Experts Say IT Trend May Drive CSR into Financial Reporting

October 28th, 2008

This from Environmental Leader today: “The Global Reporting Initiative’s creation of an extensible business reporting language taxonomy for the many indicators itemized in its sustainability framework could automate sustainability reporting in much the same way that the SEC believes XBRL will aid the production of financial reports,” according to CFO.com.

This development could even drive a new trend that combines standard financial data with sustainability data in a single annual report. A handful of companies already do this, according to CFO. Eric Israel, a managing director at KPMG, believes more will follow.

“There is a serious need for IT support to make this happen,” Israel says. “It’s missing now, but as expectations change and sustainability reporting becomes less about PR and more about satisfying investors’ need for data, more automation will become essential.”

Half of the S&P 500 released Corporate Social Responsibility reports last year, according to SIRAN, the Sustainable Investment Research Analyst Network.

Corporate decision makers would be well advised to consider making investments in CSR information management software now. The pressure is on. Companies that delay will find they are unprepared when CFOs will be accountable for CSR reporting in the future.

Tags: corporate social responsibility csr financial reports global reporting initiative kpmg siran sustainability reporting sustainable investment research analyst network

Entry Filed under: Sustainability, Corporate Responsibility, Corporate Governance, EHS/HSE Technology, Software Development, Governance, Risk and Compliance (GRC)