News Highlights
Human progress and economic growth have come at a heavy environmental cost, pushing natural systems toward collapse. To address this, the International Sustainability Standards Board has introduced IFRS S1 and IFRS S2, new global standards that guide companies in reporting sustainability and climate-related risks in financial terms. These standards aim to help investors understand how environmental issues affect long-term business value and performance. While adoption is still voluntary in Bangladesh, regulators are reviewing the frameworks, and alignment is likely in the future. With severe pollution, unsafe water, and weak environmental controls affecting millions, the article stresses that businesses must take responsibility. Early adoption of sustainability reporting is presented as a necessary step to protect both the economy and the environment.
Accountable for the Environment
– Written by, Co-founder and CEO of Accfintax
This world shelters more than 8 billion people but is also home to nonillions of other lifeforms, forming countless ecosystems. Humans, with the power to think and reason, have evolved into the dominant species. We rose above others by breaking natural food chains, using our brains to learn, create tools, and pass down knowledge across generations. This transformed survival into civilisation, culture, and control over nature.
With this control came resource extraction and then the economy, introducing trade, structure, and the pursuit of wealth. Over millennia, this drive has led to unsustainable exploitation of natural resources, pushing ecosystems close to collapse. Scientists are sounding the alarm. It is time for everyone to act with responsibility.
In June 2023, the International Sustainability Standards Board (ISSB), under the IFRS Foundation, introduced two new reporting standards, IFRS S1 and IFRS S2. These help companies disclose sustainability and climate-related issues in ways that matter to investors. The aim is to show how such issues can affect financial performance, cash flow, and long-term business value.
These standards apply to annual reports starting on or after January 1, 2024, though early adoption is encouraged. While not mandatory worldwide, countries such as the UK, Canada, and Nigeria are moving towards adoption. Initially, they will apply to listed companies, large public-interest entities, and firms raising capital from markets. As more regulators adopt them, these may become the global benchmark for sustainability reporting.
Read the full original column by Ahmed Humayun Murshed in The Daily Star:
🔗 Accountable for the Environment