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Disclosing impacts on natural, social & human capital in financial statements

First published by Capitals Coalition.


Public calls to redefine capitalism are becoming more common and this paper is being released against exciting developments in non-financial reporting. The International Financial Reporting Standards (IFRS) Foundation has released proposals for a Sustainability Standards Board and the European Financial Reporting Advisory Group (EFRAG) has released its recommendations to the European Commission for the elaboration of possible EU sustainability reporting standards. Whilst these reports highlight the need to improve non-financial reporting, the possibility that the approach to financial reporting also needs to develop should not be forgotten and is the focus of this paper.





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