BUS211 Sustainability Reporting

We have a long history of reporting financial data, going all the way back to when Luca Pacioli developed the double-entry bookkeeping methodology in 1494. Common accounting reporting standards today make it relatively easy to compare the financial statements of one business with another.

However, the financial accounts mainly report on the internalities, i.e. what is found inside the businesses such as wages, cost of goods, rent etc. It says little about how the business interacts with its surroundings - the externalities. This contributes to the fact that many businesses today make decisions based on only part of the picture. The short-term perspective usually wins.

No businesses operate in isolation. On the contrary, they affect both climate, nature and social conditions, and the business's own ability to make long-term earnings is also negatively affected by changes in climate, nature, and social conditions.

In order for stakeholders to be able to make sound long-term decisions, it is therefore important that the reporting shows the whole picture of the business, both internalities and externalities.

Milton Friedman's doctrine from 1970, that "The Social Responsibility of Business is to Increase Its Profits" stands for failure. In line with the increased awareness among consumers of climate change and the need for an adjusted course, the expectations that businesses show a greater social responsibility as a natural part of business management.

Investors today demand information on sustainability in order to assess various risk factors such as negative impact on the environment, reputation and financial risk. This includes the influence of partners, suppliers, and customers throughout the value chain. Companies that can document green business development with good sustainability reporting stand to gain competitive advantage. A healthy economy and good sustainability reports also contribute to a positive reputation and the building of stronger customer relationships, they become more attractive in the battle for the best minds, more easily attract favourable funding and will more easily satisfy increasingly strict requirements and regulations.

Upon completion of the course, the candidate will possess the following knowledge, skills and general competencies:

In-depth knowledge of why the green shift is on the agenda and what opportunities it can provide for businesses.

• Good understanding of the concept of integrated reporting
• Insight into the development of laws and regulations
• Knowledge of the most important international reporting standards, regulations and reporting requirements related to sustainability and ESG
• Insight into how sustainability reporting contributes to the development of a company's strategy.
• Structuring a process for applying sustainability reporting as part of strategy implementation in an organisation
• Carry out appropriate reporting of sustainability data in accordance with current legislation and EU directives.
• Be able to use integrated reporting in practice