By Tariro Mutizwa, ACMA, CGMA, Regional Vice President – Africa, at AICPA & CIMA, together as the Association of International Certified Professional Accountants
With up to 90% of a company’s value now resting in intangible assets, it seems clear that we can no longer manage businesses the ways we managed them in the past. In an ever-changing and complex business environment, we can no longer solely focus on financial data to assess business performance, drive long-term strategies, and generate sustainable value.
As a consequence, corporate reporting itself is changing. We are seeing companies move from strictly financial reporting to a more integrated approach, which includes an organisation’s non-financial information such as its ESG data. A study from AICPA & CIMA in partnership with the International Federation of Accountants found that 95% of companies reviewed report some level of sustainability information.
Groups, such as customers, workforce, society, governments, and investors, all demand greater organisational transparency beyond the traditional financial metrics. ESG is fast becoming the lens through which an organisation is judged.