Unlocking synergy: EFRAG symposium explores connectivity between financial and sustainability reporting
The EFRAG Symposium at the 2023 EAA Annual Congress was a deep dive into the pressing issue of connecting financial and sustainability reporting. With a roster of insightful speakers, the aim was to discover not just how these two realms could coexist but how they could collaborate to amplify reporting outcomes.
Kicking off the event, Chiara Del Prete, EFRAG’s Sustainability Reporting TEG Chairwoman, and Linda Mezon-Hutter, the IASB Vice Chair, highlighted the paramount importance of grasping the essence of connectivity, addressing user requirements, and delineating the roles of entities like EFRAG and the IFRS Foundation.
A pivotal discussion point centered around technology’s role in bridging the gap between financial and sustainability reporting. While digital reporting, including XBRL, shows promise, it was evident that technology alone couldn’t untangle the connectivity puzzle. The crux lies in standardised terminology and shared concepts across both reporting domains.
XBRL tagging emerged as a critical facet of connectivity. Unlike artificial intelligence, which can lose context, human-driven XBRL tagging guarantees users access all pertinent information. The ideal scenario involves seamless integration, with XBRL tagging happening from the moment data is entered. Currently, however, this isn’t standard practice.
In a nutshell, the symposium underscored the necessity of shared terminology, adaptable systems, and ongoing enhancements to achieve seamless integration between financial and sustainability reporting.
Read the full report here.
