BEST PRACTICES IN CONNECTIVITY OF CORPORATE GOVERNANCE, INTERNAL CONTROL, RISK, FINANCIAL, SUSTAINABILITY, SCIENCE BASED TARGET SETTING REPORTING

BEST PRACTICES IN CONNECTIVITY AND SYNERGY BETWEEN CORPORATE GOVERNANCE, INTERNAL CONTROL FRAMEWORK, RISK MANAGEMENT REPORTING, FINANCIAL REPORTING, SUSTAINABILITY REPORTING, SCIENCE BASED NET-ZERO TARGET SETTING REPORTING AND SOUND EFFECTIVE INTERNAL & EXTERNAL AUDITING

MOTTO: PRESENTLY, ACHIEVING THE SDGs IS, SADLY, FAR AWAY FROM THE SET TARGETS. TERRA AND MANKIND CONTINUES TO BE THE PRISONERS OF FOSSIL FUEL WITH DEVASTATING EFFECTS ON THE ENVIRONMENT, ECONOMY AND PEOPLE'S STANDARD OF LIVING!

ARE WE ARE HEARING THE LAST WAKE-UP CALL????

IT'S OUR RESPONSIBILITY TO FREE OURSELVES, THE ECONOMY AND PLANET EARTH FROM THE MALEFIC DEADLY FOSSIL FUEL TRAP!!?

THINK CLEAN! GO GREEN!????????

INTRODUCTION

CURRENT STATUS IN THE SUSTAINABILITY REPORTING AREA

1. Presently there are very many institutions and organizations (IFRS-ISSB, European Parliament, EFRAG, European Banking Authority, UNEP FI TCFD & TNFD, GRI, IFC, ADB, etc)?that issued directives, standards, guidelines and recommendations in the areas of sustainability reporting which creates confusion among the financial institutions, companies, internal and external auditors, credit rating agencies, investors and other stakeholders.

2. The sustainability and climate changes reporting area is isolated from the financial reporting, risk reporting, audit reporting and rating reporting areas although between all these areas there are obvious connections and inter-dependencies.

STRATEGIC OBJECTIVE:

Setting-up an international task force representing several international institutions and organizations charged with the responsibility of creating a unique standard in the areas of sustainability reporting, financial reporting, risk reporting, internal control, internal audit, external audit and risk rating for companies and financial institutions.

GENERAL STEPS NEEDED:

A. Scan analysis aimed at indentifying similarities, overlappings and redundancies between several standards, guidelines and recommendations in the area of sustainability and climate changes reporting issued by several institutions and organisations in the world.

B. Based on the scan analysis results and conclusions the next phase is to develop a concrete strategic (long-term) and tactical (short-term) plan aiming to achieve the connectivity, synergy, integration and correlation of all guidelines, recommendations and standards related to sustainability and climate changes reporting

C. Creation of a unique all-inclusive sustainability reporting standard accepted worldwide

D. Creation of a unique all-inclusive risk reporting standard worldwide accepted

E. Integration of the unique all-inclusive sustainability reporting standard accepted worldwide with the unique worldwide accepted financial reporting standard (IFRS) and a unique worldwide accepted risk reporting standard

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The scan analysis should cover all the standards, guidelines and recommendations issued by reputableinstitutions and organizations related to the sustainability topic:

1. Sustainable Development Goals (SDGs)?

2. Environment Social Governance (ESG),?

3. Governance Risk Compliance (GRC),

4. Corporate Social Responsibility (CSR),?

5. Science Based Net-Zero Target settings,?

6. Corporate Sustainability Reporting Directive,?

7. EFRAG?

8. UNEP FI TCFD & UNEP FI TNFD

9. Financial Stability Board - TCFD?

10.UNEP FI based sectoral ESG principles-based sustainable financial frameworks, including: 2006: UN PRI - the United Nation supported Principles for responsible investment; ?2012 UN PSI - Principles for sustainable insurance; 2019: the UN PRB - Principles for responsible banking

11. International Finance Corporation's Sustainability Framework

12. International Sustainability Standard Board?

13. GRI?

14. ASCOR?

15. CDP?

16. ISO?

17. European Banking Authority?

18. European Central Bank?

19. Basle Committe on Banking Supervision?

20. Asian Development Bank?

21. Inter American Development Bank?

22. African Development Bank?

23. Canada guidelines on sustainability

24 UK guidelines on sustainability

25. Australia guidelines on sustainability

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1. THE CRITICAL RELATIONSHIP BETWEEN FINANCIAL REPORTING, SUSTAINABILITY REPORTING AND RISK MANAGEMENT REPORTING FOR THE FINANCIAL INDUSTRY

2. THE ROLE AND IMPORTANCE OF THE CONNECTIVITY BETWEEN FINANCIAL REPORTING (IFRS) SUSTAINABILITY REPORTING (ISSB) AND RISK MANAGEMENT REPORTING (BASLE COMMITTEE)

3. THE SYNERGY EFFECT OF FINANCIAL REPORTING (IFRS) SUSTAINABILITY REPORTING (ISSB) CONNECTIVITY AND RISK MANAGEMENT REPORTING (BASLE COMMITTEE)

4. THE NEGATIVE EFFECTS ON INVESTORS GENERATED BY THE LACK OF CONNECTIVITY AND SYNERGY BETWEEN THE FINANCIAL REPORTING (IFRS) SUSTAINABILITY REPORTING (ISSB) AND RISK MANAGEMENT REPORTING (BASLE COMMITTEE)

5. THE POSITIVE EFFECTS ON INVESTORS GENERATED BY THE CONNECTIVITY AND SYNERGY BETWEEN THE FINANCIAL REPORTING (IFRS) SUSTAINABILITY REPORTING (ISSB) AND RISK MANAGEMENT REPORTING (BASLE COMMITTEE) - INVESTOR BENEFITS OF INTEGRATED REPORTING

6. IDENTIFYING, ASSESSING AND PRIORITISING THE THEMES RELATED TO CONNECTIVITY AND SYNERGY BETWEEN THE FINANCIAL REPORTING (IFRS) SUSTAINABILITY REPORTING (ISSB) AND RISK MANAGEMENT REPORTING (BASLE COMMITTEE)

7. BEST PRACTICES REPORTING REGARDING CONNECTIVITY AND SYNERGY BETWEEN THE FINANCIAL REPORTING (IFRS) SUSTAINABILITY REPORTING (ISSB) AND RISK MANAGEMENT REPORTING (BASLE COMMITTEE)

8. DEVELOPING POSSIBLE APPROACHES TO ENHANCE CONNECTIVITY AND SYNERGY BETWEEN THE FINANCIAL REPORTING (IFRS) SUSTAINABILITY REPORTING (ISSB) AND RISK MANAGEMENT REPORTING (BASLE COMMITTEE)

9. THE CRITICAL ROLE OF THE INTERNAL CONTROL FRAMEWORK AND OF ITS TWO COMPONENTS THE INTERNAL AND EXTERNAL AUDIT IN CERTIFYING THE ACCURACY OF FINANCIAL REPORTING, SUSTAINABILITY REPORTING AND RISK MANAGEMENT REPORTING

10. THE POSITIVE EFFECT OF THE FINANCIAL REPORTING (IFRS) SUSTAINABILITY REPORTING (ISSB) AND RISK MANAGEMENT REPORTING (BASLE COMMITTEE) CONNECTIVITY AND SYNERGY ON DETECTING AND COMBATING GREENWASHING. REPORTING STANDARDS' IMPACT ON GREENWASHING

11. THE NEED FOR KPIs EXPRESSING CONNECTIVITY AND SYNERGY OF FINANCIAL REPORTING (IFRS) SUSTAINABILITY REPORTING (ISSB) AND RISK MANAGEMENT REPORTING (BASLE COMMITTEE). INTEGRATED REPORTING KPI

12. IMPACT OF NON-FINANCIAL RISKS ON BANKS' PROFITABILITY AND THE MANAGERIAL GOVERNANCE, INTERNAL AND EXTERNAL CONTROL AND IT REPORTING SOLUTIONS TO SUCCESSFULLY MANAGE THESE RISKS

13. IMPACT OF POLLUTION RISK ON BANK PERFORMANCE - MANAGEMENT OF POLLUTION RISK

14. APPLICATION TO SUSTAINABILITY REPORTING OF THE 5 COMPONENTS AND 17 PRINCIPLES OF THE COSO INTERNAL CONTROL INTEGRATED FRAMEWORK (ICIF)

15. THE ROLE AND IMPORTANCE OF THE SCIENCE-BASED NET-ZERO TARGET SETING STANDARD IN SUSTAINABILITY REPORTING

16. CONNECTIVITY, SYNERGY, COMMON POINTS, DIFFERENCES, INTER-DEPENDENCIES, OPPORTUNITIES AND CHALLENGES OF CORPORATE GOVERNANCE, COSO INTERNAL CONTROL FRAMEWORK, RISK MANAGEMENT REPORTING, FINANCIAL MANAGEMENT REPORTING, SUSTAINABILITY REPORTING, SCIENCE BASED NET-ZERO TARGET SETTING REPORTING, AND INTERNAL AND EXTERNAL AUDIT REPORTING

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1. THE CRITICAL RELATIONSHIP BETWEEN FINANCIAL REPORTING, SUSTAINABILITY REPORTING AND RISK MANAGEMENT REPORTING FOR THE FINANCIAL INDUSTRY

Financial reporting, sustainability reporting, risk management reporting and science-based based target setting reporting are essential components of corporate reporting. These four types of reports are interrelated, and their connection is critical for companies to achieve their long-term sustainability and performance goals. Financial reporting deals with the financial performance and financial position of an organization. Sustainability reporting focuses on a company's environmental, social, and governance (ESG) impacts, while risk management reporting helps organizations identify and mitigate risks that could negatively impact their financial and operational performance. This report will explore the relationship between financial reporting, sustainability reporting, and risk management reporting.

