Sustainability Measurement and Reporting

Moving beyond the economic lens, the focus is on the growing awareness of environmental and social impacts. Principles and standards now underpin the measurement and reporting agenda. CEOs and their leadership teams increasingly recognise the need to keep stakeholders informed about levels of performance. For measurement, this chapter examines three indicators: economic, social, and governance. Key frameworks and standards for sustainability measurement are considered. Some principles and approaches to measuring sustainability, including International Financial Reporting Standards (IFRS), IFRS S1, and IFRS S2, are analysed. The Corporate Sustainability Reporting Directive, which came into effect in January 2023, was introduced, marking a significant shift as compliance and reporting are now mandatory. Consideration is given throughout this chapter to some of the current problems of Sustainability Measurement and Reporting, including a lack of standardisation, materiality determination, integration with financial reporting systems, and stakeholder engagement. The Mini Case Study of Singapore Airlines and the Strategy Nugget of HSBC sustainability risk management provide global perspectives of two multinationals. These help the reader gain insights into the now-mandatory reporting for organisations. The final section of this chapter stresses the need for companies to use a comprehensive and multifaceted approach as they begin to deliver the required reports.