München (csr-partner) > As revealed in the findings of the new global investor survey of EY, the capital markets are demanding new, more integrated approaches to corporate reporting. But the impetus for change is not coming from outside stakeholders alone. CEOs, CFOs and company directors are all beginning to recognize the potential to better demonstrate responsible business practices across the enterprise, while at the same time tapping new sources of business value.
Our Climate Change and Sustainability Services (CCaSS) practice expects more companies to begin formalizing efforts around measurable, objective and relevant nonfinancial reporting by defining criteria and measurement requirements for their nonfinancial indicators, establishing robust data management processes and making the transition to external assurance. That journey will require changes in both the content and the format of reporting, as value measures mature and companies embrace the potential of a more real-time, digital dialogue around performance.
Partnerships with organizations like GRI, IIRC and WBCSD will continue to grow in importance, as these drivers and issues are addressed across industries and geographies.
Our publication, “The road to reliable nonfinancial reporting” spotlights ways in which environmental and social disclosures are becoming standard practice for many of the world’s leading businesses.
Key questions to ask
Organizations need to assess whether their management of nonfinancial information is optimized to reliably and efficiently deliver the right information. Here are several key questions to help organizations on their journey to optimize how they manage nonfinancial information:
- Are you concerned about stranded assets, business resiliency, brand reputation or license to operate?
- Do you get sufficient business value from nonfinancial reporting?
- What is the current state of nonfinancial information management in your organization?
- What information matters most and who is most likely to use the business information that is reported publicly?
- Do investors use nonfinancial information to assess risk and the outlook for your organization?
- Are you confident that nonfinancial information governance, processes and definitions are sufficiently reliable?
- Is the finance function involved in nonfinancial information management?
- Do you use technology effectively to support credible reporting and optimize resources?
- To what extent do you plan to integrate sustainability reporting and annual (financial) reporting?
- Can you gain efficiencies by obtaining sustainability report assurance and financial auditing from the same provider?
For more information, including the challenges and key builders of nonfinancial reporting, please download the full report here.