Connecting the COVID-19 pandemic, environmental, social and governance (ESG) investing and calls for ‘harmonisation’ of sustainability reporting
•Calls for harmonised ‘sustainability reporting’ standards are underpinned by myths.•It is a myth that a Global sustainability standard-setting body is urgently needed.•Financial materiality should not be paramount in determining sustainability disclosures.•Investor needs cannot be satisfied by cons...
Gespeichert in:
Veröffentlicht in: | Critical perspectives on accounting 2022-01, Vol.82, p.102309-102309, Article 102309 |
---|---|
Hauptverfasser: | , |
Format: | Artikel |
Sprache: | eng |
Schlagworte: | |
Online-Zugang: | Volltext |
Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
Zusammenfassung: | •Calls for harmonised ‘sustainability reporting’ standards are underpinned by myths.•It is a myth that a Global sustainability standard-setting body is urgently needed.•Financial materiality should not be paramount in determining sustainability disclosures.•Investor needs cannot be satisfied by consistent and comparable metrics alone.•Calls for harmonisation overlook needs of non-investor stakeholders.
We critically examine the call for ‘harmonisation’ of sustainability reporting frameworks and standards that occurred alongside an increase in environmental, social and governance (ESG) investing during the COVID-19 pandemic. We identify three myths that have been promulgated in calls for ‘harmonisation’ that seek to: simplify sustainability reporting and ESG analysis and shift the control for standard-setting to an investor-oriented private sector body. We argue that the myths are based on deception, misunderstandings, and disregard for both academic research and the views of sustainability practitioners. They demonstrate a lack of regard for different users of corporate sustainability information, a lack of analysis of the alternatives, an overestimation of the International Financial Reporting Standards (IFRS) Foundation’s expertise and mischaracterisation of sustainable/ESG financing. |
---|---|
ISSN: | 1045-2354 1095-9955 1045-2354 |
DOI: | 10.1016/j.cpa.2021.102309 |