Financial reporting is the communication that allows users of financial statements to evaluate the profitability and financial health of a company (Scott, 2009). This information is provided within an accounting framework to ensure 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 participate directly or indirectly in the 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 (ASB) whose mandate is to “support informed economic decision making by maintaining a framework that provides a basis for high-quality information about financial performance” (CICA, 2011) . . The question of whether the ASB should issue new disclosure requirements for companies to report on environmental performance or sustainable development is fundamentally a question of whether environmental performance and sustainability play a role in economic decision-making. The answer depends on the connection between environmental performance and sustainable development which influence financial performance. In this paper we will discuss the stakeholders for whom this information is important, we will present evidence that disclosure is required and solicited, as well as evidence that environmental performance and sustainability are factors in financial performance. Finally, it will be argued that the ASB should adopt new disclosure requirements in its efforts. First, let's explore... half of the document... h 30). Panel Urges Canadian Government to Improve Disclosure Requirements for Investors and Canadian Mining Industry Retrieved from http://www.share.ca/files/07-03-30%20-%20Roundtable%20Advisory% 20Report%20Press%20Release.pdf .Sutton, Philip. 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.pdfWaddock, S and Smith, N.(2000) . Corporate responsibility audit: doing well by doing good. Sloan management review. Wong, Derek. (2010, November 10). New environmental disclosure guidance from Canadian regulators [Web log message]. Retrieved from http://www.carbon49.com/2010/11/new-environmental-disclosure-guidance-from-Canadian-regulators/