Business reporting that focuses more on threats than potential gains may be holding back innovation and finance flows, according to new research from the Association of Chartered Certified Accountants (ACCA).
The study looked at how business leaders, especially finance professionals, handle opportunities in reporting while balancing concerns over commercial sensitivity, organisational readiness and stakeholder demands.
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Researchers say humans’ tendency to prioritise downside risk over opportunities is clearly visible in corporate reports and is being heightened by geopolitical and geoeconomic volatility.
They warn that this imbalance can restrict investment and limit access to funding needed for innovation and for building “resilient, sustainable business models”.
The report aims to spark debate on opportunity reporting, a subject it describes as relatively overlooked, and to inform leaders, organisations and professional accountants.
It concludes that a more balanced treatment of risks and opportunities is essential when considering factors that could reasonably affect an organisation’s outlook.
The findings place opportunities at the junction of strategy, sustainability and capital allocation.
Organisations, it says, should first build internal alignment and confidence before communicating externally.
The research also stresses that linking sustainability and financial data with long-term value and resilience depends on collaboration, joint development of approaches and moving beyond a compliance-only focus.
ACCA Sustainability Corporate Reporting Insights head Hsiao Mei Chow said: “Business leaders, professional accountants and organisations must carefully tailor the timing of opportunity communication to their respective unique circumstances – and curate decision-useful information that safeguards stakeholders’ trust while protecting competitive advantage.”
Participants called for policymakers and practitioners to work together on a shared definition or criteria for “opportunity”.
Greater consistency, they argued, would support more comparable reporting across sectors and jurisdictions as corporate reporting evolves.
Last month, the ACCA’s Global Talent Trends survey revealed that accountants are playing a pivotal role in spearheading organisational sustainability initiatives.
