With a shift in thinking towards sustainability, traditional reporting has become insufficient to meet the demands of stakeholders. Integrated reporting, which involves combining financial and non-financial sustainability information into one report, has been introduced as the solution to this problem.

Organizations have responded to the demand for more transparency by developing sustainability reporting frameworks. Some of the most well-known organizations are the Global Reporting Initiative (GRI), the International Integrated Reporting Council (IIRC), and the International Sustainability Standards Board (ISSB) which seeks to make report more consistent and comparable across industries and geographies.

Key performance indicators for sustainability need to be identified to ensure reporting and assurance activities are aligned with strategy. These are called Sustainability Performance Indicators (SPIs) and they often differ by industry and company. The key concept and tool of “materiality” plays a major role in determining priorities and performance indicators.

Like financial reporting, sustainability reporting principles vary between the U.S. and the rest of the world. These variations stem from differences in the accepted definitions of materiality.

The change brought about by sustainability and social impact initiatives will have major tax implications. This is occurring on a global scale.

Sustainability accounting (as with sustainable finance) is a lot about taking into considerations the needs of multiple stakeholders not just of shareholders. This so-called “stakeholder model” of capital and management ensures leaders have a broad view of risk and opportunity.