofnsaelpAarcacteoduinsctalonsutsreCshfoarnegaicnhgSBRuRsOin.e[ssesefoArppendixA]ACCA(2023c),‘DoesyourOrganisationCurrentlyReportthePlanet–ASimpleGuidetoNaturalCapitalManagementforSustainability-relatedInformation?WhereisthisDisclosed?’PerformanceManagers.Downloadablefrom<https://www.[OnlineresultsofrLeiandkeindthInispdoirellc],tioSneptember<https://www.ManagementAccountants(IMA)(2022),InternalControlandtheaccaglobDaels.ccorimbe/:uk/en/professional-insights/global-linkedin.com/posts/acca_activity-7105888676504633344-GhAy/TransformationofEntities.Downloadablefrom<https://www.profession/Professional_accountants_changing_business_?utm_source=share&utm_medium=member_desktop>,accessedaccaglobal.com/uk/en/professional-insights/technology/planet.html>,accessed20October2023.23October2023.transformation-of-internal-control.html>,accessed23OctoberExplainhowthe2023.ACCA(2021b),ProfessionalAccountantsChangingBusinessforACCA(2023d).‘DoesyourOrganisatoiorgnanCisuartrieonntalsysResespeosrttheExplainwhetherandthePlanet–ASimpleGuidetoNaturalCapitalManagementforSustainability-relaEtexpdlaIinnfworhmethaetiroann?dWnhaoturies,Rliekeslpihoonodsiabnled?[OnElinxpelainwhetherBanadboukardos,D.,Seretis,Eho.,wStlhaecko,rgRa.n,iTsasatiolanvoutas,I.andCorporatheeRperopcoerstseerssa.nDdorwelantleodapdoalibcileesftrhoem<hEtxtpplasi:n//twhewinwp.utsandparameterstrheesuorlgtsanoisfaLtiionnkedInhopwotlhl,eAourggaunsista],ti<onhttmpasg:/n/iwtuwdewo.lfinkedin.com/hpoowstthseorganisaTtsioonligkEaxsp,lFa.in(2h0o2w2t)h,eCompahnasiecsh’aRnegeadditnheesstoAdoptIFRSS2acca(gal)oboargl.acnoismat/iuonk/uesne/sptoroidfeensstiifoy,naasls-ienssi,ghts/ugsleosb(eagl-,informationaboutdataso/uarccecsa_aandcttihveity-709u4s3e1s6c8li9m4a5te9-3re1l7at1e4d56t-hpeMefHfeuct?suotfmth_ossoeurricskes=shparrieor&itisesclimatCe-limateor-greanlaistaetdionDisclosurepsr.ocDeosswensliotausdeasblefrom<https://professiopnri/oPrirtiosfeeasnsdiomnoanl_itaocrccolimunattea-nretlsa_tecdhangisncgop_ebuofsoinpeesrast_ionscoveredinthepurtomce_smseesd)ium=mesmcebnaerri_odaensaklytsoispt>o,a(cfocreesxsaemdp2le4,wOhcettohebrethre202re3l.atedrisksrelawtivwewto.acmcoangitloorbsaclli.mcoamte-/gb/ecnom/ppraorefedswsiitohntahel-insights/global-planet.htrmiskls>,accessed20October2023.identifyclimate-organisationconsidersothertypesofrispkrofessrieolante/rderaisdkisness-for-IFpRreSv-ioSu2s.hretmpolr>tin,gaccessed23OctoberACCA(2023e)AccreolautnedtinrigsksforSocietyq’usaVlitaaltuiveesf.aDctoorws,nloadable2023.periodfrom<https://www.accaglobal.com/gquba/netnita/ptivreoftehrsessiohonldasl-ionrsights/ACCA(2021c),ClimateActionandtheAccountancyProfession:global-profession/society-values.htmolt>h,eraccrciteesrisae)d24OctoberBuildingaSustainableFuture.Downloadablefrom<https://CAANZandACCA(2017),Directors’ResponsibilitiesforFinancialwww.accaglobal.com/gb/en/professional-insights/pro-2023.Reporting:WhatYouNeedtoKnow,<https://www.accaglobal.accountants-the-future/climate-action-accountancy-com/gb/en/professional-insights/global-profession/Directors-profession.html>,accessed24October2023.ACCA(n.d.a),‘SustainabilityDisclosureStandards:Videoresponsibilities-for-financial-reporting.html>,accessed19Explainers’[onlineresource]<https://www.accaglobal.com/October2023.ACCA(2021d),ProfessionalAccountantsattheHeartofsustainability-standards-videos>,accessed16October2023.SustainableOrganisations.Downloadablefrom<https://www.Chen,Y-P.andHawksley,F.