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Connecting the COVID-19 pandemic, environmental, social and governance (ESG) investing and calls for ‘harmonisation’ of sustainability reporting

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  • Adams, Carol A.
  • Abhayawansa, Subhash

Abstract

We critically examine the call for ‘harmonisation’ of sustainability reporting frameworks and standards that occurred alongside an increase in environmental, social and governance (ESG) investing during the COVID-19 pandemic. We identify three myths that have been promulgated in calls for ‘harmonisation’ that seek to: simplify sustainability reporting and ESG analysis and shift the control for standard-setting to an investor-oriented private sector body. We argue that the myths are based on deception, misunderstandings, and disregard for both academic research and the views of sustainability practitioners. They demonstrate a lack of regard for different users of corporate sustainability information, a lack of analysis of the alternatives, an overestimation of the International Financial Reporting Standards (IFRS) Foundation’s expertise and mischaracterisation of sustainable/ESG financing.

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  • Adams, Carol A. & Abhayawansa, Subhash, 2022. "Connecting the COVID-19 pandemic, environmental, social and governance (ESG) investing and calls for ‘harmonisation’ of sustainability reporting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:crpeac:v:82:y:2022:i:c:s1045235421000289
    DOI: 10.1016/j.cpa.2021.102309
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    2. Ozili, Peterson K, 2023. "Financial stability and sustainable development," MPRA Paper 118793, University Library of Munich, Germany.
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    10. Peterson K. Ozili & Paul Terhemba Iorember, 2024. "Financial stability and sustainable development," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 2620-2646, July.
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