ACCA says sustainability reporting can boost growth in UK and China

The Association of Chartered Certified Accountants (ACCA) has said faster adoption of sustainability reporting and assurance frameworks could support economic growth in both the UK and China.

The accounting body said that improving the quality, coherence and credibility of sustainability reporting can facilitate trade and investment flows between the two countries.

After research and consultation in both markets, the ACCA also urged regulators and policymakers to accelerate progress while keeping implementation practical.

It recommended setting realistic expectations, issuing clearer guidance and adopting phased timelines so that companies can build capability and reduce compliance uncertainty and cost.

ACCA chief executive Helen Brand said: “Regulators and policymakers can strengthen corporate uptake by providing clear guidance, support with practical implementation and promoting the use of digital tools.

“By setting out a transparent road map with defined milestones, organisations could plan, align and build capacity while reducing uncertainty and cost.

“Assurance providers would be helped by regulators providing clear terminology, expectations and scope in order to build confidence in the market. The report says the assurance market should ‘operate under the supervision of an appropriate oversight body to enhance credibility and trust’.”

The ACCA report draws on insights gathered from a roundtable that brought together UK and China stakeholders including academia, the accountancy and assurance professions, corporates in both jurisdictions, financial institutions, government and regulators.

It identifies three main hurdles: a shortage of skills and capability to analyse sustainability data; the breadth and diversity of sustainability topics; and difficulties in linking sustainability and financial information.

Both the UK and China back the work of the International Sustainability Standards Board and are using the International Auditing and Assurance Standards Board’s ISSA 5000 as a basis for their sustainability assurance standards.

Comparing the two countries’ approaches to sustainability rules and disclosures, the report urges minimal deviation from international standards.

ACCA Europe, Eurasia, the Americas, Middle East (EEMA) and UK Policy and Insights regional lead Joe Fitzsimons said: “The work underlines how the UK and China share the same challenges in the development and implementation of sustainability disclosure and assurance standards.

“We are at a critical juncture globally with sustainability reporting and assurance and we hope this report will make a significant contribution in helping both countries to find the right road.”

"ACCA says sustainability reporting can boost growth in UK and China" was originally created and published by The Accountant, a GlobalData owned brand.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.