Are you ready for evolving sustainability reporting requirements?
Momentum is building towards the introduction of mandatory ESG and sustainability reporting standards in Australia.
Significantly:
The International Sustainability Standards Board is working towards finalising a definitive standard of global disclosure standards by 2023 which will merge various national voluntary ESG frameworks
In December last year, Australian Treasury published a consultation paper and issued a press release affirming that large companies and financial institutions should expect mandatory climate related risk reporting from 2024
The ASIC and the ASX have provided guidance that organisations should report climate risk aligned to the Taskforce for Climate Related Financial Disclosure (TCFD) disclosure requirements
The Global Reporting Initiative (GRI) published an update to its Universal Standards beginning 1 January 2023. These standards provide an approach to reporting a range of issues that represent an organisations most significant impacts on the economy, environment and people (including human rights).
The Taskforce for Nature Related Financial Disclosures is expected to release a complete set of recommendations for organisations in September 2023 which will enable organisations to report and act on evolving nature-related risks.
With these developments, executives are now prioritising sustainability reporting on the corporate agenda and are actively preparing to meet future disclosure requirements; or otherwise align to leading industry practice.
We recommend a staged approach to developing sustainability reporting capability that is focussed around providing transparency on the ESG issues that are most relevant and topical from a business, stakeholder and regulatory perspective, and which can be matured over time.
Rennie can support with:
ESG materiality assessments to identify and prioritise the ESG topics that should be disclosed in sustainability reports
ESG Reporting framework selection to identify the appropriate framework to make disclosures against (e.g., SDG, GRI, TCDF)
Reporting gap assessment to identify where there are gaps between current data and reporting practices and those needed to meet future reporting requirements
Developing reporting roadmaps to mature reporting capability over time in line with changing disclosure requirements
Reporting blueprints to provide clear guidance on what needs to be disclosed in the organisation’s sustainability report
Contact Arvind Sharma at asharma@rennieadvisory.com.au for a discussion on how we can support your organisation.