We support the continued innovation in EER and we are committed to working collaboratively with key stakeholders, including policy makers and regulators to help generate the right balance between policies, regulation and innovation.
The Corporate Reporting Dialogue is an initiative by the International Integrated Reporting Council (IIRC), designed to respond to market calls for greater coherence, consistency and comparability between corporate reporting frameworks, standards and related requirements.
The XRB is supportive of the Dialogue and its Better Alignment Project. This Project focuses on driving better alignment in the corporate reporting landscape and will make it easier for you to prepare effective and coherent disclosures for your entity that meet the information needs of both capital markets and society.
As part of the project, Corporate Reporting Dialogue participants will map their respective sustainability standards and frameworks to identify the commonalities and differences between them.
Participants will then work to achieve better alignment on overlapping disclosures – taking into account the different focuses, audiences and governance procedures.
You can get further information about the project on the Corporate Reporting Dialogue website.
XRB ongoing activities
We are currently undertaking the following EER-related activities:
EER navigational resource
The increase in EER has seen the increase in frameworks, guidance and initiatives in the corporate reporting arena. The XRB has heard concerns that entities can find it challenging to make an informed decision when selecting a resource to use or framework to implement.
Responding to these concerns, we have put together an EER navigational resource to help you distinguish between existing frameworks and make better-informed decisions when considering EER.
Considering developing guidance on EER reporting
This includes monitoring and contributing to the International Accounting Standards Board (IASB) project to update its IFRS Practice Statement 1 Management Commentary.
The IASB has acknowledged that some significant broader financial information is not adequately captured in financial statements. It is in the process of updating the Practice Statement to reflect new developments in integrated and sustainability reporting, particularly the growing interest in long-term value creation.
Considering the assurance implications of EER
Assurance over EER is a rapidly-evolving area and, at present, there is significant variation across jurisdictions.
The majority of assurance engagements over EER tend to be narrow in scope—typically covering only selected indicators rather than a whole report. Almost all are limited assurance engagements rather than reasonable assurance engagements.
The International Auditing and Assurance Standards Board (IAASB) is currently developing guidance for practitioners to apply the applicable assurance standard in a consistent and appropriate way.
This will mean users and investors can have greater justified confidence and trust in the EER information— irrespective of the EER framework applied.
1. These are the Climate Disclosure Standards Board (CDP), the Financial Accounting Standards Board (as an observer only) the Global Reporting Initiative (GRI), the International Accounting Standards Board (IASB), the International Organisation for Standardisation (IOS), the Sustainability Accounting Standards Board (SASB), and is convened by the International Integrated Reporting Council (IIRC).