(2021),InvisibleThreads:accaglobal.com/gb/en/professional-insights/pro-accountants-ACCA(n.d.b),‘GreenFinance:HaveYouGottheKnowledgeCommunicatingIntegratedThinking.Downloadablefromthe-future/pro-accountants-heart-sustainable-orgs.html>,EveryAccountantNeeds?’[registrationpageforwebinar]<https://www.accaglobal.com/gb/en/professional-insights/globalaccessed24October2023.<https://event.on24.com/wcc/r/4157259/2A530E5C65D539BB9B5-profession/Invisible-threads-communicating-integrated-think.83064FD03C707?partnerref=suspack>,accessed24Octoberhtml>,accessed30October2023.ACCA(2022a),SupplyChains:AFinanceProfessional’s2023.Perspective.Downloadablefrom<https://www.accaglobal.com/Chow,H.M.(2022),CanIntegratedThinkingbetheKeytoSMEs’gb/en/professional-insights/global-profession/supply-chains-ACCA(n.d.c),‘ACCACareerNavigator:HelpingGuideyourResilience?Downloadablefrom<https://www.accaglobal.com/post-pandemic-world.htm>,accessed20October2023.CareerJourneyEveryStepoftheWay’[websiteresource].gb/en/professional-insights/global-profession/integrated-<https://careernavigator.accaglobal.com/gb/en.html>,accessedthinking-key-SMEs-resilience.html>,accessed24October2023.ACCA(2022b),GreenBudgeting:AToolkitforPublicSector24October2023.FinanceProfessionals.Downloadablefrom<https://www.COSO(CommitteeofSponsoringOrganizationsoftheTreadwayaccaglobal.com/gb/en/professional-insights/global-profession/ACCA,CAANZ,MacquarieUniversity,andOptus(2019),CyberCommission)(2023),AchievingEffectiveInternalControloverGreen-budgeting-a-toolkit-for-public-sector-finance-andtheCFO,<https://www.accaglobal.com/uk/en/professionalSustainabilityReporting(ICSR),Downloadablefrom<https://professionals.html>,accessed24October2023.-insights/technology/cyber-and-the-cfo.html>,accessed23www.coso.org/new-icsr>,accessed23October2023.October2023.104SUSTAINABILITYREPORTING–THEGUIDETOPREPARATIONREFERENCESCristofaro,T.deandGulluscio,C.(2023),‘InSearchofDoubleIFRSFoundation(2023b),‘Connectivity–WhatisitandWhatRogdaki,M.andDiolas,A.(2023),SustainabilityAssurance–MaterialityinNon-FinancialReports:FirstEmpiricalEvidence’DoesitDeliver?’[websitearticle],23March<https://www.ifrs.org/RisingtotheChallenge.Downloadablefrom<https://www.[onlinearticle],Sustainability,15(2).Downloadablefromnews-and-events/news/2023/03/connectivity-what-is-it-and-what-accaglobal.com/uk/en/professional-insights/global-profession/<https://www.mdpi.com/2071-1050/15/2/924>,accessed20does-it-deliver>,accessed25October2023.sustainability-assurance-rising-to-challenge.html>,accessed24October2023.October2023.IFRSFoundation(2023c),‘GettoGripswiththeSixCapitals’Skelton,E.