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Mandatory Climate Reporting

Governments and regulatory bodies worldwide, including the International Sustainability Standards Board (ISSB) within the IFRS Foundation, are intensifying efforts to ensure businesses are transparent about their environmental impact, particularly greenhouse gas (GHG) emissions. This transparency provides stakeholders—investors, customers, regulators, and communities—with a clear understanding of a company’s contributions to climate change and the measures being taken to mitigate these effects.

Forward-thinking businesses recognise that by viewing mandatory reporting costs and efforts as a strategic investment, they can drive long-term value and resilience - while also leveraging the following benefits:

Access to capital at lower costs

Compliance with sustainability standards meets lender demands and provides access to products like sustainability-linked loans, catering to investors who increasingly seek sustainable investment opportunities.

Early adoption or best practice drives enhanced reputation

Improve market position and customer loyalty with a strong ESG performance that demonstrates a commitment to addressing climate change and mitigating its effects.

Attraction, engagement and retention of talent

Climate transition leaders attract and retain top talent, particularly younger workers who prioritise sustainability and seek purpose in their work.

Accelerated innovation for new market opportunities

Sustainability drives innovation by encouraging and sometimes forcing the development of more sustainable products and services, opening new markets and customer segments.

Our approach to Mandatory Climate Reporting focuses on

Stage 01.

Audit and Plan

Readiness assessment and gap identification: Conduct a comprehensive assessment to identify gaps.
Early stakeholder engagement: Engage stakeholders early and provide education across relevant levels of your business and with key external stakeholders like suppliers.
Double materiality assessment: Understand the expectations of your stakeholders, identify non-financial risks, and prioritise them.
Governance and planning: Strengthen governance and plan the necessary resources, systems, and processes for the next phase.

Stage 02.

Implement & Embed

Data collection and systems: Establish robust data collection processes and systems.
Scopes 1, 2, and 3 inventory and verification: Complete your inventory and verification for Scopes 1, 2, and 3 emissions.
Scenario analysis and resilience assessment: Conduct scenario analyses and resilience assessments.

Stage 03.

Optimise Impact

Reporting and assurance: Compile your reporting and ensure both internal and external review and assurance.
Stakeholder engagement: Re-engage all stakeholders to conclude the conversations started in Stage 1 and demonstrate the value created through your efforts.

Why The Growth
Activists?

Partnering with us empowers your organisation to drive early cross-functional ownership of climate transition practices and reporting. We ensure compliance and strategic alignment, maximising the value of your investments while benefiting both the planet and its people.

Becoming a B Corp Unlocking Impact and Value

Becoming a B Corp is a powerful way to show an organisation’s commitment to meeting the highest standards of verified social and environmental performance, public transparency, and legal accountability, and aspire to use the power of markets to solve social and environmental problems.

FAQs

Why is climate reporting essential?

Climate reporting is essential because it meets the accelerating expectations for businesses to have evidence-based practices for assessing material issues, managing impacts, and setting and reporting on targets. Stakeholders, including investors, customers, and regulators, increasingly demand transparency on carbon footprints and net-zero targets. By preparing and complying with regulatory requirements, your organisation stays ahead of the curve, enhancing its reputation and competitiveness. Additionally, as sustainability reporting evolves, mandatory reporting is expected to expand and encompass broader areas, making early compliance a strategic advantage.

What are the ISSB Standards?

The ISSB Standards ensure that companies provide sustainability-related information alongside financial statements, within the same reporting package. They are designed to be used with any accounting requirements and are built on the concepts underpinning the IFRS Accounting Standards, which are required in more than 140 jurisdictions. This makes the ISSB Standards suitable for global application, creating a truly worldwide baseline.

How long does Mandatory Climate Reporting take?

The timeline can vary based on your company’s stage of preparedness and fiscal year schedule. It is also influenced by the complexity of your operations and the maturity of your current sustainability reporting practices.