A Canadian Response to the Pursuit of Global Sustainability Reporting Standards*

Abstract

As business, government, and society continue to emphasize the importance of sustainability—both of individual organizations and of the natural world—accounting standard‐setting bodies want to be part of the process. In September 2020, in response to “urgent and growing demand” for more “consistent and comparable” sustainability reporting, the IFRS Foundation (the Foundation) released for comment a Consultation Paper on Sustainability Reporting. In the paper, the Foundation proposed the creation of a Sustainability Standards Board (SSB), which it would oversee alongside the IASB. The SSB would become, de facto, the global sustainability reporting standard setter. The Foundation received 577 responses to its proposal. These responses came from around the world and from a wide range of stakeholders. Thirty‐eight of the responses came from Canada. This study profiles the Canadian responses, contrasting them with the wider set of worldwide responses. Some uniquely Canadian features include user responses from a large number of pension funds and preparer responses solely from the energy sector. There was also a significant response from the Canadian accounting community, including from the full set of Canadian standard‐setting organizations. Five auditors general also responded. Overall, Canadian respondents supported both globalized sustainability reporting standards and the Foundation's creation of the SSB. This support aligns Canada's response with the worldwide response.

Sustainability reporting: How consistency and interdependence in financial and managerial accounting enhance eco‐controls

“…reporting conformity with the SDGs(Elkins & Entwistle, 2022). This study clarifies the mechanism of this endeavour to ensure consistent reporting Campbell et al (2012).…”

“…The presence of multiple standard setters with different reporting frameworks and disclosure mandates complicate the tasks of those who prepare accounting information as well as those of the end users of the accounting information since these end users may not be able to easily evaluate and understand the sustainability framework (Elkins & Entwistle, 2022). To this end, accounting standard setters have identified an urgent need to bridge the gap between financial and non-financial reporting and to deliver research output for supporting their activity (Giner & Luque-Vílchez, 2022).…”

“…The study also has policy implications. A World Economic Forum (WEF) whitepaper published in 2020, (World Economic Forum, 2020) prepared in cooperation with the big four accounting firms, listed 21 core metrics designed to increase consistency in ESG disclosures and ensure reporting conformity with the SDGs (Elkins & Entwistle, 2022). This study clarifies the mechanism of this endeavour to ensure consistent reporting.…”

Sustainability reporting in corporations: A comparative review of practices in the USA and Europe

“…Voluntary initiatives, such as participation in sustainability reporting frameworks like the Global Reporting Initiative (GRI) or the Sustainability Accounting Standards Board (SASB), play a crucial role (Elkins and Entwistle, 2023). Companies opting to voluntarily disclose their ESG performance aim to differentiate themselves in the marketplace, attract ethical investors, and enhance their overall brand reputation.…”