Financial Reporting:

Financial reporting involves the communication of financial information to external stakeholders. Financial reports provide a snapshot of a company's financial position, financial performance, and cash flows. The primary objective of financial reporting is to provide relevant, reliable, and timely financial information that helps stakeholders make informed decisions.

Financial reporting is essential for sustainability reporting and risk management reporting. Financial information provides critical insights into a company's financial health, which is necessary for assessing its overall sustainability. Financial information also helps identify potential risks and opportunities, which are necessary for effective risk management.

Sustainability Reporting:

Sustainability reporting provides information on a company's ESG performance. It is a tool for companies to communicate their sustainability strategies, goals, and progress to stakeholders. Sustainability reporting is becoming increasingly important as stakeholders, including investors, consumers, and regulators, demand more information about companies' ESG performance.

Sustainability reporting is critical for financial reporting and risk management reporting. The ESG impacts of a company can have significant financial implications. For example, a company's carbon emissions could lead to increased regulatory costs, reputational damage, and potential litigation. By reporting on their ESG performance, companies can provide stakeholders with a more comprehensive picture of their financial health.

Risk Management Reporting:

Risk management reporting involves the identification, assessment, and management of risks that could impact a company's financial and operational performance. Effective risk management is critical for the long-term sustainability of a company.

Risk management reporting is closely related to financial reporting and sustainability reporting. The risks identified in risk management reporting can have significant financial implications, which are essential for financial reporting. For example, if a company identifies a risk related to its supply chain, this could impact its financial performance. Effective risk management also involves identifying and mitigating ESG risks, which are critical for sustainability reporting.

Preliminary conclusion:

Financial reporting, sustainability reporting, and risk management reporting are closely interrelated. The critical relationship between these three types of reports is essential for companies to achieve their long-term sustainability goals.?

Financial reporting provides critical insights into a company's financial health, which is necessary for assessing its overall sustainability.?

Sustainability reporting provides information on a company's ESG performance, which is essential for effective risk management.?

Risk management reporting involves identifying and managing risks that could impact a company's financial and operational performance, including ESG risks.?

By integrating these three types of reports, companies can provide stakeholders with a more comprehensive picture of their financial health, sustainability, and risk management practices.

2. THE ROLE AND IMPORTANCE OF THE CONNECTIVITY BETWEEN FINANCIAL REPORTING (IFRS) SUSTAINABILITY REPORTING (ISSB) AND RISK MANAGEMENT REPORTING (BASLE COMMITTEE)

The connectivity between financial reporting (IFRS), sustainability reporting (ISSB), and risk management reporting (Basle Committee) is crucial in promoting transparency and accountability in organizations.?

Financial reporting provides information on the financial performance and position of the company, while sustainability reporting provides information on the environmental, social, and governance (ESG) aspects.?Risk management reporting provides information on the risks and opportunities that the company faces.?

The connectivity between these reporting frameworks enables organizations to provide a comprehensive and integrated view of their operations, risks, and opportunities.

Financial Reporting, Sustainability Reporting and Risk Management Reporting are important aspects of corporate governance.?

Each of these reporting frameworks serves a different purpose, but they are all interconnected, and their integration is crucial for effective corporate decision-making.

?The International Financial Reporting Standards (IFRS) and the International Sustainability Standards Board (ISSB) provide guidelines for financial and sustainability reporting, respectively, while the Basel Committee on Banking Supervision (BCBS) offers guidance on risk management reporting.?

Corporate governance is an essential aspect of modern business, and effective corporate governance requires a robust reporting framework.?

Financial reporting, sustainability reporting, and risk management reporting are three critical components of this framework. Financial reporting is concerned with the presentation of a company's financial performance and position, while sustainability reporting focuses on a company's environmental, social, and governance (ESG) performance. Risk management reporting, on the other hand, is concerned with identifying, assessing, and managing risks that could affect a company's operations or financial performance.

The integration of these three reporting frameworks is crucial for effective corporate decision-making. The purpose of this paper is to explore the role and importance of connectivity between financial reporting (IFRS), sustainability reporting (ISSB), and risk management reporting (BCBS).

Financial Reporting (IFRS):

The International Financial Reporting Standards (IFRS) provide guidelines for financial reporting. These standards aim to ensure that financial statements are transparent, comparable, and reliable. Financial reporting is essential for stakeholders to assess a company's financial performance and position. Financial statements provide information about a company's assets, liabilities, equity, income, expenses, and cash flows.

Sustainability Reporting (ISSB):

The International Sustainability Standards Board (ISSB) provides guidelines for sustainability reporting. These standards aim to ensure that companies report on their ESG performance transparently and consistently. Sustainability reporting is essential for stakeholders to assess a company's impact on the environment, society, and governance. Sustainability reports provide information about a company's environmental impact, social impact, and governance practices.

Risk Management Reporting (BCBS):

The Basel Committee on Banking Supervision (BCBS) provides guidance on risk management reporting. These guidelines aim to ensure that banks and other financial institutions identify, assess, and manage risks effectively. Risk management reporting is essential for stakeholders to assess a company's ability to manage risks that could affect its operations or financial performance. Risk management reports provide information about a company's risk management framework, risk appetite, risk exposure, and risk mitigation strategies.

Connectivity between Financial Reporting, Sustainability Reporting, and Risk Management Reporting:

The connectivity between financial reporting, sustainability reporting, and risk management reporting is essential for effective corporate decision-making. The integration of these reporting frameworks can provide a holistic view of a company's performance, risks, and opportunities. For example, sustainability reporting can provide insights into a company's exposure to ESG risks, which can inform risk management reporting. Financial reporting can provide insights into a company's financial position, which can inform sustainability reporting.

Furthermore, the integration of these reporting frameworks can help companies identify opportunities for value creation. For example, a company that manages ESG risks effectively may be able to reduce costs, enhance its reputation, and attract new customers. Companies that report on their sustainability performance transparently may also benefit from increased investor confidence and access to capital.

In conclusion, financial reporting, sustainability reporting, and risk management reporting are essential components of effective corporate governance. The integration of these reporting frameworks is crucial for effective decision-making, risk management, and value creation. The International Financial Reporting Standards (IFRS), the International Sustainability Standards Board (ISSB), and the Basel Committee on Banking Supervision (BCBS) provide guidelines for financial reporting, sustainability reporting, and risk management reporting, respectively

3. THE SYNERGY EFFECT OF?FINANCIAL REPORTING (IFRS) SUSTAINABILITY REPORTING (ISSB) CONNECTIVITY AND RISK MANAGEMENT REPORTING (BASLE COMMITTEE)

The synergy effect of financial reporting (IFRS), sustainability reporting (ISSB) connectivity, and risk management reporting (Basle Committee) can lead to a more complete picture of a company's performance, risks, and opportunities. This integrated approach can help investors and stakeholders to make informed decisions about a company's financial and sustainability performance and its risk management practices.

The global financial crisis in 2008 highlighted the need for better risk management and transparency in financial reporting. Since then, several reporting frameworks have been refined to address these issues, including the International Financial Reporting Standards (IFRS), Sustainability Reporting (ISSB), and Risk Management Reporting (Basel Committee).?

These frameworks have different objectives but can work together to create a more comprehensive and interconnected reporting system.

International Financial Reporting Standards (IFRS):

IFRS is a set of accounting standards developed by the International Accounting Standards Board (IASB). The standards aim to provide a common language for financial reporting and improve transparency and comparability of financial statements. IFRS covers a wide range of financial reporting issues, including revenue recognition, financial instruments, and leases.

Sustainability Reporting (ISSB):

Sustainability reporting is a form of non-financial reporting that provides information on an organization's environmental, social, and governance (ESG) performance. The International Sustainability Standards Board (ISSB) is currently developing a set of global sustainability standards that aim to provide a consistent and comparable approach to ESG reporting.

Risk Management Reporting (Basel Committee):

The Basel Committee on Banking Supervision is an international organization that develops and promotes regulatory standards for the banking industry. The Committee's Risk Management Reporting framework provides guidance on the reporting of risks and risk management practices.

Connectivity refers to the integration of financial and non-financial information to provide a more complete picture of an organization's performance. By connecting financial and non-financial information, stakeholders can gain a better understanding of an organization's risks, opportunities, and impact on society and the environment.

The synergy effect of these different reporting frameworks is that they can complement each other to provide a more comprehensive and interconnected reporting system. For example, by integrating sustainability reporting with financial reporting, organizations can provide stakeholders with a more complete picture of their performance and risks. By including risk management reporting, organizations can demonstrate how they are managing risks to achieve their strategic objectives.

In conclusion, the synergy effect of financial reporting (IFRS), sustainability reporting (ISSB), connectivity, and risk management reporting (Basel Committee) can create a more robust and effective reporting system. These frameworks have different objectives but can work together to provide stakeholders with a more complete picture of an organization's performance and risks. As organizations continue to face increasing pressure to be transparent and accountable, a comprehensive and interconnected reporting system will become increasingly important.

