OPINION: Coca-Cola did $3bn-worth of environmental damage in 2019, and the negative health impact of Danone’s products was nearly $8bn, reveals a new accounting approach. The time is up for self-serving, inaccurate ESG reporting.
INTERVIEW: Putting a price tag on a company’s social and environmental impact is the only way to demonstrate its true profit and loss, believes Sir Ronald Cohen, who is now focusing on driving forward the next accounting revolution.
Company directors’ reliance on international accounting standards means sustainability issues are currently reported separately, if at all. But there are steps they can take to better meet their legal responsibilities, says our columnist.
The financial accounting system we use today is hurtling towards irrelevance, undermined by the very inequality to which it has contributed. It's time to change how profit is calculated – before it's too late.