Corporate reporting has taken on a green hue in recent years as companies strive to better communicate their sustainability strategies to investors and other stakeholders. Today, the Carbon Disclosure Project (CDP), International Integrated Reporting Council (IIRC) and the Climate Disclosure Standards Board (CDSB) announced an alliance to hasten the transition to a sustainable business model across the economic landscape.

The document the two organisations collaborated on, Memorandum of Understanding, highlights how integral the use and depletion of natural resources is to integrated reporting.

Paul Simpson, CDP CEO says, “CDP operates on the principle that capital markets need high quality information on corporate impacts on carbon, water and forests. Partnering with the IIRC is a natural step for us as we work to catalyse the adoption of this data into mainstream filings. Both organizations will work to promote the global harmonization and clarity of corporate reporting requirements in ways that drive consistency and comparability. This will improve the effectiveness of corporate reporting practices, benefiting companies and investors alike.”

Integrated reporting has not fully saturated into the ranks of corporate reporters worldwide, but it is making headway as companies realise the importance of sustainable business to their stakeholders.