Integrated Reporting

The video discusses integrated reporting, a new approach where organizations report not only financial numbers but also social, environmental, and governance activities. This shift is driven by investors' demand for sustainability performance linked to economic value. Key organizations like IIRC and SASB are leading this change, with frameworks to include these criteria. The SEC has also started requiring climate risk disclosures in financial reports, encouraging long-term thinking. The video highlights the path from IIRC to SASB, GAAP, and FASB, emphasizing the importance of these frameworks in providing assurance and attesting to company information.

What is the primary goal of integrated reporting?

• To eliminate the need for financial audits

• To prioritize short-term profits over long-term success

• To include social, environmental, and governance activities in reporting

• To focus solely on financial performance

Which organization is focused on creating a global framework for integrated reporting?

• Financial Accounting Standards Board

• Sustainable Accounting Standards Board

• International Integrated Reporting Committee

• Securities and Exchange Commission

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

• To regulate international trade practices

• To help investors make better sustainable finance decisions

• To inform all stakeholders about a company's performance

• To develop new financial accounting software

Why did the SEC start asking industries to include climate risk in their disclosures?

• To promote long-term thinking and risk management

• To reduce the number of required disclosures

• To encourage short-term financial gains

• To increase the complexity of financial reports

What type of risks are organizations now required to disclose alongside climate risk?

• Supply chain risk, credit risk, and liquidity risk

• Political risk, legal risk, and reputational risk

• Technological risk, market risk, and operational risk

• Brand risk, financial risk, and physical risk