Markets should reward firms with sustainability reports

The Association of Chartered Certified Accountants (ACCA) was stated in a new report that companies in Asean, which produce sustainability reports, outlining the impact their activities are having on the environment, should be rewarded by markets. Furthermore, steps should be taken by governments to toughen existing laws and rules to ensure more companies publish these reports.ACCA commissioned CSR Asia to produce a report, entitled The Rise of the Report and the Regulator, to look into sustainability reporting among selected Asean countries and the response from stakeholders. It recommends that further studies be undertaken to demonstrate the benefits of reporting to other organisations.

The report also calls for companies to be given support to help them comply with improved existing disclosure requirements. Moreover, it recommends support for organisations which monitor reports to enable them to ensure that adequate checks and balances are in place and that the benefits of using internationally accepted reporting guidelines need to be communicated.

According to the Edge Malaysia, the report drew extensively on information provided by CorporateRegister.com, and focussed on companies which produce sustainability reports in Malaysia, Indonesia, the Philippines, Singapore and Thailand.

The report stated that more than120 companies are reporting — or have reported — on sustainability issues in the past decade. It predicts that not only will the number of companies reporting increase, but that the quality of reporting will improve.