ROSALES - SAN ANDRES - SANTOS, - TABO - TADEO

Other Reporting Frameworks

and
Overview of Sustainability
Assurance
TEVES - TOLEDO - TRIA - VELASCO - YANSON

BSMA 3-7 GROUP 5

Sustainability reporting
is an organization’s practice of reporting publicly on its significant
economic, environmental, and/or social impacts, in accordance with
globally accepted standards. Such disclosures enable organizations
to measure, understand and communicate their EESG performance
and then set goals, and manage change more effectively
 It also benefits stakeholders
interested in an organization’s
ability to create value over
time, including employees,
customers, suppliers,
investors, business partners,
local communities, legislators,
regulators, and policymakers.
This promotes transparency
and accountability,

Another thing
empowering stakeholders to
make informed decisions and

about helps the company manage

its EESG impacts.

Sustainability
reporting
1. The Global Reporting Initiative’s (GRI)
Sustainability Reporting Standards
2. The Sustainability Accounting Standards Board’s
(SASB) Sustainability Accounting Standards
3. The International Integrated Reporting Council’s
(IIRC) Integrated Reporting (IR) Framework
4. The recommendations of the Task Force on
Climate Related Financial Disclosure (TCFD)

Globally Recognized Standards/Frameworks

in Reporting Sustainability.

Globally Recognized Standards/Frameworks in

Reporting Sustainability.
The tables provided in the
following slides
distinguish the reporting
standards/frameworks
and compares the guiding
principles for defining
proceed to the next slide
report content and
sustainability topics
covered in each.
 Reporting
Standards/Frameworks
if the table is not readable to you, kindly refer to page 75 in the IM

continuation on
the next slide
 Reporting
Standards/Frameworks
if the table is not readable to you,
kindly refer to page 76 in the IM
 Standards/
Frameworks in
Reporting
Sustainability.
Click the image to get the link
An independent 501(c)(3)
nonprofit organization
Mission – to develop and
disseminate sustainability
accounting standards that
help public corporations
disclose material, decision-
useful information to

SUSTAINABILITY
investors
accomplished through
a rigorous process that
includes evidence-
based research and ACCOUNTING
STANDARDS
balanced stakeholder
participation

BOARD (SASB)
 SASB’s Five Broad Sustainability
Dimensions

1. Environment 2. Social Capital 3. Human Capital 4. Business Model and

includes corporate impacts on the
relates to the perceived role of addresses the management of Innovation
business in society, or the a company’s human resources
environment, either through the use addresses the integration of
expectation that a business will (employees and individual
of nonrenewable, natural resources environmental, human, and social
contribute to society in return for contractors) as key assets to
as inputs to the factors of issues in a company’s value-creation
a social license to operat delivering long-term value
production or through harmful process, including resource recovery
releases into the environment that and other innovations in the
may negatively affect natural
5. Leadership and Governance
production process; as well as in
resources and result in impacts to involves the management of issues that are inherent to the product innovation, including
the company’s financial condition business model or common practice in the industry and that are in efficiency and responsibility in the
or operating performance potential conflict with the interest of broader stakeholder groups, design, use phase, and disposal of
and therefore create a potential liability or, worse, a limitation or products
removal of a license to operate
Represents the top 10% of the biggest 2,500
companies in the S&P Global Broad Market Index
based on long-term environmental, social, and
governance criteria
Maintained by S&P Dow Jones Indices in
conjunction with RobecoSAM
a Zurich-based investment specialist that
conducts detailed sustainability research on
thousands of global market capitalization
leaders each year
·Part of a larger family of Dow Jones Sustainability

THE DOW JONES

Indices (DJSI) launched in 1999 as the first global
sustainability benchmark
Many investors seek out socially conscious SUSTAINABILITY
WORLD INDEX,
investments, making the DJSI World a popular
benchmark for private wealth managers

(DJSI WORLD)
 DJSI World Characteristics and
Methodology

The index is weighted on a free-float market capitalization

basis, which means market capitalization is calculated by
taking the share price and multiplying it by the number of
shares available in the market

Special Considerations Reasons for Removal from the Index

Companies listed in the DJSI
World are reevaluated each year
Scoring process – begins in March
with new scores released in
September
Failure to show consistent progress
If the index committee determines the company is not behaving in
accordance with sustainability guidelines
Ethical exclusions
Each company's involvement with ESG issues that might damage the
company's reputation and core business
Issues such as human rights issues, labor disputes, workplace safety,
illegal commercial practices, fraud, and environmental disasters
“an engagement in which a practitioner aims to
obtain sufficient appropriate evidence in order to
express a conclusion designed to enhance the
degree of confidence of the intended users other
than the responsible party about the subject matter
information” (IAASB, 2013, p.7)

Assurance
Overview of Sustainability Assurance
 The
Tripartite
Nature of
Assurance
Engagements
sustainability assurance is still a voluntary undertaking
in most jurisdictions and the market is open to different
types of SAPs who compete for a share of the market
The demand for sustainability assurance is a result of
organizational stakeholders expressing skepticism over
the credibility of published sustainability reports.

sustainability assurance
Study by Moroney et al. (2012) compared the quality of
assured and non-assured environmental reports to assess if
there were differences in the quality of disclosure

Their study indicates that assured

environmental reports achieve a higher quality
score than non-assured environmental reports.
They also found that the quality of
environmental reports improves over time i.e.,
reporters learn, and this learning is also partly
responsible for improvements in quality.
 Thank you for
listening!
I hope this presentation was able
to help you get to know the lesson a bit better.