‘Towards Sustainable Businesses: Good Practices in Business Model, Risks and Opportunities Reporting in the EU’ report has been published by the European Lab@EFRAG Project Task Force on the reporting of non-financial risks and opportunities and linkage to the business model (PTF RNFRO).
The PTF-RNFRO deliverables are written with the intention of assisting companies in benchmarking and developing already current reporting practices.
Pursuant to a collaborative attempt in reviewing reporting practices and collecting stakeholder feedback, the PTF-RNFRO, whose attention was on the reporting on sustainability risks and opportunities and uniting business models- a vital component of a proposal for a Corporate Sustainability Reporting Directive (CSRD)- has published its results in a Main Report and Supplementary Document with good reporting practices.
The Main Report depicts the state of play and the drivers of current reporting practices, the use of technological solutions, and proposes a way to improvement in the reporting of sustainability risks, opportunities and their linkage to the business model.
Whereas, the Supplementary Document provides 37 examples of good or leading practices sourced from 27 companies- with detailed explanations as to why these are good practices and further ideas for improvement.
The PTF-RNFRO deliverables recognise and share good practices, intending to support companies to benchmark and develop their current reporting practices.
Keynote speakers Pascal Durand, MEP, EP rapporteur on the CSRD and Alain Deckers from the European Commission will hold a webinar in early November. There will be a panel session involving PTF-RNFRO members during the webinar to further discuss the implications and application of their report findings.
Jean-Paul Gauzes, EFRAG Board President and Chair European Lab Steering Group observes: “Reporting on how sustainability risks, opportunities are linked to the business model is necessary to understand the value creation of companies. The extensive and detailed work by the 19 PTF-RNFRO members led by Mario and Dawn will be a useful reference point for EFRAG’s wider sustainability reporting work. We hope that the identified examples can serve as inspiration for companies to improve their current reporting. I would like to thank all project task force members for this important contribution to the work of EFRAG.”
Mario Abela and Dawn Slevin, Co-Chairs PTF-RNFRO note that: “Business predicated on the perpetual consumption of materials, which is unsustainable ecologically, socially and ultimately economically needs rapid redress in the face of our global climate and environmental emergency. The role of reporting has shifted to going beyond explaining financial performance to understanding the risks and opportunities inherent in business models driving those results, encompassing both people and the planet. Profits can no longer be disconnected from the impacts and dependencies of business models. Our work is intended to influence practice by encouraging preparers to provide a much clearer ‘through-line’ between financial and sustainability information using the business model as the mechanism for achieving that. To come to our conclusions, we have drawn on insights from a breadth of stakeholders to whom we owe a debt of gratitude. Foremost, we would like to express our immense thanks to all the PTF-RNFRO members for their expert insights, generosity of time despite the limitations arising from the pandemic, and constructive and open-minded approach throughout the project.”
Source: Sustainability Reporting