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International Accounting
 

Integrating sustainability factors into corporate financial reporting in the modern ESG agenda context. Part 2

Vol. 27, Iss. 6, JUNE 2024

Received: 8 April 2024

Received in revised form: 11 April 2024

Accepted: 25 April 2024

Available online: 17 June 2024

Subject Heading: INTERNATIONAL STANDARDS OF ACCOUNTING AND REPORTING

JEL Classification: M40, M41

Pages: 606–625

https://doi.org/10.24891/ia.27.6.606

Irina V. ZENKINA Financial University under Government of Russian Federation, Moscow, Russian Federation
zenkina_iv@mail.ru

https://orcid.org/0000-0003-1020-4050

Subject. This article discusses innovations and trends in the development of corporate reporting standardization within the framework of the IFRS Foundation project and the initiative of the European Financial Reporting Advisory Group.
Objectives. The article aims to reveal the essence of the main innovations and characterize the prospects for improving corporate financial reporting in the context of the development of ESG Standards by the International Sustainability Standards Board of the IFRS Foundation and the Task Force of the European Sustainability Reporting Standards Project.
Methods. For the study, I used analysis and synthesis, comparison, and generalization.
Results. Based on an analysis of the ESG agenda modern realities, the article identifies prerequisites and trends in the development of corporate reporting standardization in relation to the integration of sustainable development factors into financial reporting, and determines the impact of innovations of the two systems of sustainability reporting standards being developed on the informative and analytical value of corporate reporting.
Conclusions and Relevance. The need to overcome the limitations and shortcomings of the GRI standards predetermined the development of two new systems of standards in the context of the ESG agenda modern realities. The International Sustainability Standards Board of the IFRS Foundation is developing standards designed to become a global framework for the disclosure of information on sustainable development, focused on the needs of investors and financial markets. The European Financial Reporting Advisory Group is developing European Sustainability Reporting Standards, which should cover a wide range of topics to meet the information needs of various stakeholders. New systems of ESG reporting standards are aimed at generating complete, coherent, comparable and verifiable information in the field of sustainable development. The research results obtained will contribute to the further promotion of sustainability reporting, improve corporate financial reporting practices by incorporating the impact of sustainability issues on value creation, and enhance stakeholder awareness and decision-making in a comprehensive and ESG-informed manner.

Keywords: Sustainability Reporting Standards, International Sustainability Standards Board, ISSB, European Financial Reporting Advisory Group, EFRAG, Cross-Cutting Standards, Topical Sector-Agnostic Standards, Sector-Specific Standards

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