Financial reporting is the communication that allows users of financial statements to evaluate the profitability and financial position of a company (Scott, 2009). This information is provided within an accounting framework aimed at ensuring neutrality, comparability and understandability for all users of the financial statements. The key role is to reduce information asymmetry between managers and stakeholders such as investors, creditors, governments, employees, consumers and the general public. These stakeholders are direct or indirect participants in capital markets from which companies compete for financing in the form of equity or credit (Scott, 2009). In Canada, financial reporting is overseen by the Accounting Standards Board (ACB) whose mandate is to “support informed economic decision-making by maintaining a framework that provides a basis for high-quality information about financial performance” (ICCA, 2011). . The question of whether the SBA should adopt new disclosure requirements for companies to report on their environmental or sustainability performance is fundamentally a question of whether environmental performance and sustainability have a role in economic decision-making. . The answer depends on the link between environmental performance and sustainable development which influences financial performance. In this paper, the stakeholders for whom this information is important will be discussed, evidence that disclosure is sought and requested will be presented and evidence that environmental performance and sustainability are drivers of financial performance will also be discussed. Finally, it will be demonstrated that the SBA should adopt new disclosure requirements as part of its efforts. First, let's explore......middle of document......h 30). The committee urges the Government of Canada to improve disclosure requirements for investors and the Canadian extractive industry. Retrieved from http://www.share.ca/files/07-03-30%20-%20Roundtable%20Advisory%20Report %20Press%20Release.pdf .Sutton, Philippe. A document for the Victorian Commissioner for Environmental Sustainability, Strategy of Green Innovations. (2004). A perspective on environmental sustainability? Retrieved from http://www.ces.vic.gov.au/ces/wcmn301.nsf/obj/cesplan/$file/A+Perspective+on+environmental+sustainability.pdf Waddock, S and Smith, N. (2000) . Corporate Responsibility Audits: Doing Well by Doing Good. Sloan Management Review. Wong, Derek. (November 10, 2010). New environmental disclosure guidelines from Canadian regulators [web log post]. Retrieved from http://www.carbon49.com/2010/11/new-environmental-disclosure-guidance-from-Canadian-regulators/