True and Fair
As the world faces climate change and rising social inequalities, there is a growing realisation that what we make depends on the use of carbon, access to water and clean air, or unpaid labour in the supply chain. While such resources may seem free for businesses, their price is often shouldered by society. Our campaign aims to change this.
As host of this campaign, SVI believes that businesses should recognise and disclose these costs in their financial statements. Directors may agree with this, either to give a true and fair view or because they want to make an appropriate commitment. And they can do this using the existing legal and accounting frameworks.
The True and Fair requirement for company accounts
SVI commissioned George Bompas KC, to give a new legal opinion on the requirements for annual accounts to present a ‘true and fair’ view of a company’s assets, liabilities, financial position and profit and loss, in the context of sustainability issues.
The opinion reminds UK company directors that:
they must provide additional information if this is necessary to give a true and fair view
they have a positive duty to consider whether that information includes sustainability issues, such as their contribution to climate change
they might want to deliberately structure commitments in such a way as to create future or even present year obligations, which impact upon the accounts.
What to expect in 2025
Together with its partners, SVI is developing guidance and resources for a range of audiences, including:
Company directors who want their companies to account for their impacts on people and planet.
Investors who, as one of the primary users of financial accounts, have a significant role to play in explaining to businesses what is material to them, and so what they expect to see in the financial statements.
Lawyers and legal networks in numerous countries to explore the implications of the company and investor guidance and resources for their jurisdiction.
No matter where you are based, we at SVI welcome your involvement. Join the campaign and be part of SVI’s movement to change the way the world accounts for value.
Learn more and get involved!
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Join the campaign
SVI invites anyone wishing to get involved in or receive updates about the Campaign for True and Fair Accounts to register their interest.
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Read the opinion in full
Here is the full opinion issued by George Bompas KC
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True and Fair FAQs
What is the true and fair requirement? What is a constructive obligation? Find answers to these and other Frequently Asked Questions
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Read SVI's press release
This includes the key findings, useful context, and insightful quotes about the opinion
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True and Fair?
Read Jeremy Nicholls’ article about how directors should be presenting accounts in the 21st century
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Sustainability Commitments and Financial Accounting
This blog summarises two important developments relating to the concept of ‘constructive obligations’, a nuanced element of financial accounting, within the context of sustainability commitments that companies are making.
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Boards can, and must, account for climate change
Accounting may not seem the most obvious arena for ambitious climate action, but a recent legal opinion highlights real opportunities for boards to drive sustainability through the company accounts.
What people are saying:
Our partners in the Campaign for True and Fair Accounts
Here are the partners that have joined our Campaign for True and Fair accounts. Together, we will be developing guidance and support for directors who want their companies to account for their impact on people and planet. We are also partnering with the Global Alliance for Impact Lawyers (GAIL) in six other countries to explore how other jurisdictions can evolve their interpretation of true and fair.
