To continue the dialogue on corporate reporting and value creation, IFAC has posted a summary of its feedback on the recent World Economic Forum (WEF) consultation “Toward Common Metrics and Consistent Reporting of Sustainable Value Creation.”

It is well acknowledged by investors, business leaders, and other stakeholders that, in addition to financials, effective corporate reporting must also measure value creation, sustainability and environmental, social, and governance factors. Such enhanced corporate reporting is needed to maintain confidence in companies and financial markets, to better meet stakeholder needs, and to inform business planning for long-term success.

The WEF consultation makes a valuable contribution in the dialogue amongst all stakeholders who share a common interest in relevant, reliable, and comparable reporting of this information.

In its consultation response, IFAC focuses on six takeaways to keep the global conversation moving forward:

• Rationalization efforts must work toward a global system. IFAC strongly supports a global approach to ESG metrics and disclosures.
• Timeliness is key. Alignment, harmonization, and convergence must take place before regional or jurisdiction-specific initiatives become standard practice.
• Take a modular approach. Build upon existing high-quality metrics and disclosures.
• There is a role for both standards and frameworks. For example, the Integrated Reporting Framework.
• Assurance is needed to deliver confidence in corporate reporting.  Assurance is most effective when applied against metrics and disclosures that follow clear best practices or standards.  
• The accounting profession must remain engaged in the conversation. The profession is critical to evidence-based decision making, reliable information gathering, and consistent, comparable corporate reporting—be it ESG-focused or otherwise. 

IFAC stands ready, as a global voice and convener of the accountancy profession, to facilitate coordination, assimilation, and convergence in sustainable reporting approaches. IFAC supports the WEF consultation as a catalyst to challenge policy makers, regulators, and ESG metric providers to get the job done, now. 

Ongoing and active engagement by the profession—through this initiative and by assisting companies in the implementation of its metrics and disclosures—is an enormous opportunity for the profession to embrace.

IFAC responds to the World Economic Forum (WEF) Consultation Draft: Toward Common Metrics and Consistent Reporting of Sustainable Value Creation.

Professional accountants in business and the public sector have an important role to play in leading their organizations through the challenging times ahead. In a recent report, Supporting Accountants in Business & Public Sector through Uncertain Times, the IFAC Professional Accountants in Business Committee (PAIBC) shares latest thinking on focus areas for finance teams, including on value creation, data, accountancy careers, and professional and skills development.

“Organizations are turning to their accountants and finance teams as trusted professionals for guidance in navigating the crisis and its economic implications,” said PAIBC Chair, Sanjay Rughani. “Times of crisis provide unique opportunities for radical change, often by necessity. But a crisis also offers many valuable lessons for the future.”

Through ongoing conversations with global business leaders, Rughani shares four additional recommendations for accountants to lead their organizations in the context of current uncertainties. These recommendations include:

• Financial management: Look for opportunities to drive cost control and savings, new sources of growth and revenue, and positive cash flows.
• Operational effectiveness: Drive thinking about the supply chain, digital transformation, data, and innovation.
• Leadership: Support strong governance, deliver frequent and authentic communications, and evolve commitments to social purpose; and
• Planning: Update scenario planning and risk management, monitor and respond to market realities, and take the time to understand new stakeholder expectations.

Today’s business challenges make clear the need for strong information and analysis to support decision-making. Accountants working within organizations – both in the public and private sector – are well-positioned to provide this key information and to deliver in other areas critical to long-term success. CFOs and finance teams must embrace these opportunities to lead.

This is the sixth installment of a 12-month publication series titled Exploring the IESBA Code. This installment addresses conflicts of interest. 

For more information about the Code, click here.

In 2014, Nana Yasuda founded iProfess Partners LLC in Tokyo, offering translation/interpretation and IR consulting services mainly to Japanese organizations, including the Japanese Institute of CPAs, major audit firms and listed companies, and to foreign investment funds seeking investment opportunities in Japan. The organization is dedicated to using clear and concise language with a goal to improve communication is supported by a strong background in accounting and finance. Since November 2020, Ms. Yasuda has also closely supported Mr. Kohei Kan in his role as an IFAC Board member.

Ms. Yasuda has over 10 years of working experience with Deloitte Touche in Japan and the U.S. She has extensive knowledge in the field of auditing, M&A financial due diligence, and IFRS, underpinned by her professional background, which includes:

• Provided audit service mainly to IT companies in Silicon Valley in the US

• As a project manager in corporate finance, providing cross-border financial due diligence and evaluation services to more than 20 multi-national companies (Tokyo, Japan)

• Spent three years in IFRS research center, offering technical advice to firm members (Tokyo, Japan)

• Established an in-house translation department and rendered English/Japanese translation/interpretation services to more than 50 clients over three years (Tokyo, Japan)

Ms. Yasuda started her professional career as an analyst at a Japanese venture capital firm, Japan Asia Investment Co. Ltd. She has a bachelor of arts in economics from KEIO University in Japan.