Integrated Reporting

The video discusses integrated reporting, a new approach where organizations report not only financial data but also social, environmental, and governance activities. This shift is driven by investors and analysts seeking to link sustainability with economic value. The video highlights frameworks by the International Integrated Reporting Committee (IIRC) and the Sustainable Accounting Standards Board (SASB), focusing on global and US perspectives. It also covers regulatory developments, including the SEC's push for climate risk disclosures in financial filings.

What is the primary goal of integrated reporting?

• To focus solely on financial performance

• To eliminate traditional financial reporting

• To prioritize short-term profits

• To include social, environmental, and governance activities

Which organization is responsible for creating a global framework for integrated reporting?

• Securities and Exchange Commission

• International Integrated Reporting Committee

• Financial Accounting Standards Board

• Sustainable Accounting Standards Board

What is the main focus of the Sustainable Accounting Standards Board (SASB)?

• To inform all stakeholders

• To help investors make better decisions

• To regulate auditing firms

• To create global accounting standards

How does integrated reporting relate to Generally Accepted Accounting Principles (GAP)?

• It contradicts GAP principles

• It is unrelated to GAP

• It informs GAP and financial accounting standards

• It replaces GAP entirely

What did the SEC start requiring from industries several years ago?

• To include climate risk in their disclosures

• To focus on short-term profits

• To eliminate all risk disclosures

• To disclose only financial risks

Why are organizations encouraged to think more long-term according to the SEC?

• To improve short-term profits

• To focus on brand risk only

• To reduce operational costs

• To incorporate climate risk into their strategies

What type of risks are organizations required to disclose in their filings?

• Only financial risks

• Only brand risks

• Climate, brand, financial, and physical risks

• No risks at all