4. THE NEGATIVE EFFECTS ON INVESTORS GENERATED BY THE LACK OF CONNECTIVITY AND SYNERGY BETWEEN THE FINANCIAL REPORTING (IFRS) SUSTAINABILITY REPORTING (ISSB) AND RISK MANAGEMENT REPORTING (BASLE COMMITTEE)

The lack of connectivity and synergy between the financial reporting (IFRS), sustainability reporting (ISSB), and risk management reporting (Basle Committee) can lead to information asymmetry, which can negatively affect investors. Investors may not have a complete view of a company's performance, risks, and opportunities, which can result in misinformed investment decisions.

Investors require high-quality information to make informed investment decisions. Financial reporting is a critical component of this information, but it is no longer sufficient on its own. Investors now demand a broader view of company performance, including its social and environmental impact and the management of risks. To meet these demands, companies have started issuing Sustainability Reports and Risk Management Reports, in addition to traditional financial statements.

However, the lack of connectivity and synergy between these reports can have negative effects on investors as presented bellow .

a).?Incomplete information:

The lack of integration between financial reporting and sustainability reporting means that investors may not have a complete picture of the company's performance. For example, a company may have a high financial return but may also have a significant negative impact on the environment or society, which is not reflected in its financial statements. This could lead to inaccurate or incomplete assessments of the company's performance and may ultimately impact investment decisions.

b). Difficulty in comparing companies:

Investors often compare companies based on their financial performance. However, the lack of standardization in sustainability reporting and risk management reporting makes it difficult to compare companies based on non-financial metrics. This could lead to inaccurate comparisons and investment decisions.

c). Increased risk:

The lack of connectivity and synergy between sustainability reporting and risk management reporting can increase the risk of investment decisions. A company may have an excellent sustainability record but may be exposed to significant risks that are not captured in its risk management reporting. Investors who do not have access to this information may unknowingly invest in high-risk companies, leading to significant losses.

d). Inefficiencies:

Investors may face inefficiencies in analyzing the information provided by financial, sustainability, and risk management reports. Companies may use different metrics to report their performance, making it challenging for investors to compare them accurately. This can result in additional costs for investors as they may need to hire external consultants to interpret the information.

In conclusion, the lack of connectivity and synergy between financial reporting, sustainability reporting, and risk management reporting can have negative effects on investors. Companies need to provide a more comprehensive and integrated view of their performance to enable investors to make informed investment decisions. Standardization in reporting metrics is also essential to enable accurate comparisons between companies.

5. . THE POSITIVE EFFECTS ON INVESTORS GENERATED BY THE CONNECTIVITY AND SYNERGY BETWEEN THE FINANCIAL REPORTING (IFRS) SUSTAINABILITY REPORTING (ISSB) AND RISK MANAGEMENT REPORTING (BASLE COMMITTEE) - INVESTOR BENEFITS OF INTEGRATED REPORTING

The presence of connectivity and synergy between the financial reporting (IFRS), sustainability reporting (ISSB), and risk management reporting (Basle Committee) can lead to improved transparency and accountability, which can positively affect investors. Investors can have a more complete view of a company's performance, risks, and opportunities, which can result in better-informed investment decisions.

It can also provide investors with a more complete view of a company's operations and risks. This information can help investors make more informed investment decisions, reduce investment risk, and improve their investment returns. This integration can also incentivize companies to adopt more sustainable practices, reduce risks, and create long-term value

Investors today are increasingly interested in understanding a company's non-financial performance and how it may impact their financial performance in the long term. In response to this, the International Financial Reporting Standards (IFRS), the International Sustainability Standards Board (ISSB), and the Basel Committee on Banking Supervision (Basel Committee) have all developed reporting standards that address different aspects of a company's performance. This report will explore the positive effects on investors generated by the presence of connectivity and synergy between these reporting standards.

Positive effects of connectivity and synergy:

a) Improved transparency and accuracy of reporting

By bringing together financial reporting, sustainability reporting, and risk management reporting, companies can provide investors with a more comprehensive view of their performance. This can help to improve transparency and accuracy of reporting, making it easier for investors to make informed decisions.

b) Better risk management

The Basel Committee's reporting standards focus on risk management, while the ISSB's standards focus on sustainability. By combining these two areas, companies can identify and manage sustainability risks, which may have a financial impact in the long term. This can help investors to better understand the risks associated with investing in a particular company and make more informed decisions.

c) Enhanced long-term performance

The integration of sustainability reporting and financial reporting can help companies to focus on long-term performance rather than short-term gains. This can help to attract investors who are interested in sustainable investments and who are willing to invest in companies that prioritize long-term performance over short-term gains.

d) Improved reputation and stakeholder relations

Companies that are transparent about their performance and take steps to manage their risks and improve their sustainability may benefit from improved reputation and stakeholder relations. This can help to attract new investors and retain existing ones.

e) Increased investor confidence

By providing investors with a more comprehensive view of their performance, companies can increase investor confidence in their ability to manage risks and deliver sustainable long-term performance. This can lead to increased investment and improved access to capital.

In conclusion, the presence of connectivity and synergy between the financial reporting (IFRS), sustainability reporting (ISSB), and risk management reporting (Basel Committee) can generate positive effects on investors. These include improved transparency and accuracy of reporting, better risk management, enhanced long-term performance, improved reputation and stakeholder relations, and increased investor confidence. Companies that prioritize these areas are likely to attract and retain more investors and benefit from improved access to capital.

6. IDENTIFYING, ASSESSING AND PRIORITISING THE THEMES RELATED TO CONNECTIVITY AND SYNERGY BETWEEN THE FINANCIAL REPORTING (IFRS) SUSTAINABILITY REPORTING (ISSB) AND RISK MANAGEMENT REPORTING (BASLE COMMITTEE)

Some themes related to connectivity and synergy between financial reporting, sustainability reporting, and risk management reporting include:

- Integrating ESG risks with financial risks

- Developing a common language and metrics for ESG reporting

- Aligning ESG performance with executive compensation

- Enhancing stakeholder engagement and reporting

Assessing and prioritizing these themes will depend on a company's specific circumstances, industry, and stakeholder expectations.

Themes related to connectivity and synergy between the financial reporting (IFRS), sustainability reporting (ISSB), and risk management reporting (Basle Committee) include the integration of ESG factors into financial reporting, the identification and management of ESG risks, the disclosure of ESG performance, and the alignment of ESG reporting with international standards.

The integration of financial reporting, sustainability reporting, and risk management reporting is becoming increasingly important in today's business environment.?

As a result, identifying, assessing, and prioritizing themes related to connectivity and synergy between these three types of reporting is crucial.?

Identifying Themes:

The FIRST theme related to connectivity and synergy between IFRS, ISSB, and BCBS Risk Management Reporting is the need for integrated reporting.?

Integrated reporting aims to provide a holistic view of a company's performance by combining financial and non-financial information, including sustainability and risk management information. This theme highlights the importance of considering sustainability and risk management information when preparing financial reports, as well as the importance of including financial information in sustainability and risk management reports.

The SECOND theme is the need for consistency and comparability across reporting frameworks.?

To achieve this, it is essential to align reporting frameworks and standards to avoid inconsistencies and confusion.?

For example, ISSB is currently working on developing sustainability reporting standards that align with other reporting frameworks, such as IFRS,?UNEP FI?TCFD / TNFD, EFRAG, Global Reporting Initiative (GRI)?etc. This alignment will facilitate the comparison of sustainability data across different companies and industries.

The THIRD theme is the importance of materiality.?

Materiality refers to the significance of information in influencing the economic decisions of stakeholders. Companies need to consider materiality when preparing financial, sustainability, and risk management reports to ensure that they are providing relevant and useful information to stakeholders.

Assessing Themes:

The FIRST theme, integrated reporting, is assessed by looking at the extent to which companies include sustainability and risk management information in their financial reports and vice versa. A company's annual report is a useful tool for assessing the degree of integration of financial, sustainability, and risk management reporting.

The SECOND theme, consistency and comparability, can be assessed by comparing reporting frameworks and standards used by companies. The alignment of sustainability reporting standards with other reporting frameworks, such as IFRS and GRI, will facilitate comparison and benchmarking of sustainability data across companies and industries.

The THIRD theme, materiality, can be assessed by examining whether companies consider materiality when preparing their financial, sustainability, and risk management reports. Companies should ensure that they are reporting on issues that are material to their business and stakeholders.

Prioritizing Themes:

The prioritization of themes related to connectivity and synergy between IFRS, ISSB, and BCBS Risk Management Reporting depends on the specific needs of each company and its stakeholders. However, in general, the following prioritization can be considered:

a) Integrated Reporting - Companies should prioritize integrating sustainability and risk management information into their financial reports to provide a more comprehensive view of their performance.

b) Consistency and Comparability - Companies should prioritize aligning sustainability reporting standards with other reporting frameworks to ensure consistency and comparability of data across companies and industries.

c) Materiality - Companies should prioritize reporting on issues that are material to their business and stakeholders to provide relevant and useful information.

In conclusion, the integration of financial reporting, sustainability reporting, and risk management reporting is essential in today's business environment.?

Companies should prioritize integrating sustainability and risk management information into their financial reports, aligning reporting frameworks and standards to ensure consistency and comparability of data, and reporting on issues that are material to their business and stakeholders.?

By doing so, companies can provide a more comprehensive view of their performance and meet the evolving needs of their stakeholders.

