In our April podcast, Chair and Vice-Chair of the International Accounting Standards Board (Board) Hans Hoogervorst and Sue Lloyd join Technical Staff Member Matt Tilling to provide an update on the Board's latest meeting as well as on other developments and events that have taken place this month.
Hans begins with a review of his speech on sustainability reporting during the Climate-Related Financial Reporting Conference organised by the University of Cambridge. He suggests that by helping investors understand how companies are affected by sustainability issues, reporting offers a promising step forward. He also explains the role the Board intends to play and its work to update the Management Commentary Practice Statement. He cautions against exaggerated expectations for sustainability reporting as a catalyst for change in the absence of policy and political intervention. At the same time, Hans urges companies to report on what is strategically important to them, including how remuneration policies align with their long-term objectives and the environmental, social and governance (ESG) factors that underpin the companies’ long-term success.