Sustainability Reporting: An Untapped Market for CPAs

Source: Accounting Today

Corporations today are under a great deal of pressure from investors and other stakeholders to provide greater transparency, particularly when it comes to “sustainability.” This includes issues such as environmental impact, customer safety, employee health and safety, fair trade practices, and many others.

Although there's no legal obligation for corporations to issue “sustainability reports,” an increasing number of companies is doing so voluntarily. At the same time, organizations such as the Global Reporting Initiative (GRI) are developing standards for these reports. GRI's “G3.1” reporting framework provides guidelines on reporting principles and disclosures in six areas: environmental, human rights, labor practices, society, product responsibility, and economic. And the International Integrated Reporting Committee (IIRC) – whose members include representatives from the FASB, the IASB, and the Big Four firms – is working to raise awareness of sustainability reporting and to develop an integrated reporting framework that would combine financial and sustainability reporting.

As sustainability reporting increases, there's also a growing need for external assurance to enhance the credibility of sustainability reports. This represents a substantial untapped market for CPAs and other advisors. CPAs looking to provide sustainability reporting assurance services can find guidance in global standards, such as the ISAE 3000 International Standard on Assurance Engagements or the AA1000 Assurance Standard.

For the complete article, read “Your next growth area? Sustainability reporting assurance is on the rise.”

From Accounting Today, August 1, 2011, SourceMedia Inc., One State Street Plaza, 27th Floor, New York, NY 10004, 800-221-1809.