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The changing business environment of today which is symbolized by cross border flow of capital, technology and products has broadened the dimensions of accountability and performance. An increasing awareness of issues like ecological, economical and social sustainability has made it imperative for the accounting profession to adapt itself towards a substantive role in creating and enabling such development which does not impair the future. Sustainability presents both a challenge and an opportunity for a professional accountant as the latter needs to realize that individuals, societies and governments are interested in the environmental, social and economic impacts of enterprises on which he / she is likely to have an increasing role in meeting those concerns.
Sustainability is the capacity for continuance in the long term. In the context of organization it encompasses the social, environmental and economic impacts of a business or other, organization. These impacts are judged in terms of the extent to which they contribute to sustainable of envelopment.
Sustainability reporting is the practice of measuring, disclosing, and being accountable to internal and external stakeholders for organizational performance towards goal of sustainable development. It is a broad term, used synonymously with reporting on triple bottom line, corporate social reporting.
A sustainability report can be used for various purposes, including:
Benchmarking and assessing sustainability performance with respect to laws, norms, codes, performance standards and voluntary initiatives
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Demonstrating how organization influences and is influenced by expectations about sustainable development
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Comparing performance within an organization and between different organizations.
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Thus, sustainability reporting is thus a vehicle to communicate with stakeholders on a company’s economic, environmental and social management and performance.
The changing business environment has created an exigency to view to sustainability reporting as an important aspect. With this view ICAI ARF has formed a Committee on Sustainability Reporting to look into the various aspects of Sustainability Reporting.
Committee works under the Chairmanship of Shri Suresh P. Prabhu, (Hon’ble member of Parliament) and comprising of experts representing various stakeholders. The committee among others includes: The President ICAI/ Chairman, ICAI ARF; Chairman, ASB, ICAI; Chairman, AASB, ICAI; Shri Y. H. Melegam, FCA, Mumbai; Dr. Ajit Ranade, Chief Economist, Aditya Birla Group and Senior representatives from ICICI Bank , ITC, CII, IIM- Banglore, Reliance Industries, Tata , CAG, Ministry of Environmental & Forest.
Any person who is interested in giving suggestions or ideas on Sustainability Reporting can reach us at arf@icai.in. |