7. BEST PRACTICES REPORTING REGARDING CONNECTIVITY AND SYNERGY BETWEEN THE FINANCIAL REPORTING (IFRS) SUSTAINABILITY REPORTING (ISSB) AND RISK MANAGEMENT REPORTING (BASLE COMMITTEE)

BEST practices reporting regarding connectivity and synergy between the financial reporting (IFRS), sustainability reporting (ISSB), and risk management reporting (Basle Committee) include the use of a materiality assessment to identify relevant ESG factors, the alignment of ESG reporting with international standards, and the disclosure of ESG performance and risks.

The integration of financial reporting, sustainability reporting, and risk management reporting is crucial for the effective management of an organization.?

IFRS:

IFRS is a set of accounting standards that provide a framework for financial reporting. The goal of IFRS is to provide consistent financial information that is transparent and comparable across different companies and industries. IFRS is used in over 100 countries, including the European Union, Canada, and Australia.

Best practices for reporting regarding connectivity and synergy between IFRS and sustainability reporting:

a) Alignment: Ensure that sustainability reporting is aligned with the organization's financial statements. This means that sustainability metrics and disclosures should be integrated into the financial statements.

b) Materiality: Identify the material sustainability issues that impact the organization's financial performance and include them in financial reporting. This will provide investors with a better understanding of the risks and opportunities associated with sustainability issues.

c) Consistency: Ensure that sustainability reporting is consistent across all reporting periods. This will enable investors to track the organization's sustainability performance over time.

ISSB:

The International Sustainability Standards Board (ISSB) is a global standard-setting organization that focuses on sustainability reporting. The goal of ISSB is to develop a globally accepted set of sustainability reporting standards.

Best practices for reporting regarding connectivity and synergy between ISSB and financial reporting:

a) Integration: Integrate ISSB sustainability reporting standards into the organization's financial reporting. This will provide investors with a comprehensive understanding of the organization's financial and sustainability performance.

b) Transparency: Provide transparent disclosures regarding sustainability issues that impact the organization's financial performance. This will enable investors to make informed investment decisions.

c) Stakeholder engagement: Engage with stakeholders to identify material sustainability issues and develop reporting standards that meet their needs. This will enhance the credibility of sustainability reporting.

BCBS:

The Basel Committee on Banking Supervision (BCBS) is a global standard-setting organization that focuses on banking regulation and risk management. The goal of BCBS is to develop globally accepted regulatory standards for the banking industry.

Best practices for reporting regarding connectivity and synergy between BCBS and financial reporting:

a) Integration: Integrate BCBS risk management standards into the organization's financial reporting. This will provide investors with a comprehensive understanding of the organization's risk profile.

b) Disclosure: Provide transparent disclosures regarding the organization's risk management practices. This will enable investors to make informed investment decisions.

c) Compliance: Ensure that the organization's risk management practices are in compliance with BCBS regulatory standards. This will mitigate the risk of non-compliance and reputational damage.

In conclusion, integrating financial reporting, sustainability reporting, and risk management reporting is essential for effective organizational management.?

Best practices for reporting regarding connectivity and synergy between IFRS, ISSB, and BCBS include alignment, materiality, consistency, integration, transparency, stakeholder engagement, disclosure, and compliance.?

By following these best practices, organizations can provide investors with a comprehensive understanding of their financial and sustainability performance, as well as their risk profile.

8. DEVELOPING POSSIBLE APPROACHES TO ENHANCE CONNECTIVITY AND SYNERGY BETWEEN THE FINANCIAL REPORTING (IFRS) SUSTAINABILITY REPORTING (ISSB) AND RISK MANAGEMENT REPORTING (BASLE COMMITTEE)

The financial reporting (IFRS), sustainability reporting (ISSB), and risk management reporting (Basel Committee) are three critical components of corporate reporting. However, there is a need to enhance the connectivity and synergy between these three components to ensure a comprehensive and coherent approach to corporate reporting. This report aims to develop possible approaches to enhance connectivity and synergy between the financial reporting (IFRS), sustainability reporting (ISSB), and risk management reporting (Basel Committee).

Approaches to Enhance Connectivity and Synergy:

Integrated Reporting:

Integrated reporting is an approach that aims to connect financial, sustainability, and risk management reporting. Integrated reporting involves presenting an organization's strategy, governance, performance, and prospects in a way that reflects the connectivity between these areas. Integrated reporting provides a comprehensive and coherent picture of an organization's value creation over time.

Common Framework:

Another approach to enhance connectivity and synergy between financial, sustainability, and risk management reporting is to develop a common framework. A common framework would provide a set of principles, guidelines, and standards that organizations can use to report on their financial, sustainability, and risk management performance. The common framework would ensure that organizations report on their performance in a consistent and comparable way.

Alignment of Standards:

The International Financial Reporting Standards (IFRS), International Sustainability Standards Board (ISSB), and Basel Committee on Banking Supervision (BCBS) could work together to align their standards. Alignment of standards would ensure that organizations report on their financial, sustainability, and risk management performance using a consistent set of standards. This would enhance connectivity and synergy between the three components of corporate reporting.

Integrated Assurance:

Integrated assurance involves a coordinated approach to the assurance of financial, sustainability, and risk management reporting. Integrated assurance would ensure that the organization's financial, sustainability, and risk management reporting is audited or assured in a coordinated and integrated way. This would provide stakeholders with greater confidence in the organization's reporting.

To conclude the connectivity and synergy between financial, sustainability, and risk management reporting are essential for a comprehensive and coherent approach to corporate reporting. The approaches outlined in this report, namely integrated reporting, a common framework, alignment of standards, and integrated assurance, could help enhance the connectivity and synergy between these components of corporate reporting. It is essential that organizations and regulators work together to develop and implement these approaches to improve the quality and usefulness of corporate reporting.

9. THE CRITICAL ROLE OF THE INTERNAL CONTROL FRAMEWORK AND OF ITS TWO COMPONENTS THE INTERNAL AND EXTERNAL AUDIT IN CERTIFYING THE ACCURACY OF?FINANCIAL REPORTING, SUSTAINABILITY REPORTING AND RISK MANAGEMENT REPORTING

The accuracy and reliability of financial reporting, sustainability reporting, and risk management reporting are critical for the smooth functioning of an organization. Inaccurate or incomplete information can have far-reaching consequences for an organization, its stakeholders, and the wider economy. Therefore, internal and external audits play a critical role in certifying the accuracy of these reports.?

Internal Audit:

Internal audit is an independent function within an organization that evaluates and provides assurance on the effectiveness of an organization's internal controls, risk management, and governance processes. Internal auditors are responsible for providing management with an independent assessment of the organization's operations, identifying areas of risk, and recommending improvements to enhance the efficiency and effectiveness of operations.

Internal audits play a vital role in certifying the accuracy of financial reporting, sustainability reporting, and risk management reporting. Internal auditors assess the adequacy and effectiveness of internal controls over financial reporting to ensure that financial statements are free from material misstatement. They also review the organization's sustainability reporting to ensure that the information is accurate, reliable, and complete. Additionally, internal auditors assess the organization's risk management reporting to ensure that risks are identified, evaluated, and managed effectively.

External Audit:

External audit is an independent examination of an organization's financial statements by a certified public accountant (CPA) or a registered public accounting firm. The objective of an external audit is to provide an independent opinion on whether the financial statements are presented fairly, in all material respects, in accordance with the applicable accounting standards.

External audits play a critical role in certifying the accuracy of financial reporting. External auditors provide assurance that the financial statements are free from material misstatement and that they are presented in accordance with the applicable accounting standards. They also provide an independent opinion on the effectiveness of internal controls over financial reporting.

In recent years, external auditors have also been playing a significant role in sustainability and risk management reporting. As sustainability and risk management become increasingly important for organizations, external auditors are being engaged to provide assurance on the accuracy, completeness, and reliability of these reports.

To conclude internal and external audits play a critical role in certifying the accuracy of financial reporting, sustainability reporting, and risk management reporting. Internal auditors assess the adequacy and effectiveness of internal controls, risk management, and governance processes, while external auditors provide independent assurance on the accuracy of financial statements and increasingly, sustainability and risk management reporting. Ensuring that these reports are accurate and reliable is essential for the smooth functioning of an organization and to maintain the trust of its stakeholders.

10. THE POSITIVE EFFECT OF THE FINANCIAL REPORTING (IFRS) SUSTAINABILITY REPORTING (ISSB) AND RISK MANAGEMENT REPORTING (BASLE COMMITTEE) CONNECTIVITY AND SYNERGY ON DETECTING AND COMBATING GREENWASHING. REPORTING STANDARDS' IMPACT ON GREENWASHING

Greenwashing is a common issue that has arisen with the increase in environmental concerns among the general public. Companies often use misleading information or falsely advertise their environmental policies, making it challenging to distinguish genuine sustainable actions from those that are not.?

In the overview bellow it is highlighted the positive effect of the connectivity and synergy between Financial Reporting (IFRS), Sustainability Reporting (ISSB), and Risk Management Reporting (Basle Committee) on detecting and combating greenwashing. The overview presents also the significance of these reporting standards, their connectivity, and their potential impact on combating greenwashing.

Greenwashing is the practice of making false or exaggerated claims about the environmental benefits of a product, service, or company. Greenwashing has become a growing concern as consumers increasingly seek out environmentally responsible products and services. To combat greenwashing, companies need to adopt sustainable practices and report them accurately. In recent years, reporting standards such as Financial Reporting (IFRS), Sustainability Reporting (ISSB), and Risk Management Reporting (Basle Committee) have gained significance.

