The Global Necessity of Transparent and High Quality Reporting and Disclosure on Sustainability Issues: with a Focus on Climate Change
The Global Necessity of Transparent and High Quality Reporting and Disclosure on Sustainability Issues: with a Focus on Climate Change

Author(s): Hristina Oreshkova
Subject(s): Politics / Political Sciences, Politics, Economy, Supranational / Global Economy, Business Economy / Management, Energy and Environmental Studies, Environmental and Energy policy
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: reporting and disclosure on sustainability; climate-related issues; Corporate Sustainability Reporting Directive
Summary/Abstract: Over the past decades, there have been strong international efforts to develop a global framework for sustainability reporting and disclosure. Significant progress has been made globally and many frameworks have been developed that focus on sustainability issues, particularly those with an inherent focus on climate change and the risks it poses. Changes in global climate patterns are recognised as one of the most pressing challenges facing humanity, and attempts have been made to respond. However, there are too many initiatives for reporting on sustainability issues and the author’s main concern remains. The proliferation of frameworks focused on sustainability reporting, including climate change issues, is vast and dynamic. Frameworks and standards are proliferating to the point of confusion. The proliferation of frameworks, recommendations and requirements based on similar but not identical principles can in turn affect and compromise the comparability of the information provided, significantly reducing its usefulness and potentially causing confusion among stakeholders (rather than reaping the potential benefits for a sustainable future). The author argues that there is still a lack of quality in the transparency, consistency and relevance of corporate governance policies, activities and information on sustainability and climate-related issues, whether provided voluntarily or through mandatory disclosure. Weaknesses and vulnerabilities at the level of corporate governance and management should be properly addressed in order to respond efficiently and effectively to the challenges. This article revolves around the author’s belief that climate-related information is an essential and key component of sustainability reporting and disclosure. Climate-related issues should always be a priority for corporate governance, given their growing importance for the effectiveness of corporate reporting practices. The author’s view and thesis is that it is paramount that climate-related disclosures are transparent, credible and relevant to the risks and potential opportunities posed by climate change, if the disclosure process is to be efficient and effective, and thus useful to all interested parties, such as creditors, lenders, employees, potential and current investors and all members of society. The author believes that humanity is in urgent need of action on climate change. With this in mind, the author aims to highlight, discuss and justify the need for a more aligned framework and consistent standards globally to support meaningful and reliable disclosure of climate-related matters, risks and opportunities. The author aims to highlight and discuss the reflections, concerns and criticisms of researchers, professionals and experts on the issues discussed.

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