GAA releases first report of its connectivity in corporate reporting series

The Sustainability Working Group of the Global Accounting Alliance (GAA) has released its first report in a new series examining the role of connectivity in corporate reporting.

The report provides a practical introduction to connected reporting, explaining why investors, lenders, regulators and boards increasingly expect clear links between sustainability-related disclosures and financial statements. It explores the concept of connectivity, the benefits of coherent reporting, the common causes of disconnects between climate-related disclosures and financial reporting, and the governance, controls, processes and cross-functional collaboration needed to support connected reporting.

The report also examines how connectivity is embedded in major reporting frameworks, including the IFRS Sustainability Disclosure Standards, IFRS Accounting Standards, European Sustainability Reporting Standards (ESRS) and Global Reporting Initiative (GRI) Standards. Through examples and discussion of key accounting areas, it demonstrates how climate-related risks, opportunities, assumptions, commitments and targets can influence financial statement judgements, estimates, measurements and disclosures, while highlighting the central role of accounting professionals in delivering connected reporting

The report may be accessed here.