Financial Reporting (IFRS):

The International Financial Reporting Standards (IFRS) provides a global framework for financial reporting. These standards require companies to provide transparent and consistent financial information, making it easier for stakeholders to assess the financial performance of companies. The adoption of IFRS can facilitate the detection of greenwashing by ensuring that companies report the financial impact of their sustainability initiatives accurately.

Sustainability Reporting (ISSB):

The International Sustainability Standards Board (ISSB) is a new standard-setting board that focuses on developing global sustainability reporting standards. Sustainability reporting provides information on a company's sustainability performance, including environmental, social, and governance (ESG) issues. Sustainability reporting can assist in identifying and addressing greenwashing by providing more accurate and reliable information about a company's sustainability practices.

Risk Management Reporting (Basle Committee):

The Basle Committee on Banking Supervision sets international standards for banking regulation. Risk management reporting is an essential component of these standards, which require banks to identify, assess, and manage risks. The reporting standards include environmental risks, which can help detect and mitigate the environmental impact of banking activities. By incorporating environmental risks into their risk management practices, banks can avoid greenwashing and ensure that their sustainability practices are authentic.

Connectivity and Synergy:

The connectivity and synergy between financial reporting, sustainability reporting, and risk management reporting can facilitate the detection and combating of greenwashing. By incorporating sustainability reporting and environmental risks into their financial reporting, companies can provide more accurate and reliable information about their sustainability practices. This can help investors and stakeholders identify greenwashing and promote genuine sustainability practices. Similarly, by incorporating environmental risks into their risk management practices, banks can ensure that their sustainability practices are genuine and avoid greenwashing.

As a conclusion greenwashing is a growing concern that can undermine the credibility of sustainability efforts. Reporting standards such as financial reporting, sustainability reporting, and risk management reporting can help detect and combat greenwashing by providing more accurate and reliable information about a company's sustainability practices. The connectivity and synergy between these reporting standards can enhance the effectiveness of combating greenwashing and promote genuine sustainability practices. Companies and banks should adopt these reporting standards and ensure that their sustainability practices are authentic to promote sustainability and combat greenwashing.

11. THE NEED FOR KPIs EXPRESSING CONNECTIVITY AND SYNERGY OF FINANCIAL REPORTING (IFRS) SUSTAINABILITY REPORTING (ISSB) AND RISK MANAGEMENT REPORTING (BASLE COMMITTEE). INTEGRATED REPORTING KPI

The convergence of financial and non-financial reporting has been a growing trend in recent years. The International Financial Reporting Standards (IFRS) and the International Integrated Reporting Framework (IIRC) have been promoting the integration of financial and sustainability reporting. Similarly, the Basel Committee on Banking Supervision (BCBS) has been advocating the integration of risk management reporting with financial reporting. The purpose of this report is to provide a detailed presentation of key performance indicators (KPIs) that express the connectivity and synergy of these three reporting frameworks.

IFRS KPIs

IFRS is a set of accounting standards developed by the International Accounting Standards Board (IASB) that aims to provide a single set of high-quality, understandable, and enforceable financial reporting standards for globally listed companies. The following are some KPIs that express the connectivity and synergy of financial and sustainability reporting under IFRS:

Integrated Reporting: The number of companies that produce integrated reports, which combine financial and non-financial information in a single report.

Sustainability Disclosures: The level of sustainability disclosures made by companies in their financial reports, such as the amount of carbon emissions, water usage, and waste generated.

Non-Financial Metrics: The number of non-financial metrics reported by companies, such as employee turnover, customer satisfaction, and community investment.

ISSB KPIs

The International Sustainability Standards Board (ISSB) is a new board established by the International Financial Reporting Standards Foundation (IFRS Foundation) to develop a globally accepted sustainability reporting standard. The following are some KPIs that express the connectivity and synergy of financial and sustainability reporting under ISSB:

Sustainability Reporting Adoption: The number of companies that adopt the ISSB sustainability reporting standard.

Sustainability Metrics: The number of sustainability metrics reported by companies, such as carbon emissions, water usage, and human rights.

Integrated Reporting: The number of companies that produce integrated reports, which combine financial and sustainability information in a single report.

Basel Committee KPIs

The Basel Committee on Banking Supervision (BCBS) is a committee of banking supervisors that aims to promote and strengthen the supervision of banks and improve the stability of the banking system. The following are some KPIs that express the connectivity and synergy of risk management reporting and financial reporting under BCBS:

Risk Management Reporting Adoption: The number of banks that adopt the BCBS risk management reporting standards.

Risk Metrics: The number of risk metrics reported by banks, such as credit risk, market risk, and operational risk.

Integrated Reporting: The number of banks that produce integrated reports, which combine financial and risk management information in a single report.

In conclusion, the integration of financial, sustainability, and risk management reporting is becoming increasingly important in the current business landscape. The KPIs mentioned above can help companies and banks measure the level of connectivity and synergy between these reporting frameworks. By adopting these KPIs, companies and banks can improve their reporting practices, enhance their transparency and accountability, and better meet the needs of their stakeholders.

12. IMPACT OF NON-FINANCIAL RISKS ON BANKS' PROFITABILITY AND THE MANAGERIAL GOVERNANCE, INTERNAL AND EXTERNAL CONTROL AND IT REPORTING SOLUTIONS TO SUCCESSFULLY MANAGE THESE RISKS

a) pollution risk

b) greenhouse gas emissions risk

c) global warming risk

d) polar ice melting risk / sea level rise risk?

e) climate change risk

f) flood and drought risk

g) heat and forest fires risks

h) deforestation risk

i) transition risk?

j) physical risk

k) greenwashing risk

a) Pollution Risk:

Pollution risk refers to the adverse impact of environmental pollution on the banks' profitability. The exposure to pollution risks can lead to reputation damage and litigation expenses for banks. To manage this risk, banks can adopt green policies and practices, invest in clean technologies, and monitor the environmental performance of their borrowers.

b) Greenhouse Gas Emissions Risk:

Greenhouse gas emissions risk refers to the financial risk associated with the impact of carbon emissions on the economy and climate change. The exposure to greenhouse gas emissions risk can lead to reputational damage, regulatory fines, and stranded assets. To manage this risk, banks can support the transition to a low-carbon economy by investing in renewable energy, financing energy-efficient projects, and offering green loans and bonds.

c) Global Warming Risk:

Global warming risk refers to the adverse impact of global warming on the economy and society. The exposure to global warming risk can lead to reputational damage, regulatory fines, and reduced asset values. To manage this risk, banks can support the transition to a low-carbon economy, develop climate-resilient infrastructure, and invest in climate-related research and development.

d) Polar Ice Melting Risk/Sea Level Rise Risk:

Polar ice melting risk/sea level rise risk refers to the adverse impact of rising sea levels on the economy and society. The exposure to polar ice melting risk/sea level rise risk can lead to reputational damage, regulatory fines, and reduced asset values. To manage this risk, banks can invest in climate-resilient infrastructure, support the development of adaptation strategies, and offer insurance products that cover climate-related risks.

e) Climate Change Risk:

Climate change risk refers to the adverse impact of climate change on the economy and society. The exposure to climate change risk can lead to reputational damage, regulatory fines, and reduced asset values. To manage this risk, banks can support the transition to a low-carbon economy, invest in renewable energy and clean technologies, and offer green financial products.

f) Flood and Drought Risk:

Flood and drought risk refers to the adverse impact of extreme weather events on the economy and society. The exposure to flood and drought risk can lead to reputational damage, regulatory fines, and reduced asset values. To manage this risk, banks can invest in climate-resilient infrastructure, support the development of adaptation strategies, and offer insurance products that cover climate-related risks..

g) Heat and Forest Fires Risks:

Heat and forest fires risks refer to the adverse impact of extreme weather events on the economy and society. The exposure to heat and forest fires risks can lead to reputational damage, regulatory fines, and reduced asset values. To manage this risk, banks can invest in climate-resilient infrastructure, support the development of adaptation strategies, and offer insurance products that cover climate-related risks.

h) Deforestation Risk:

Deforestation risk refers to the adverse impact of deforestation on the economy and society. The exposure to deforestation risk can lead to reputational damage, regulatory fines, and reduced asset values. To manage this risk, banks can develop and implement a sustainable forestry policy, support the development of sustainable land use practices, and monitor the environmental performance of their borrowers.

i) Transition Risk:

Transition risk refers to the financial risk that may arise from the transition to a low-carbon economy. The exposure to transition risk can lead to reduced asset values, increased credit risk, and reputational damage. To manage this risk, banks can assess the carbon intensity of their loan portfolios, identify and measure transition risks, and support the development of low-carbon technologies.

j) Physical Risk:

Physical risk refers to the adverse impact of climate-related events on the economy and society. The exposure to physical risk can lead to reputational damage, regulatory fines, and reduced asset values. To manage this risk, banks can invest in climate-resilient infrastructure, support the development of adaptation strategies, and offer insurance products that cover climate-related risks.

k) Greenwashing Risk:

Greenwashing risk refers to the risk that a company falsely markets its products or services as environmentally friendly. The exposure to greenwashing risk can lead to reputational damage, regulatory fines, and reduced asset values. To manage this risk, banks can establish a due diligence process to verify the environmental claims of their borrowers and invest in green financial products.

Conclusion:

The aforementioned non-financial risks pose significant challenges to the banking sector. To manage these risks, banks need to develop a robust governance framework, implement effective internal and external controls, and leverage IT reporting solutions.?

Banks that successfully manage these risks will be better positioned to navigate the transition to a low-carbon economy, safeguard their reputation, and ensure long-term profitability.

