Sustainability’s Spot in Company Filings Divides Global Board

Members of a global sustainability reporting standard-setter failed to agree on whether to direct companies to include such disclosures in their management commentary.

The commentary is a narrative section of the annual report that provides context for financial results with a discussion of company strategy, for example. The International Sustainability Standards Board had suggested this section as a suitable location for companies to incorporate reporting on issues such as business risks from climate change.

The board was due to vote Thursday on whether to make this a requirement. But it postponed the vote after some board members objected that there ...