On-site Valedictory lecture Prof. dr. Ruud G.A. Vergoossen
Professor International Financial Accounting
"Duurzaamheidsverslaggeving: panacee of doekje voor het bloeden?" [In Dutch]
In the European Union, a comprehensive regulatory package is being finalised which will bring about a seismic shift in corporate reporting. In addition to the annual financial reporting, a large part of the business community will also have to report in the near future on – what is called – sustainability matters of business operations.
This sustainability reporting means, among other things, that company boards must indicate how it ensures fair and honest business, how the health and other interests of employees are protected, how (possible) harmful consequences of business activities for the environment are prevented or mitigated and – conversely – how, for example, environmental aspects such as climate change and declining biodiversity, influence the performance and future prospects of the company.
It should also describe existing and potential negative effects occurring in the company's value chain, as well as the measures taken and their results to prevent, remedy or mitigate those effects. In addition to the activities of the company itself, this value chain also includes the activities of the business relations (both upstream and downstream) and the production and supply chains involved.
The ultimate goal of sustainability reporting is to encourage and motivate companies to organize their business activities in such a way that they contribute to a better, sustainable society that takes into account the people and the environment in a broad sense. However, the question is whether that goal will be achieved through sustainability reporting as it will be shaped in the near future. In other words: is sustainability reporting a panacea or the key to achieve a sustainable society or is it just a pacifier or a farce that will make no contribution to it at all?
In addition to answering this question, it is also explicitly discussed whether the auditor who audits the annual financial statements of a company also has a role in the assessment of the sustainability information provided by that company.
