By Douglas Hileman, FSA, CRMA, CPEA

It’s Sustainability reporting season. Or is it Sustainability disclosure season? Or both? “Reporting” and “disclosure” are often used interchangeably. I suggest that both preparers and users of Sustainability information would be well-served if they understood the difference and did not conflate the two.

Capital markets are key users of Sustainability information; they are accustomed to “reporting” and “disclosure” of financial information. Many functions are involved in preparing and using financial information: Finance, Accounting, Controllers, Audit. These functions understand “internal controls” and other lingo. Preparers of Sustainability information are often elsewhere in the organization: Environmental, Operations, Procurement, Safety, Sustainability, etc. They are not as well versed in the lingo or concepts.
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