In summary, the following managerial, internal and external control, and IT reporting solutions can be implemented to manage non-financial risks:

Managerial Governance: Develop and implement a climate adaptation strategy, assign a dedicated team to monitor the implementation of the strategy, and establish a framework for reporting and reviewing climate adaptation performance.

Internal and External Control: Regularly review and monitor the climate adaptation performance of borrowers, establish risk thresholds, and take appropriate measures to mitigate climate adaptation risks.

IT Reporting Solutions: Implement a climate adaptation data management system to monitor, measure, and report on climate adaptation risks, set up a database of climate adaptation risks and opportunities, and integrate climate adaptation performance data into credit risk assessments.

Recommended strategic actions:

Develop a comprehensive risk management strategy that takes into account the potential impact of non-financial risks on the bank's operations and profitability.

Establish a dedicated team to monitor and manage non-financial risks, with clear lines of responsibility and reporting.

Integrate non-financial risk management into the bank's overall governance framework, including the development of risk policies and procedures, risk monitoring, and reporting mechanisms.

Establish a system of internal and external controls to identify, assess, and manage non-financial risks, including regular risk assessments, monitoring, and reporting to senior management and the board of directors.

Leverage IT reporting solutions to collect and analyze data on non-financial risks, including the development of risk models and predictive analytics to identify emerging risks and trends.

Foster a culture of risk awareness and risk management throughout the organization, including regular training and awareness programs for employees at all levels.

By implementing these solutions, banks can effectively manage non-financial risks, enhance their reputation, and ensure long-term profitability in a changing climate and economy

13. IMPACT OF POLLUTION RISK ON BANK PERFORMANCE - MANAGEMENT OF POLLUTION RISK

Pollution risk can have a significant impact on a bank's profitability. For example, if a bank has made a loan to a company that is engaged in activities that lead to pollution, the bank could face reputational risks if it becomes associated with the negative environmental impact of those activities.?

Additionally, the bank may face financial risks if the company defaults on the loan due to regulatory fines or cleanup costs associated with pollution.?

Furthermore, if a bank's own operations contribute to pollution, it may face regulatory fines, litigation costs, and damage to its reputation, all of which can impact its profitability.

Governance, Risk, Compliance (GRC), Corporate Governance, Internal Control framework, Risk Management and Managerial Reporting Solutions for Managing Pollution Risk

To successfully manage pollution risk, banks should implement a comprehensive GRC strategy and policy covering the corporate governance, the?internal control, the risk management framework?and the IT reporting solutions.?

Below are some possible solutions:

Corporate Governance:

- Establish a clear organizational structure and assign roles and responsibilities for pollution risk management.

- Develop a policy that sets out the bank's approach to pollution risk management.

- Establish a process for identifying and assessing pollution risks, and implement mitigation measures where necessary.

- Conduct regular training and awareness sessions for employees on pollution risk management.

Internal Control framework - the internal audits?

- Internal Audit:

Internal audit plays an important role in managing pollution risk by providing independent and objective assurance to the bank's management that its internal control systems are effective in managing pollution risk. The internal audit function can perform the following tasks:

- Conduct regular environmental audits of the bank's own operations and implement measures to minimize environmental impacts.

- Conducting regular environmental risk assessments to identify areas of potential pollution risk.

- Reviewing the bank's policies and procedures for managing pollution risk to ensure that they are effective and up to date.

- Evaluating the adequacy and effectiveness of controls in place to manage pollution risk, including those related to loan underwriting and monitoring, as well as the bank's own operations.

- Reporting on the results of its assessments to senior management and the board of directors, including any recommendations for improvement.

- Develop a system for monitoring and reporting pollution risks.

- Implement controls to ensure that loans are made to companies with good environmental records.

- Establish a system for tracking the environmental performance of borrowers and conducting regular reviews.

Internal Control framework -?external audits

External Audit:

External audit, such as those performed under International Financial Reporting Standards (IFRS),?International Sustainability Reporting Standards?and International Standards on Auditing (ISA), plays a critical role in enhancing the credibility and reliability of financial reporting related to pollution risk.?

Specifically, external audits have the following internal control functions:

- Monitor regulatory developments related to pollution risk and adjust policies, practices, procedures and systems as necessary to comply with regulations.

- Collaborate with industry peers and stakeholders to share best practices and improve pollution risk management practices.

- Conduct due diligence on potential borrowers to ensure that they have robust environmental risk management practices in place.

- Verify the completeness and accuracy of financial disclosures related to pollution risk, including the recognition and measurement of any associated liabilities or contingencies.

- Evaluate the adequacy and effectiveness of the bank's internal control system related to pollution risk management.

- Provide independent and objective assurance to stakeholders that the bank is in compliance with relevant laws and regulations related to pollution risk management.

- Report on any material weaknesses in the bank's internal control system related to pollution risk management, along with recommendations for improvement.

The role and importance of external audit based on the standards issued by the International Sustainability Standards Board (ISSB) in managing pollution risk:

ISSB is an independent standard-setting organization that develops and maintains global sustainability reporting standards.?

These standards aim to promote consistent and comparable reporting of sustainability performance across organizations, industries, and countries. The ISSB has developed standards that are specifically relevant to pollution risk management, such as the ISSB Sustainability Reporting Standards (SRS) and the ISSB Climate Risk Management Standards.

External audit based on ISSB standards can provide important benefits to banks in managing pollution risk:

- Independent verification of sustainability reporting:

a)?External audit based on ISSB standards provides independent assurance to stakeholders that the bank's sustainability reporting on pollution risk is accurate and reliable.

b)?Enhanced credibility and transparency: External audit based on ISSB standards can enhance the credibility and transparency of the bank's sustainability reporting, which can in turn enhance the bank's reputation.

- Improved risk management: External audit based on ISSB standards can provide a comprehensive review of the bank's pollution risk management practices, including its policies, procedures, and controls, and can identify areas for improvement.

- Regulatory compliance: External audit based on ISSB standards can help the bank ensure compliance with relevant regulations related to pollution risk management.

- Benchmarking: External audit based on ISSB standards can provide valuable benchmarking information for the bank, comparing its pollution risk management practices with those of other organizations.

Conclusion regarding the internal control functions of internal audit and external audit

The external audit based on ISSB standards can provide important benefits to banks in managing pollution risk, including independent verification of sustainability reporting, enhanced credibility and transparency, improved risk management, regulatory compliance, and benchmarking. By implementing external audit based on ISSB standards, banks can effectively manage their pollution risk and enhance their long-term sustainability performance.

The internal and external audit functions represent two important components of the internal control framework playing critical roles in the management of pollution risk.?

The internal audit function provides independent and objective assurance that the bank's internal control systems are effective in managing pollution risk, while external audit enhances the credibility and reliability of financial reporting related to pollution risk and provides independent assurance to stakeholders that the bank is in compliance with relevant laws and regulations.

Together, the internal and external audit functions can help banks effectively manage their pollution risk, mitigate financial and reputational risks, and enhance their long-term profitability.

IT Reporting Solutions:

- Develop a system for collecting, analyzing, and reporting environmental data.

- Use data analytics to identify and assess pollution risks.

- Implement a system for tracking environmental performance data of borrowers and conducting regular reviews.

CONCLUSIONS

Banks should take pollution risk seriously and implement a comprehensive corporate governance strategy and policies, an effective internal control framework along with sound risk management policies, procedures, systems and IT reporting solutions. By doing so, they can mitigate the financial and reputational risks associated with pollution and improve their profitability over the long term.

14. APPLICATION TO SUSTAINABILITY REPORTING OF THE 5 COMPONENTS AND 17 PRINCIPLES OF THE COSO INTERNAL CONTROL?INTEGRATED FRAMEWORK (ICIF)

According to COSO's website "The Committee of Sponsoring Organizations’ (COSO) mission is to help organizations improve performance by developing thought leadership that enhances internal control, risk management, governance and fraud deterrence.

Vision

COSO’s vision is to be globally recognized as an authority on internal control and a thought leader on risk management, governance and fraud deterrence.

History

COSO was organized in 1985 to sponsor the National Commission on Fraudulent Financial Reporting, an independent private-sector initiative that studied the causal factors that can lead to fraudulent financial reporting. It also developed recommendations for public companies and their independent auditors, for the SEC and other regulators, and for educational institutions.

The National Commission was sponsored jointly by five major professional associations headquartered in the United States: the American Accounting Association (AAA), the American Institute of Certified Public Accountants (AICPA), Financial Executives International (FEI) , The Institute of Internal Auditors (IIA), and the National Association of Accountants (now the Institute of Management Accountants [IMA]). Wholly independent of each of the sponsoring organizations, the Commission included representatives from industry, public accounting, investment firms, and the New York Stock Exchange.

COSO’s goal is to provide thought leadership dealing with three interrelated subjects: enterprise risk management (ERM), internal control, and fraud deterrence."

The COSO Internal Control Integrated Framework (ICIF) is a widely used framework for designing, implementing, and evaluating internal controls. In recent years, there has been growing interest in the application of this framework to sustainability reporting.

The COSO ICIF is a framework that provides guidance on designing and implementing internal control systems for organizations. The framework consists of five components and seventeen principles that are intended to help organizations establish effective internal controls that address a variety of risks and challenges.

The five components of the COSO ICIF are:

- 1st COSO component - Control Environment: This component sets the tone for the organization's internal control system and involves establishing the culture, values, and ethical standards that guide the organization's activities.

- 2nd COSO component - Risk Assessment: This component involves identifying and assessing risks that may impact the organization's ability to achieve its objectives.

