Two key problems will keep sustainability reporting from changing the world

There have been a lot of recent, positive developments in the world of corporate sustainability reporting. But can these efforts possibly keep pace with the interconnected and existential threats of the climate emergency, racial injustice and inequality, social unrest, and Covid-19?

BY DAN OSUSKY | SEE FULL ARTICLE ON QUARTZ HERE

There have been a lot of recent, positive developments in the world of corporate sustainability reporting. But can these efforts possibly keep pace with the interconnected and existential threats of the climate emergency, racial injustice and inequality, social unrest, and Covid-19?

The amount of carbon in the atmosphere is growing despite the economic slowdown from the pandemic, and progress toward achieving the goals of the Paris Agreement hasn’t been fast enoughThere’s been regression in achieving the UN’s Sustainable Development Goals—and 39% of business leaders report that their ambitions aren’t enough to achieve them.

consumers, and the impact of water shortages on future growth.

As the world faces growing crises and challenges to the existing order, there has been more dialogue about the private sector’s role in addressing them. The European Union is launching its proposal for its Corporate Sustainability Reporting Directive. In the US, the SEC is reviewing the possibility of climate disclosures; and the IFRS Foundation is developing an International Sustainability Standards Board. Work also has been done to clarify and harmonize what already exists, including joint position statements from the major voluntary sustainability reporting standards, the merger between the Sustainability Accounting Standards Board and the International Integrated Reporting Council, and the collective work of the Impact Management Project.

All of these sustainability reporting developments share a common recognition: that higher quality, more efficient, and more widespread sustainability reporting standards for businesses are necessary.

The downside? All of this emphasis on reporting might divert attention from other, perhaps more difficult but also more impactful changes that need to be made.

SEE FULL ARTICLE ON QUARTZ HERE