In 2021, at COP26, the International Accounting Standards Board announced it would create a standard for this reporting.

It wants to integrate sustainability reporting with traditional IFRS accounting. Should firms be compelled by regulators to disclose their impact on the climate in their corporate reporting? Investors value convergence in sustainability reporting standards, but they are facing stiff opposition both in the US and Europe – even while developing economies embrace the new regime.

Lucrezia Reichlin of the London Business School and CEPR talked to Tim Phillips on the progress to sustainability standards, the scope of reporting, who wants it, and who’s objecting to it.