Non-Financial Reporting Initiatives

Non-Financial Reporting Initiatives

Copyright: © 2018 |Pages: 6
DOI: 10.4018/978-1-5225-3622-2.ch002
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Abstract

This section of our book explains the main non-financial reporting initiatives. From reporting schemes (developed at micro or macro level, or even global reporting guidelines), to specific regulation in France, USA, Denmark, Sweden, South Africa, the first reporting initiatives on non-financial sector were meant to contribute to the development of corporate reporting field, being an initial step in the revolution of IR.
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Reporting Schemes And First Regulation Attempts In The Area Of Non-Financial Reporting

The most prominent non-financial reporting initiatives were undertaken by worldwide organizations, such as Global Reporting Initiative, AccountAbility, EFRAG- European Financial Reporting Advisory Group, SASB- Sustainability Accounting Standards Board, Climate Disclosure Standards Board, IIRC- International Integrated Reporting Council, FEE- Federation of European Accountants, SA IRC- South African Integrated Reporting Committee, AA 1000, Accounting for Accountability, and other professional organisms.

In 2010 the UN Global Compact Leaders’ Summit was discussing the effects of the crises for the global economy, stating the need for a sustainable approach when rebalancing the economy (UN Global Compact-Accenture, 2010).

One of the most recent actions of the IIRC involves the introduction of the Corporate Reporting Dialogue (CRD). This represents a tool for comparing the content of participants’ frameworks or standards through an IR perspective. CRD participants include IASB, FASB, IPSASB, CDSB, SASB, GRI, and ISO1.

Eccles et al., (2010a) performed an analysis upon non-financial reporting tendencies within the business world. The scholars mentioned large discrepancies between Europe and other continents, as the European Commission highly promotes non-financial information disclosure. Contrary to European countries, Japan, China and U.S. maintain low disclosure levels of non-financial reporting.

KPMG (2008a) survey analyses trends in corporate reporting including the top 250 companies of the Fortune 500 (G-250), as well as the top 100 companies in 16 countries. It noted that over 80% of the G250 produce sustainability reports. On average, 45% of the top 100 companies in each of the surveyed countries produce sustainability reports - Japan and the United Kingdom are leaders with 93% and 91% respectively. South Africa is some way behind at 45%, but it is one of the leaders in integrating the sustainability report into the annual report.

Table 1.
Use of reporting schemes by G250 and N100
Type of SchemeG250 (%)N100 (%)
GRI Guidelines7769
Internally-developed company schemes2019
National reporting schemes1917
Other schemes1313

Source: KPMG, 2008a: 71.

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