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Advancing Sustainability Reporting in Canada: 2019 Report on Progress

Author

Listed:
  • Charles H. Cho
  • Kathrin Bohr
  • Tony Jaehyun Choi
  • Katharine Partridge
  • Jhankrut Mukesh Shah
  • Ada Swierszcz

Abstract

This study examines the progress Canada's largest companies are making in their environmental, social, and governance (ESG) disclosures. Given the introduction of the Global Reporting Initiative (GRI) Standards and the United Nations Sustainable Development Goals (UN SDGs) as well as the issuance of the Task Force on Climate‐Related Financial Disclosures (TCFD) recommendations, our research reflects the uptake of these guidance documents by both mature and new reporters. Our analysis suggests that challenges persist—processes and progress often fail to reach investors as they are “lost in translation” when issued through third‐party ESG information providers, and reporters are also pressured to respond to a myriad of requests for information from rating and reporting agencies. Nevertheless, we note that Canada has new reporting sectors that must mature to survive the scrutiny of the markets and also hope that stock markets will respond to the recent announcement by the 181 CEOs of the U.S. Business Roundtable, who committed to lead their companies for the benefit of all stakeholders—customers, employees, suppliers, communities, and shareholders. Overall, we believe that our research will provide food for thought for companies interested in continuous improvement. AMÉLIORER L'INFORMATION SUR LE DÉVELOPPEMENT DURABLE AU CANADA : RAPPORT 2019 SUR LES PROGRÈS RÉALISÉS Les auteurs étudient les progrès accomplis par les sociétés canadiennes les plus importantes dans la communication d'informations environnementales et sociales ainsi que d'informations sur la gouvernance (informations ESG). Compte tenu de l'instauration des normes de la Global Reporting Initiative (GRI) et des objectifs de développement durable (ODD) des Nations Unies ainsi que de la publication des recommandations du Groupe de travail sur l'information financière relative aux changements climatiques (GIFCC), leur étude rend compte de l'adoption de ces documents de référence par les déclarants d'expérience aussi bien que les nouveaux déclarants. L'analyse des auteurs semble indiquer que des difficultés restent à surmonter — il est fréquent que l'information relative aux processus mis en place et aux progrès accomplis se « perde dans la traduction » et ne parvienne pas aux investisseurs lorsqu'elle est générée par l'intermédiaire de fournisseurs externes d'informations ESG, et les déclarants se voient par ailleurs contraints de répondre à une foule de demandes d'informations provenant des agences de notation et de publication d'information. Les auteurs notent toutefois que le Canada pratique la communication d'informations dans de nouveaux secteurs qui doivent parvenir à maturité pour résister à l'examen minutieux des marchés, et ils espèrent également que les marchés boursiers réagiront à l'annonce faite récemment par les 181 chefs de direction de la US Business Roundtable qui se sont engagés à diriger leurs sociétés dans l'intérêt de toutes les parties prenantes — clients, employés, fournisseurs, collectivités et actionnaires. Globalement, les auteurs croient que leur étude alimentera la réflexion dans les sociétés qui s'intéressent à l'amélioration continue.

Suggested Citation

  • Charles H. Cho & Kathrin Bohr & Tony Jaehyun Choi & Katharine Partridge & Jhankrut Mukesh Shah & Ada Swierszcz, 2020. "Advancing Sustainability Reporting in Canada: 2019 Report on Progress," Accounting Perspectives, John Wiley & Sons, vol. 19(3), pages 181-204, September.
    • Handle: RePEc:wly:accper:v:19:y:2020:i:3:p:181-204
    DOI: 10.1111/1911-3838.12232
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    References listed on IDEAS

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    1. Thomas A. Tsalis & Maria Terzaki & Dimitrios Koulouriotis & Konstantinos P. Tsagarakis & Ioannis E. Nikolaou, 2023. "The nexus of United Nations' 2030 Agenda and corporate sustainability reports," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 784-796, April.
    2. Paola Demartini & Claudia Pagliei, 2023. "Can we trust ESG Ratings? Some insights based on a bibliometric analysis of ESG data quality and rating reliability," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2023(2 Suppl.), pages 161-187.
    3. Edith Johana Medina-Hernández & María José Fernández-Gómez, 2024. "Multi-way Analysis of the Gender Dimension of the Sustainable Development Goals," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 172(2), pages 517-541, March.
    4. Ali Meftah Gerged & Rami Salem & Eshani Beddewela, 2023. "How does transparency into global sustainability initiatives influence firm value? Insights from Anglo‐American countries," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4519-4547, November.
    5. Nadia Gulko & Catriona Hyde, 2022. "Corporate perspectives on CSR disclosure: audience, materiality, motivations," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 19(4), pages 389-412, December.

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