Comparing and Contrasting Financial Reporting to Sustainability Reporting

Financial and sustainability reporting share a similar framework but serve different audiences and goals. Financial reporting focuses on investors, profit maximization, and standardized monetary metrics, with strict disclosure and auditing rules. In contrast, sustainability reporting targets stakeholders, assesses environmental and social impact, and lacks standardized measures and mandatory assurance. Addressing greenwashing, evolving regulations, and reliability challenges can enhance the usefulness and trust in sustainability disclosures.