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It is also significant to mention the Regulation (EU) 2020/852 of the European Parliament and of

the Council, establishing a framework to facilitate sustainable investment- EU Taxonomy- a
classification system in the EU that lists environmentally sustainable economic activities
(European Commission, 2022).

With regards to reaching the goals of the European Green Deal, and the goal of climate neutral
economy by 2050, the EU plans to adopt EU Corporate Social Reporting Directive (CSRD) which
will replace the Non-Financial Reporting Directive (NFRD). The CSRD goals are public disclosure
of firms sustainability risks and opportunities and its effect on the sustainability, where it should
help reporting become easier to compare and understand, and more cost efficient to produce
sustainability reports (Wollmert, Hobbs, 2022).

In the future, accountants and CFO’s will have more prominent roles in SDGs through information
analysis, optimization of processes and providing help in decision making process (International
Federation of Accountants, 2015, p. 20). Also, audit committees and assurance provider will have
a greater role in sustainability reporting, as they will monitor the effectiveness of systems and

control their setup (Wollmert, Hobbs, 2022).

Communicating sustainability

Firms that are “doing well” want to tell their story, connect and engage on topics of sustainability

with various stakeholders, especially since stakeholders have constantly higher expectations.
Firms have a wide variety of methods on how to engage and communicate transparently and
authentically with their stakeholders on various sustainability topics (Amfori, 2019, p. 4). Besides
formal sustainability reporting, firms can use a number of channels to communicate to
stakeholders their strategy and progress regarding SDGs. Those channels include: corporate

websites, social media channels, events, product and service labeling, market and advertising
(GRI, United Nations Global Compact & WBSCD, 2015, p. 26).
SDG reporting can be based on some of the leading international standards for sustainability
reporting (GRI, UNGC), or specific firms standalone custom report as means of information
disclosure (GRI, United Nations Global Compact & WBSCD, 2015, p. 27). Various frameworks

and documents intend to help firms adjust their activities and impact on society and environment
in line with SDGs (Adams, 2017: 11).
Furthermore, the sustainability reporting should focus on firms major economic, social and

environmental contribution (material issues), whereas communication should use the SDGs
methodology and terminology to more effectivly engage in dialogue with interested parties (GRI,
United Nations Global Compact & WBSCD, 2015, p. 28).

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