ACCA and EY jointly urge action across 10 areas to strengthen sustainability reporting capabilities

The Association of Chartered Certified Accountants (ACCA) collaborated with Ernst & Young Advisory Services Limited (EY) to publish a report titled Sustainability reporting: Track your progress - GBA insights. Survey findings reveal that although there is regulatory momentum for robust sustainability reporting, many organisations remain in the early stages of building the foundational capabilities needed. Against this backdrop, the report calls on professional accountants and organisational leaders to take decisive action across 10 interconnected areas.

Global sustainability reporting requirements are becoming increasingly challenging for organisations, as the comprehensiveness of different reporting guidelines and standards, such as CSRD, ISSB, GRI and others, creates ambiguity, making it difficult for companies to maintain clarity and consistency in their disclosures. Also, the growing complexity contributes to the rising need to address the diverse expectations of different stakeholders. While organisations attempt to cater to varying information needs, a 'translation gap' can arise from mismatched material topics, imprecise prioritisation of material topics, or inconsistent sustainability reporting. As a result, the survey shows that 41% of global respondents and 36% of GBA participants view the knowledge gap as a key challenge, while another 35% globally and 27% in the GBA point to the immaturity of the sustainability reporting ecosystem. Moreover, 33% of global respondents and 31% of GBA participants indicated that understanding the needs of different stakeholders poses a barrier.

The study also identified differing motivations across regions: while both GBA and global participants agree that disclosure is primarily driven by compliance needs and the desire to better understand financial impacts, GBA respondents additionally view risk management as a key driver of sustainability reporting, whereas global respondents expressed greater interest in obtaining broader non-financial insights through sustainability reporting. The survey further shows that 44% of global respondents place their focus on strategic planning, reflecting an increased emphasis on driving sustainable transformation from the top down, while 36% of respondents in the GBA prioritise assuring sustainability-related information, suggesting that quality, credibility, and compliance are more pressing concerns in this region.

The findings illustrate a divergence in focus across markets and a growing dual demand for professional accounting talent in sustainability strategy development and information assurance. The report calls on professional accountants and organisational leaders to take decisive action across 10 interconnected areas, including harnessing the power of regulation, optimising stakeholders' roles, leading the change and acting now, as follows:

1. Move beyond compliance. Create sustainability information for compliance and use it to become more resilient and thrive.
2. Prioritise globally relevant standards. Start with standards relevant to the jurisdiction and to key stakeholders along the value chain.
3. Leverage regulatory reporting ecosystems. Maximise use of available support, guidance, and incentives while being mindful of penalties.
4. Know your business end-to-end. Identify the key resources needed and who provides them. Seize opportunities and manage risks threatening the availability or quality of these resources.
5. Bake sustainability into stakeholder management. Exchange insights through regular two-way communication with key stakeholders, including policy makers and regulators.
6. Build agile systems focused on the end users that better connect sustainability and financial data to meet both internal and external users' needs.
7. Collaborate boldly across industries and regions to drive efficiency and effectiveness. Share expertise, build capacity, minimise blind spots, and continually improve together.
8. Champion sustainability. Senior leaders and professional accountants need to recognise the importance of sustainability and drive the necessary conversations and actions.
9. Build a flexible resourcing model to facilitate access to relevant skills as and when needed.
10. Be proactive. Start now, seize opportunities and build momentum.

Wilson Cheng, Chairman of ACCA Hong Kong, said, 'Nowadays, sustainability expectations are becoming more detailed, and companies are building access to specialised expertise to uphold higher standards, ensuring data quality and aligning sustainability accounting methods. Accountants are well positioned to support these efforts, leveraging their strengths in compliance, internal controls and data governance to establish reliable data collection and management systems for sustainability reporting. By connecting financial and non-financial information, accountants help organisations identify and develop meaningful, purpose-driven metrics and strengthen how data is managed. This enables companies to go beyond basic reporting and manage sustainability performance in a more proactive, structured, and effective way.'

Ee Sin Tan, EY Hong Kong and Macau Climate Change and Sustainability Services Partner said: 'Sustainability reporting is entering a new phase in which organisations are not merely meeting regulatory requirements but are increasingly integrating sustainability considerations into decision-making to create both financial and non-financial value over the long term. As the sustainability landscape continues to evolve, collaboration with regulators, industry peers, sustainability experts and accountants can help organisations better identify emerging risks and opportunities. By drawing on insights from the broader sustainability ecosystem and taking a proactive approach, organisations can navigate the growing complexity of sustainability reporting while building resilient systems that enable them to meet stakeholders' expectations.'

Read the full report, Sustainability reporting: Track your progress - GBA insights, for the complete findings and recommendations.

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