Navigate to:
13 Mei 2022 - Lainnya
IAI in collaboration with IFAC and the Indonesia Chamber of Commerce and Industry (KADIN) successfully hosted an international webinar on “Optimizing Sustainability Governance through a Single Set of High-Quality Global Sustainability Reporting Standards”, the first of three side events to be organised as part of the B20 Indonesia activities for Indonesia’s G20 Presidency. Featuring international speakers, the webinar was attended by 2,150 registered participants from 31 countries.
President of IAI, Prof. Mardiasmo urged leaders of G20 countries and the global business community to be more active in promoting sustainable governance in business, to support Environmental, Social and Governance (ESG) initiatives. Climate change has become a comprehensive problem that continues to affect global life and recognised as one of the most fundamental issues under Indonesia's G20 Presidency. The accountancy profession must play its role to contribute to global efforts to reduce carbon emissions, among others through introduction of a globally accepted sustainability reporting.
Chair of the B20 Indonesia Shinta W. Kamdani considers sustainability reporting important for businesses. This report, she said, shows the business community's support for global efforts on climate change. According to Shinta, efforts to limit global warming to 1.5 degrees Celsius, achieve an economy with net zero emissions, end dependence on fossil fuels, and reduce climate impacts on society, require a systematic and high-quality inspection and reporting system.
Sustainability reporting would also help businesses to evaluate their adaptability to economic transformation. The world is anticipating changes in business supply and demand, capital allocation and expenditure, production costs, business models and governance due to a massive green transformation. A sustainability report will help the business to reflect on its business strategy, about what went wrong and what was done right. Especially with high quality reporting standards, businesses will be well equipped with a sizable big picture.
Equally important, continuous reporting will increase business presence among customers. Citing a recent study by the IBM Institute for Business Value, Shinta said that sustainability has reached a tipping point where consumers are increasingly embracing social and environmental causes in their consumption. Six of consumers are willing to change their shopping habits to reduce their environmental impact and more than 70 percent will pay more for sustainable brands and products.
Chairman of the B20 Indonesia Integrity & Compliance Task Force, Haryanto Budiman said that the Task Force has two main policy actions related to sustainable reporting. The first is to improve sustainable governance measures where it recommends the leaders of the G20 to support standardized sustainability measures in compliance efforts for businesses in various sectors. The initiative also includes various emphasis on promoting sustainability measures.
The second, optimizing the disclosure and monitoring aspects of sustainable governance compliance. According to Haryanto, this point strongly emphasizes the G20 countries to support ongoing efforts to promote standardized and globally accepted sustainability reporting guidelines, the application of integrated reporting practices between financial and non-financial performance, initiatives in providing assurance on the reports that have been determined; and socialization efforts in the regions.
Prof. Mardiasmo said that key stakeholders such as IFAC and the IFRS Foundation, as well as G20 leaders, have taken action steps to achieve solutions that can be provided, especially from the accounting profession. In November 2021, the IFRS Foundation announced an initiative to establish the International Sustainability Standards Board (ISSB) which will develop a comprehensive global baseline as a high-quality disclosure standard to meet the needs of investors.
The fact that the establishment of the ISSB is under the governance structure of the IFRS Foundation where the International Accounting Standards Board (IASB) operates as a standard setter, further highlights the important role of IAI which is currently mandated with a responsibility to develop the Indonesian Financial Accounting Standards, to lead the implementation of the ISSB initiative. Therefore, in December 2020 IAI has formed the IAI Comprehensive Corporate Reporting (CCR) Task Force which consists of multi-stakeholder members in Indonesia including regulators, financial report preparers, and accounting professional organizations.
Chairperson of IAI's CCR Task Force, Rosita Uli Sinaga highlighted how the Task Force aims to promote and accelerate the implementation of high-quality sustainability reporting standards that are convergent globally. Mirroring what the IFRS Foundation did to amend its Constitution, IAI's National Council also plans to revise IAI's Article of Associations by adding a new body in the form of a sustainability reporting standards board under IAI, which will be approved at the IAI Congress in December 2022.
About IAI
The Institute of Indonesia Chartered Accountants or Ikatan Akuntan Indonesia (IAI) is the recognized Professional Accountancy Organization (PAO) in Indonesia. Established on December 23, 1957, IAI continues to serve and develop the accountancy profession in the country through among others, establishment of the Chartered Accountant (CA) Indonesia qualification and other professional accountancy certifications, continuous education and training, and standard-setting activities.
IAI is home to more than 33,000 Indonesian accountants from different backgrounds; public accountants, educators, private (management) and public (government) sector accountants, tax, and forensic accountants.
The Institute is recognized as a co-founding member of both the ASEAN Federation of Accountants (AFA) and the International Federation of Accountants (IFAC). IAI is committed to implement IFAC’s standards as the best practice in improving the quality of the accountancy profession in Indonesia.
Email: iai-info@iaiglobal.or.id
Website: www.iaiglobal.or.id
Facebook: https://www.facebook.com/IKATAN-AKUNTAN-INDONESIA-51110098402
Instagram: https://www.instagram.com/ikatanakuntanindonesia/
Twitter: https://twitter.com/IAINews