Experts at a webinar on Thursday opined that the sustainability reports help companies build clients’ confidence and improve corporate reputations. The professional accountants can play a big role in preparation of corporate sustainability reports of the companies for the real development of the economy.
They also said local and foreign companies are increasingly looking to assess their competitive position in the market with respect to sustainability reporting and sustainability performance. It gives a clear idea to all stakeholders of company’s overall financial impacts and creates opportunities for strengthening the efforts towards building a prosperous sustainable future.
The Institute of Chartered Accountants of Bangladesh(ICAB) organized the webinar titled ‘Latest Developments in the Standardization of Sustainability Reporting: An Update from Global and Local Perspective’
Mohammad Muslim Chowdhury, Comptroller and Auditor General of Bangladesh joined the webinar as the chief guest while ICAB President Md. Shahadat Hossain FCA delivered address of welcome. Nasir Uddin Ahmed FCA, Council Member & Past President ICAB and Senior Partner, MABS & J Partners, Chartered Accountants moderated the webinar. Khondkar Morshed Millat, General Manager, Sustainable Finance Department, Bangladesh Bank also joined as guest speaker.
Ataur Rahman Belal, PhD, Professor and Chairman of Accounting, Sheffield University Management School, The University of Sheffield, UK presented the keynote paper. Fouzia Haque FCA delivered closing remarks while ICAB CEO Shubhashish Bose spoke on the subject matter.
Describing the accounting profits and the social profit of the organisations from the sustainable reporting, Mohammad Muslim Chowdhury, Comptroller and Auditor General of Bangladesh said, Financial Statements is being prepared not only for public accountability but also for the issue of concerning the organizations’ sustainable activities including the financial transactions.
He said, ICAB members need to be aware about the sustainable reporting guidelines and directives so that they could give assurance of the sustainable activities of organizations to the stakeholders.
ICAB President Md. Shahadat Hossain FCA said, sustainable reporting is mainly based on investor-focused capital market standards of IFRS Sustainability Disclosure Standards, and the GRI sustainability reporting requirements set by the Global Sustainability Standards Board (GSSB), compatible with the first, designed to meet multi-stakeholder needs. He said, however, in most cases, sustainability reporting is mistaken as interchangeable with corporate social responsibility (CSR) reporting, non-financial reporting or a triple bottom line (three Ps: People, Planet, and Profit) reporting, among others.
The Keynote Presenter Professor Ataur Rahman Belal, PhD, said, considering current business phenomenon, in 2021 IFRS Foundation has revised the governance structure incorporating International Sustainability Standard Board (ISSB). At the same time the EU Non-Financial Reporting Directive (NFRD), has been revised and renamed as Corporate Sustainability Reporting Directive (CSRD).
All these initiatives were taken to give an assurance of sustainability information of companies to the stakeholders, he said.
He said, it is true that the local and foreign companies are increasingly looking to assess their competitive position in the market with respect to sustainability reporting and sustainability performance.
In February 2011, Bangladesh Bank issued a policy titled "Guidelines for Green Banking" for all scheduled banks. The guidelines require commercial banks to prepare their Sustainability Reports as Independent Annual Sustainability Report (IASR) by following the GRI standards.
The keynote presenter said, Banks and Financial Institutions have submitted their reports (annual/integrated) to the GRI sustainability disclosure database contained a wide range of sustainability topics but failed to meet the requirement of GRI standards or guidelines, he cited.
