Accounting Body Backs Highlighting ESG in Management Commentary

Global accounting rulemakers Wednesday voted in favor of requiring companies to feature sustainability issues more prominently in the management commentary section of their annual reports.

Twelve of the 14 members of the International Accounting Standards Board voted to have companies highlight environmental, social, and governance issues in the narrative section of their reports intended to provide investors with management’s views on factors that could affect financial performance.

The IASB in June decided to press ahead with updating the management commentary guidelines despite the lack of involvement from its sister body, the International Sustainability Standards Board. The project had fallen off ...