(2023),GreenFinanceSkills:theGuide.DownloadableDatamaran(2023),‘TheUltimateGuidetoESGMateriality’[websitearticle]<https://www.integratedreporting.org/what-the-from<https://www.accaglobal.com/gb/en/professional-insights/[websitearticle]<https://www.datamaran.com/materiality-tool-for-better-reporting/get-to-grips-with-the-six-capitals/>,global-profession/green-finance-skills-the-guide.html>,accesseddefinition>,accessed20October2023.accessed25October2023.24October2023.TCFD(TaskForceonClimate-relatedFinancialDisclosures)(2022),EuropeanCommission(2023a),‘QuestionsandAnswersontheIFRSFoundation(2023d),‘TheIFRSFoundationpublishesTCFD2022StatusReport,<https://assets.bbhub.io/company/AdoptionofEuropeanSustainabilityReportingStandards’[onlinecomparisonofIFRSS2withtheTCFDRecommendations’sites/60/2022/10/2022-TCFD-Status-Report.pdf>,accessed16article],31July<https://ec.europa.eu/commission/presscorner/[websitearticle]<https://www.ifrs.org/news-and-events/news/2October2023.detail/en/qanda_23_4043>,accessed16October2023.023/07/ifrs-foundation-publishes-comparison-of-ifrs-s2-with-the-Telling,O.(2023),‘MultinationalsTurntoGenerativeAItoManagetcfd-recommendations>,accessed30October2023.SupplyChains’[onlinearticle],FinancialTimes13August2023EuropeanCommission(2023b),‘CorporateSustainability<https://www.ft.com/content/b7fafed2-9d00-49b0-a281-c1002b13Reporting’[websitearticle]<https://finance.ec.europa.eu/IPCC(IntergovernmentalPanelonClimateChange)(2023),9865>,accessed13August2023.capital-markets-union-and-financial-markets/company-reporting-ClimateChange2023:SynthesisReport.DownloadablefromUnitedNations(n.d.),‘ConferenceoftheParties’[websitepage]and-auditing/company-reporting/corporate-sustainability-<https://www.ipcc.ch/report/ar6/syr//>,accessed20October<https://unfccc.int/process/bodies/supreme-bodies/conference-reporting_en>,accessed20October2023.2023.of-the-parties-cop>,accessed24October2023.WEF(WorldEconomicForum)andBCG(BostonConsultingFriedman,S.(2008),‘Roles,Responsibilities,andResources:BestISSB(TheInternationalSustainabilityStandardsBoard)(2023a),Group)(2020),EmbracingtheNewAgeofMateriality:HarnessingPracticesinManagingPeople’[websitearticle]<https://www.pmi.IFRSS1GeneralRequirementsforDisclosureofSustainability-thePaceofChangeinESG<https://www3.weforum.org/docs/org/learning/library/best-practices-managing-people-quality-relatedFinancialInformation.Downloadablefrom<https://www.WEF_Embracing_the_New_Age_of_Materiality_2020.pdf>,management-7012>,accessed19October2023.ifrs.org/issued-standards/ifrs-sustainability-standards-navigator/accessed20October2023.ifrs-s1-general-requirements/>,accessed31October2023WRI(WorldResourcesInstitute)(n.d.)‘Aqueduct:WaterRiskAtlasGRI(GlobalReportingInitiative)(n.d.),TheGRIStandards:ATool’[onlineresource]<https://www.wri.org/aqueduct>,accessedGuideforPolicymakers<https://www.globalreporting.org/ISSB(2023b),IFRSS2Climate-relatedDisclosures.Downloadable23October2023.media/nmmnwfsm/gri-policymakers-guide.pdf>,accessed24from<https://www.ifrs.org/issued-standards/ifrs-sustainability-October2023.standards-navigator/ifrs-s2-climate-related-disclosures/>,105accessed31October2023.GreenhouseGasProtocol(2004),ACorporateAccountingandReportingStandard.Downloadablefrom<https://ghgprotocol.ISSB(2023c),Industry-basedGuidan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