connectivity_-_roundtable_slides_25_april_2025_-_website.pdf

Keypoints:

Illustrations of Connectivity

1. Equinor's EU Taxonomy reconciliation: shows how to reconcile mandatory and voluntary KPIs, highlighting different reporting boundaries between financial statements and sustainability reports.
2. Grupa Azoty's water pollution dispute: illustrates the challenges in connecting information between financial statements and sustainability reports when dealing with environmental disputes.
3. Ørsted's contingent liabilities and provisions: demonstrates the importance of transparency in disclosing potential environmental liabilities.
4. EFRAG's reconciliation table: shows how to reconcile mandatory Capex KPIs, highlighting different reporting boundaries between financial statements and sustainability reports.

Practical Considerations of Achieving Connectivity

1. Constraints and challenges: preparers face difficulties in ensuring connectivity due to reporting boundaries, different levels of aggregation, materiality judgments, and more.
2. Enforcement and assurance constraints: lack of harmonized standards and limited resources for enforcement bodies hinder the connection process.
3. Improving connectivity: adopting good practices, such as using a reconciliation table or providing detailed explanations, can facilitate the connection of information between financial statements and sustainability reports.

Questions

1. Suitability of illustrations: panellists discuss whether the provided illustrations are suitable for achieving connectivity.
2. Additional information needed: panellists suggest additional information that could be included in each illustration to enhance connectivity. 3-5. Practical considerations: panellists highlight constraints, challenges, and enforcement limitations when preparing financial reports with sustainability reporting, as well as good practices to improve connectivity.