The Importance of Financial Reporting Ethics and Its Development
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FEB UGM held a series of Global Summer Week 2023 events from 5-18 July 2023. One of the speakers in this program was Dr. Frendy, a professor from Nagoya University of Commerce and Business, Japan. He raised the theme "Ethical Corporate Reporting: International Regulations, Standards, and Frameworks" in the lecture, which was delivered in two days. In the first lecture, Thursday (6/07), Dr. Frendy discussed the topic "International Regulatory Landscape". Meanwhile, in the second lecture on Friday (7/07), the topic he presented was "International Reporting Standards and Framework".
In the first lecture, Dr. Frendy explained the importance of ethical financial reporting, which involves calculating environmental aspects, which have now become regulations and implemented in various countries. At least two methods can be used, namely the Triple Bottom Line and Environmental Social Government (ESG). Furthermore, Frendy emphasized that several consequences can arise from the lack of environmental considerations in financial reporting. Then, Frendy explained about accelerating ESG regulation and why it is essential.
Dr. Frendy also explained the development of ESG financing in Asia. According to the latest Bloomberg report, ESG funds in Asia will double their market share by 2022, despite political and regulatory tensions slowing the flow of funds for ESG investments in the United States. Frendy also provides an overview of the regulatory differences in China, the United States and India and the benefits and drawbacks that cross-border investors may consider when selecting companies to prepare reports based on ESG contracts.
In the second lecture, Dr. Frendy opened the presentation by explaining the development of sustainable reporting. Next, Dr. Frendy discussed the ESG Framework in Asia. The Corporate Governance and ESG 2023 Survey by AON found that while 58% of companies in Asia-Pacific say ESG is critical to their long-term success, only 29% have developed KPIs for ESG performance. Furthermore, Dr. Frendy explained three global regularity reporting guidelines: GRI, IIRC, and SASB. The lecture was continued with a question and answer session, which was received enthusiastically by the students.
Reportage: Adella Wahyu Praditaa
Watch the full video at https://youtu.be/RChfYa5YxhI
