Connectivity between the sustainability report and the financial statements
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The sustainability report and financial statements
23 July 2026
That is the title of the article written by Leo van der Tas and Kees Roozen voor the Tijdschrift voor Jaarrekeningenrecht (issue 2, April 2026) of the publisher Den Hollander. With the introduction of the CSRD and ESRS, this topic is becoming increasingly important, as it connects sustainability opportunities and risks with the financial reality reflected in the financial statements. During European outreach sessions users and stakeholders report they see this more and more:
- ambitious climate and sustainability targets in the management report,
- but little or no (visible) financial impact of those targets in the financial statements.
The article demonstrates that connectivity is more than simply including cross‑references. It is about:
- one coherent narrative covering strategy, risks and performance;
- consistent use of assumptions and data;
- explaining why sustainability risks do—or do not yet—translate into effects in the financial statements.
Differences between the two reports may arise (different materiality, time horizons and consolidation scopes), but precisely for that reason it is important to explain those differences. The European Financial Reporting Advisory Group EFRAG ) has published a Discussion paper Connectivity, which has been consulted publicly until the end of June 2026.
The article is in Dutch, but if you wish to read the whole article you can read it below and for a summary please click here.
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