Why is it important?

Sustainability reporting is a medium of communication and publication that measures and discloses the impact of a company's operational activities, both positive and negative impacts, on economic, social, environmental, and governance issues. A well-prepared report is required so that stakeholders can have a full understanding of all the company’s sustainable development activities, which in turn will enhance the company’s reputation. In preparing the sustainability reporting, a company needs to adhere to the most up-to-date international corporate reporting standards.

The International Sustainability Standards Board (ISSB) firstly published IFRS S1 and IFRS S2—the first two ISSB Standards on 26 June 2023, intended to deliver a high-quality global baseline of sustainability-related disclosures to inform investment decisions. This IFRS standard will become a good communication tool between a company and its existing and potential investors as it enables investors to really understand how various sustainability-related risks and opportunities are going to affect the future values and prospects of a company.

IFRS sustainability standard requires reporting entities to analyse climate risks and align the climate risk scenario with the financial statements. Other key elements in disclosing company’s sustainability performance are reporting Greenhouse Gas (GHG) emissions. It includes identifying, gathering data, calculating emissions, and preparing for disclosure of scope 1, 2, and 3 emissions. This training will provide a hands-on knowledge on how to develop such climate-risk scenario and the GHG emissions calculations.