SUSTAINABILITY

REPORTING
3BSMA-MAIN2|
GUERRERO. LOPEZ. ROMER. TORRES

January 10, 2023 SAS 10-11

Lesson Objectives:
1.Understand the concept of
sustainability reporting
2.Know the purpose of
sustainability reporting
3.Enumerate the financial and
non-financial information
relevant to entity’s sustainability

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Sustainability Reporting

• Sustainability reporting is a tool

to increase transparency and
accountability in the issues
that traditional financial
reporting is not dealing with.

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Sustainability Reporting

Greater disclosure and transparency; financial

and non-financial.
the stakeholders gives greater attention to
how businesses impact the economy,
environment and society in respond to
sustainability challenges

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 Sustainability Reporting

• Only less than 22% of PLC have published report on

sustainability impacts and performance in the
Philippines.
• Philippines need the force to promote the SR – SEC.
• Principle 10, Code of Corporate Governance for PLC

“the board should have a clear and focused policy on the

disclosure of non-financial information, with emphasis on the
management of economic, environmental, social and
governance (EESG) issues of its business, which underpin
sustainability. Companies should adopt a globally recognized
standard/framework in reporting sustainability and non-
5 financial issues.”
Guidelines • Make sustainability reporting relevant and value adding fo
Philippine PLCs
• Help PLCs to identify, evaluate and manage their material
Economic, Environmental and Social (EES) Risk and
opportunities.
• Help PLCs to assess and improve their non-financial
performance across EES aspects of their organization to
optimize business operations, improve competitveness, and
longterm success.
• Provide mechanism that would allow PLCs to communicate
with its takeholders, including investors or its potential
investors.
• Enable PLcs to measure and monitor its contributions
towards achieving universal targets of sustainability, such as
the UN SDG, as well as national policies and programs, such
as AmBisyon Natin 2040

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 Sustainability
• Development that meets the needs of trhe present without
compromising the ability of future generations to meet their
own need.
Sustainability Reporting
• Organization practice of reporting publicly on its significant EES impact
in accordance with globally accepted standards.
• Diclosures- measure, understand communicate EESG performance- set
goals and manage changes effectively
Global Standard aims to develop a set of common principles and standards for
propriety, integrity and transparency in international business and finance.

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Sustainability
• Financial Information
 direct link wih the financial accounting system.
Expressed in monetary units.
• Non-financial Information
Quantitaive or Qualitative
No GARP

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Activity:
Water
Price of purchases consumption
Waste in tons/ number of
collections recycled waste
Waterbills
Disposal costs
Share of eco-labeled and
fair-trade products Expenditure on
heating

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Activity:
Water
Price of purchases consumption
Waste in tons/ number of
collections recycled waste
Waterbills
Disposal costs
Share of eco-labeled and
fair-trade products Expenditure on
heating

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 Motivation for Reporting
about Sustainability
3BSMA-MAIN2|
GUERRERO. LOPEZ. ROMER. TORRES

January 10, 2023 SAS 10-11

Lesson Objectives:
1.Appreciate the internal and
external motivation for
sustainability reporting

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Internal Benefits
“Internal motivation”
means that your
1. Effective management of motivation to
accomplish your goal
sustainability risk and comes from within
opportunities you. It is determined
by your own values
and goals
2. Sustainable Vision, strategy and
Business Plans
3. Improved management systems
4. Motivated workforce
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External Benefits
1. Improved company reputation
and brand value
2. Investor attractiveness
“External motivation”
means that your
motivation to attain
your goal comes from a
source outside
yourself.

3. Stakeholder engagement
4. Competitive advantage

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Activity:
1. To gain more knowledge about the entity’s risk and risk
management
2. To gather more information for decision making
3. To gain and strengthen trust to the entity
4. Improve accountability and transparency
5. To improve the employees and satisfaction and retention
6. To improve efficiency
7. To improve communication with different stakeholders
8. Create a positive and trustworthy image
9. Add value to the entity’s performance

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Activity:
1. To gain more knowledge about the entity’s risk and risk
management
2. To gather more information for decision making
3. To gain and strengthen trust to the entity
4. Improve accountability and transparency
5. To improve the employees and satisfaction and retention
6. To improve efficiency
7. To improve communication with different stakeholders
8. Create a positive and trustworthy image
9. Add value to the entity’s performance

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Thank You !

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