MEDIA RELEASE (AU)

As many of Australia's largest entities publish their first climate-related disclosures, Chartered Accountants Australia and New Zealand (CA ANZ) has welcomed a new Global Accounting Alliance (GAA) report highlighting the need for stronger links between sustainability and financial reporting.

CA ANZ contributed to the development of the report, the first in the GAA's new three-part Connectivity in Reporting series, which explores how organisations can better connect financial and sustainability information to support more effective decision-making, transparency and long-term value creation. 

Drawing on the perspectives of ten leading accounting bodies representing more than 1.4 million accountants across 180 countries, and informed by more than thirty interviews across the reporting ecosystem, the first report explains why connected reporting is becoming a hallmark of high-quality, decision-useful information.  

Its release comes as organisations navigate new climate reporting requirements and increasing expectations from investors, regulators and other stakeholders for clear, consistent and decision-useful information. 

CA ANZ Chief Executive Officer, Ainslie van Onselen, said organisations could no longer afford to treat financial and sustainability reporting as separate exercises. 

"Financial information and sustainability information should tell the same story," Ms van Onselen said.  

"Climate-related risks and opportunities can affect cashflows, asset values, access to capital and long-term performance." 

“Organisations that bring these insights together are better placed to explain their strategy, resilience and prospects to investors and other stakeholders." 

The report identifies practical ways organisations can strengthen connections between sustainability-related and financial information, while also highlighting the benefits of a more integrated approach to reporting. 

“Connectivity is becoming one of the defining features of high-quality corporate reporting,” said Jim Knafo, CEO of the GAA.

“As expectations for sustainability-related information rise, professional accountants can help ensure that reporting is more coherent, reliable and useful. This series is intended to support the profession in telling a more connected story about performance, risk and long-term value.” 

The three-part GAA series will progressively move from concepts and emerging trends through to governance considerations and practical implementation guidance for organisations seeking to strengthen connected reporting.