The unthinkable thoughts of the loss of lives, with two million lives lost and counting, this immediate crisis of the pandemic has raised a greater awareness of the long term crisis in sustainable value creation (SVC). These loses, be it of lives or jobs or the wealth, has made the predictions of the upcoming crisis fell way less abstract. The constant battle among the climate experts and the international conversations to push harder for a sustainable development aren’t new and neither is the global convo regarding addressing these issues. Anyway, sustainability in the value creation especially in the natural environment and many other ideas related to economic activity has become a prominent agenda with plenty of acceleration.
The need for sustainability has enhanced a movement for the corporate reports. A need for the clear and comprehensive picture of its ability to build a sustainable value over time is very important for the sustainability-minded stakeholders to assess a company’s future performance, not just a snap shot of their finances. As the traditional financial reporting cannot convey this demand and it was not meant to be either. Thus, the corporate reporting systems needs to update most certainly, and evolve to expand to deliver the right information to its shareholders, regulators and the public.
But just the new forms of non-financial and sustainability-related reporting will not be useful, they will in turn cause more damage and can act counterproductive. In the case they deliver information that is consistent, comparable, reliable and credible, then its holds a chance. Corporate report of any kind must deliver the greater trust in the companies and build confidence in the markets and not create any sorts of confusion or give raise to new concerns. To have value added creation, it is necessary to have two perspectives, one being the need for the requirements for material and non-financial information disclosures focused on company performances, risk profile, economic decisions and enterprise value creation (EVC). The second one is the need for requirements for reporting on broader, material sustainable development and company impacts on economies, environments and people. The thin line between these two will fade away with time and give birth to a dynamic material, which in turn will affect the second set of issues to make it flow to into the decisions that belong to the first set.
The work of many idealistic organizations and individuals has set the platform. The thrust behind sustainability subjects means the time to act is now: with a clear, unified, global approach, executed at the company level by the specialists best prepared to both meet this demand and serve the public interest, both in responding to change and anchoring it in essential skillsets is a wise value proposition.