- 3rd COSO component - Control Activities:

This component involves implementing policies and procedures to mitigate identified risks and ensure that the organization's objectives are achieved.

- 4th COSO component - Information and Communication:

This component involves establishing effective communication channels to ensure that relevant information is shared throughout the organization.

- 5th COSO component - Monitoring Activities:

This component involves ongoing monitoring of the organization's internal control system to identify and address any deficiencies.

The COSO ICIF's 17 principles are intended to support the implementation of the five components and provide more detailed guidance on the specific elements that should be included in an effective internal control system.

The application of the COSO ICIF to sustainability reporting involves using the framework to establish effective internal controls that ensure the accuracy and completeness of sustainability data and disclosures. This can involve:

a. Assessing the organization's sustainability risks and identifying areas where internal controls are needed to ensure the integrity of sustainability data.

b. Establishing policies and procedures to ensure that sustainability data is accurate and complete, and that all relevant information is appropriately disclosed.

c. Implementing effective communication channels to ensure that sustainability data is shared throughout the organization and with external stakeholders.

d. Monitoring the organization's sustainability reporting activities to identify and address any deficiencies or areas for improvement.

By applying the COSO ICIF to sustainability reporting, organizations can improve the accuracy and reliability of their sustainability disclosures and demonstrate their commitment to sustainability and responsible business practices.

Bellow you can find details of how each of the 17 principles of the COSO Internal Control Integrated Framework can be applied to sustainability reporting:

1st COSO Principle - Demonstrates commitment to integrity and ethical values:?

This principle involves establishing a culture of integrity and ethical values that guide the organization's activities. In the context of sustainability reporting, this means ensuring that sustainability data is reported accurately and honestly, and that the organization is transparent about its sustainability performance.

2nd COSO Principle - Exercises oversight responsibility:?

This principle involves establishing oversight mechanisms to ensure that the organization's sustainability reporting is accurate and reliable. This can involve establishing an internal audit function or appointing a sustainability committee to oversee sustainability reporting activities.

3rd COSO Principle - Establishes structure, authority, and responsibility:?

This principle involves assigning responsibility for sustainability reporting activities to specific individuals or departments within the organization. This can involve establishing a dedicated sustainability team or appointing a sustainability officer to oversee sustainability reporting activities.

4th COSO Principle - Demonstrates commitment to competence:?

This principle involves ensuring that individuals responsible for sustainability reporting have the necessary knowledge and skills to perform their duties effectively. This can involve providing training and development opportunities for sustainability reporting staff.

5th COSO Principle - Enforces accountability:?

This principle involves establishing clear lines of accountability for sustainability reporting activities and ensuring that individuals are held accountable for their actions. This can involve establishing performance metrics and linking sustainability performance to employee compensation.

6th COSO Principle - Defines objectives and risk tolerances:?

This principle involves establishing clear sustainability objectives and determining the organization's risk tolerance for sustainability risks. This can involve setting specific sustainability targets and determining the level of risk the organization is willing to accept in pursuit of these targets.

7th COSO Principle - Identifies and analyzes risk:?

This principle involves identifying and analyzing sustainability risks that may impact the organization's ability to achieve its sustainability objectives. This can involve conducting a sustainability risk assessment and developing a risk management plan to mitigate identified risks.

8th COSO Principle - Assesses fraud risk:?

This principle involves assessing the risk of fraud related to sustainability reporting activities. This can involve establishing controls to prevent or detect fraud, such as implementing whistle-blower hotlines or conducting regular audits of sustainability data.

9th COSO Principle - Identifies and analyzes significant change:?

This principle involves identifying and analyzing significant changes that may impact the organization's sustainability performance. This can involve monitoring trends in sustainability data and assessing the impact of external factors, such as changes in regulations or stakeholder expectations.

10th COSO Principle - Selects and develops control activities:?

This principle involves selecting and developing control activities to mitigate identified sustainability risks. This can involve establishing policies and procedures for collecting, analyzing, and reporting sustainability data, and ensuring that these activities are performed effectively.

11th COSO Principle - Deploys control activities:?

This principle involves deploying control activities to ensure that sustainability data is accurate and reliable. This can involve establishing monitoring and reporting mechanisms to ensure that sustainability data is reported accurately and that any issues are identified and addressed promptly.

12th COSO Principle - Demonstrates ongoing evaluation:?

This principle involves demonstrating ongoing evaluation of the organization's sustainability reporting activities. This can involve conducting regular audits of sustainability data and reporting on the organization's sustainability performance.

13th COSO Principle - Communicates internally:?

This principle involves communicating sustainability information throughout the organization. This can involve establishing communication channels to ensure that sustainability data is shared with relevant departments and employees, and that everyone is aware of the organization's sustainability objectives and performance.

14th COSO Principle - Communicates externally:?

This principle involves communicating sustainability information to external stakeholders, such as investors, customers, and regulators. This can involve publishing sustainability reports or disclosing sustainability information on the organization's website.

15th COSO Principle - Uses relevant, quality information:?

This principle involves using relevant, quality information to inform sustainability reporting activities. This can involve establishing data collection and analysis processes to ensure that sustainability data is accurate and reliable, and that it meets the needs of stakeholders.

16th COSO Principle - Considers the potential for fraud:?

This principle involves considering the potential for fraud related to sustainability reporting activities. This can involve establishing controls to prevent or detect fraud, such as implementing whistle-blower hotlines or conducting regular audits of sustainability data.

17th COSO Principle - Demonstrates commitment to continuous improvement:?

This principle involves demonstrating a commitment to continuous improvement of sustainability reporting activities. This can involve establishing processes to collect feedback from stakeholders, conducting regular reviews of sustainability data and reporting processes, and identifying opportunities to improve sustainability performance.

Overall, applying the 17 principles of the COSO Internal Control Integrated Framework to sustainability reporting can help organizations ensure that their sustainability reporting activities are effective, accurate, and reliable. By establishing clear objectives, assigning responsibility, mitigating risks, and demonstrating a commitment to continuous improvement, organizations can build trust with stakeholders and demonstrate their commitment to sustainability.

15. THE ROLE AND IMPORTANCE OF THE SCIENCE-BASED NET-ZERO TARGET SETING STANDARD IN SUSTAINABILITY REPORTING

The Science Based Targets initiative (SBTi) is a joint initiative of the World Resources Institute's Center for Sustainable Business, CDP, WWF, the UN Global Compact, and We Mean Business. The initiative was launched in 2015 with the aim of helping companies set greenhouse gas (GHG) reduction targets that are aligned with the goals of the Paris Agreement to limit global warming to well below 2°C above pre-industrial levels.

The SBTi offers a framework and guidelines to help companies set targets that are scientifically sound, ambitious, and in line with the latest climate science. The initiative's approach is based on three key principles:

- Aligning with the latest climate science: Companies are encouraged to set targets that are consistent with the latest climate science, including the goal of limiting global warming to well below 2°C above pre-industrial levels.

- Achieving ambitious emissions reductions: Companies are encouraged to set targets that are ambitious and reflect their fair share of the emissions reductions needed to achieve the goals of the Paris Agreement.

- Providing transparency and accountability: Companies are expected to publicly disclose their targets and progress towards achieving them.

To participate in the SBTi, companies must first submit their targets for review by an independent panel of experts. The targets are evaluated based on their scientific rigor, ambition, and feasibility. If the targets meet the SBTi's criteria, they are then approved and the company is recognized as a leader in climate action.

Over 4,000 companies worldwide are leading the transition to a net-zero economy by setting emissions reduction targets grounded in climate science through the SBTi.?

As of March 2023, over 2,300 companies have had science-based targets approved with the SBTi.?

The SBTi’s 2021 Progress Report revealed that one third of global market capitalization has committed to climate action through the SBTi, and 1.5 billion tonnes of CO2 are covered by the SBTi (scopes 1 and 2).?

2021 also saw 53 million tonnes of CO2 emissions reductions across all targets.

SBTi launched its groundbreaking Net-Zero Standard in October 2021, providing companies with the guidance and tools needed to set science-based net-zero targets.

As of March 2023, over 170 companies have validated net-zero targets. SBTi is also developing the world’s first Standard for science-based net-zero target setting for the Financial sector, expected to launch in early 2024. These companies represent a wide range of industries, including energy, finance, and consumer goods.?

The SBTi has also launched a Net-Zero Standard to help companies set targets to reach net-zero emissions by 2050 or sooner, which has been endorsed by over 1,000 companies.

In conclusion, the Science Based Targets initiative is a valuable tool for companies to set meaningful GHG reduction targets that are aligned with the latest climate science and the goals of the Paris Agreement. The initiative has been successful in engaging a wide range of companies and sectors, and has helped to drive progress towards a low-carbon economy.

16. CONNECTIVITY, SYNERGY, COMMON POINTS, DIFFERENCES, INTER-DEPENDENCIES, OPPORTUNITIES AND CHALLENGES OF CORPORATE GOVERNANCE, COSO INTERNAL CONTROL FRAMEWORK, RISK MANAGEMENT REPORTING, FINANCIAL MANAGEMENT REPORTING, SUSTAINABILITY REPORTING, SCIENCE BASED NET-ZERO TARGET SETTING REPORTING, AND INTERNAL AND EXTERNAL AUDIT REPORTING

Corporate governance, COSO internal control framework, risk management reporting, financial management reporting, sustainability reporting, science-based net-zero target setting reporting, and internal and external auditing standards are essential frameworks that contribute to the overall success of organizations. These frameworks have a high level of connectivity and synergy, which allows organizations to achieve their objectives efficiently and effectively.

Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. It involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government, and the community. The COSO internal control framework, on the other hand, provides a comprehensive approach to internal control that helps organizations achieve their objectives and improve performance. It consists of five components: control environment, risk assessment, control activities, information and communication, and monitoring activities.

Risk management reporting is an essential part of corporate governance and involves identifying, assessing, and managing risks that may impact the organization's objectives. Financial management reporting provides financial information to internal and external stakeholders, such as investors, creditors, and regulatory bodies. Sustainability reporting, on the other hand, focuses on disclosing an organization's social, environmental, and economic impacts and performance. Science-based net-zero target setting reporting involves setting targets that align with the latest climate science and require the organization to reduce its greenhouse gas emissions to net-zero by 2050 or earlier.

Internal and external auditing standards provide guidelines on how organizations should carry out their audit activities. These standards ensure that auditors are independent, objective, and follow a systematic approach to auditing.

The SBTi offers a framework and guidelines to help companies set targets that are scientifically sound, ambitious, and in line with the latest climate science

All of these frameworks are interconnected and support one another. Corporate governance provides the foundation for effective control and management of risks, while the COSO internal control framework provides the tools to implement that control. Risk management reporting and financial management reporting contribute to effective decision-making by providing relevant and timely information to stakeholders. Sustainability reporting provides transparency and accountability regarding an organization's environmental and social performance, while science-based net-zero target setting reporting supports organizations in aligning their sustainability goals with the latest climate science. Finally, internal and external auditing standards provide assurance that an organization's systems and processes are working effectively and efficiently.

While these frameworks have many common points, such as the need for transparency, accountability, and effective management of risks, they also have differences and inter-dependencies.

Corporate governance provides the overall framework for the management of an organization, while the COSO internal control framework provides a more detailed approach to implementing that framework. Risk management reporting focuses on identifying and managing risks, while financial management reporting provides information on an organization's financial performance.

?Sustainability reporting and science-based net-zero target setting reporting focus on the organization's social, environmental, and economic impacts and performance. Internal and external auditing standards provide guidelines on how organizations should carry out their audit activities.

However, these frameworks are inter-dependent and interconnected.

Effective corporate governance requires an effective internal control framework, risk management, and reporting.

Financial management reporting is a critical component of effective decision-making, which in turn is a key aspect of corporate governance.

Sustainability reporting and science-based net-zero target setting reporting provide transparency and accountability for appraising an organization's environmental and social performance, which is a key component of corporate social responsibility.

In addition, the internal and external auditing standards provide assurance that an organization's systems and processes are working effectively and efficiently, which is critical for good governance and risk management.

However, the large number of guidelines and standards can also create challenges for organizations. Compliance with these frameworks can be time-consuming, complex, and costly, especially for smaller organizations with limited resources. Additionally, there may be conflicts between different frameworks, which can create confusion and make compliance more challenging.

To address these challenges, organizations need to prioritize the frameworks that are most relevant to their operations and stakeholders. They should also consider integrating these frameworks into their overall management systems, rather than treating them as separate and distinct frameworks. This can help reduce the burden of compliance and enhance the effectiveness of these frameworks

Common Points

The various frameworks and standards mentioned above share a common goal of promoting sustainability and responsible business practices. They all aim to provide guidance and support to companies in implementing sustainable practices, reporting on their sustainability performance, and managing risks related to environmental, social, and governance issues. They also emphasize the importance of stakeholder engagement, transparency, and accountability.

Divergences

Despite their shared goals, there are divergences among the frameworks and standards mentioned above. For example, some frameworks focus more on environmental issues, such as the Science Based Targets initiative and the Task Force on Climate-related Financial Disclosures (TCFD), while others have a broader scope that includes social and governance issues, such as the Global Reporting Initiative (GRI) and the ISO 26000 standard on social responsibility. There are also differences in the level of detail and specificity of the guidance provided by each framework, as well as differences in the way that they are implemented and audited.

Connectivity

Despite these divergences, there is also significant connectivity between the various frameworks and standards. Many companies use multiple frameworks and standards to guide their sustainability reporting and management practices. For example, a company may use the GRI framework to report on its sustainability performance, the TCFD recommendations to disclose climate-related risks and opportunities, and the ISO 14001 standard to manage its environmental impacts. The frameworks and standards also build on each other, with many of them referencing or incorporating elements of others.

Opportunities

The above guidelines and standards?provide opportunities and challenges for organizations.

One of the opportunities is that organizations can use these frameworks to enhance their reputation and attract investors, customers, and employees who value good governance, sustainability, and social responsibility. By demonstrating their commitment to these frameworks, organizations can differentiate themselves from their competitors and enhance their brand value

The various frameworks and standards provide opportunities for companies to improve their sustainability performance, manage risks, and enhance stakeholder engagement. By implementing these frameworks, companies can demonstrate their commitment to sustainability and responsible business practices, which can help to attract and retain customers, investors, and employees. Additionally, implementing these frameworks can help companies identify and manage risks related to environmental, social, and governance issues, which can lead to cost savings and increased operational efficiency.

Challenges

Implementing these frameworks and standards can also present challenges for companies. One of the main challenges is the complexity and diversity of the frameworks and standards, which can make it difficult for companies to navigate and understand them. Additionally, implementing these frameworks and standards can require significant resources, including time, money, and expertise. This can be particularly challenging for small and medium-sized enterprises (SMEs), which may not have the same resources as larger companies.

Synergies

Despite these challenges, there are also synergies between the various frameworks and standards. For example, many of the frameworks and standards share similar reporting requirements, such as the need to report on environmental impacts, social issues, and governance practices. By implementing multiple frameworks and standards, companies can leverage these synergies to streamline their reporting and management practices, which can lead to cost savings and increased efficiency.

The connectivity and synergy between corporate governance, COSO internal control framework, risk management reporting, financial management reporting, sustainability reporting, science-based net-zero target setting reporting, and internal and external auditing standards are critical for the success of organizations. While there are common points, differences, and inter-dependencies between these frameworks, organizations can use them to enhance their reputation, attract stakeholders, and manage risks. However, compliance with these frameworks can be challenging, and organizations need to prioritize the frameworks that are most relevant to their operations and stakeholders and integrate them into their overall management systems.

In conclusion, the various frameworks and standards related to sustainable development, ESG, and CSR share a common goal of promoting sustainability and responsible business practices. While there are divergences among them, there is also significant connectivity and opportunities for companies to improve their sustainability performance and manage risks. However, implementing these frameworks and standards can present challenges, particularly for SMEs. By leveraging synergies between the frameworks and standards, companies can overcome these challenges and demonstrate their commitment to sustainability and responsible business

THIS PAPER WILL BE SUBJECT TO ADDITIONAL DEVELOPMENTS IN THE NEAR FUTURE.

Author: George Florin Staicu

Global Sustainability Ambassador; member of the International Finance Corporation - Grow Learn Connect Directory of Training Professionals; USAID banking scholarship recipient; member of Green Forum; member of the Professional Risk Managers' International Association; Independent banking, microfinance, SME lending, CSR, ESG, UN SDGs, EU Green Deal, nature-based infrastructure solutions, circular economy, green - blue inclusive sustainable development & finance, IFRS - ISSB, EFRAG, GRI,?UNEP TCFD & PRB, European Banking Authority, Central European Bank, Basle Committee, CDP climate change, biodiversity and sustainability reporting standards, blended finance, Fintech & Ecotech promoter, Public-Private Partnership promoter, gender equality, social performance, learning & development, strategic planning, risk management, team leader, senior project manager, consultant, trainer and business coach

Member of the International Finance Corporation - Grow Learn Connect "Directory of Training Professionals" https://lnkd.in/dwPhDdqF?

Signatory of the International Finance Corporation - GLC Principles for Learning (https://lnkd.in/e7rkAn6)?

Global Ambassador of Sustainability - initiative - partnership UNESCO, UN Habitat and American University of Dubai - https://lnkd.in/dxaSfHaY?

Graduate of a 5 weeks (19 September - 20 October 2022) post-university training course?"Nature-based infrastructure for climate adaptation and sustainable development" offered by the Nature Based Infrastructure Resource Centre (NBI RC), International Institute for Sustainable Development (IISD), the Global Environment Facility (GEF) , the MAVA Foundation and the United Nations Industrial Development Organisation (UNIDO) - https://lnkd.in/dhsVViKZ?

Member of the Green Forum managed by the Green Growth Knowledge Partnership led by the Global Green Growth Institute, Organisation for Economic Co-operation and Development, UN Environment Programme, United Nations Industrial Organization and The World Bank Group. - https://lnkd.in/dnecxuDb?

Expert and Mentor at the "Anticorruption Solutions Through Emerging Technologies" (ASET) Tech Sprint project (June 10 - 24, 2022) a partnership between the Alliance for Innovative Regulation, the U.S. Department of State’s Bureau of International Narcotics and Law Enforcement Affairs and the U.S. Department of Treasury’s Office of Terrorist Financing and Financial Crimes - https://lnkd.in/d5hWtNpD?

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Post-graduate (March-May, 2022) of the Siena International School on Sustainable Development sponsored by the United Nations Sustainable Development Solutions Network (UN SDSN), the Italian Alliance for Sustainable Development (ASviS); Santa Chiara Lab – University of Siena; Enel Foundation; the Italian University Network for Sustainable Development (RUS) and the SDSN Europe - https://lnkd.in/eMcHGuNG?

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