Mandatory climate reporting: three C's for optimal preparedness
The epoch of mandatory non-financial climate reporting is rapidly drawing closer and will no doubt have a profound impact for investors, banks, corporations and trusts, advise energy transition experts Partners in Performance.
embrace this transformative change with foresight and preparation. By adapting to the evolving requirements, businesses will not only fulfil compliance mandates and minimise risk, but will also unlock opportunities for sustainable growth and global alignment.”
W
ith the deadline looming,
disclosure, leveraging established auditing and
now is a crucial time for
assurance structures. It is a big change, with
The three C’s
organisations to determine
an ambitious timeline, making it imperative for
Fowler points to exploring the following
whether they are adequately
affected organisations to act now.
three key considerations to get businesses on the right track:
prepared for the impending
According to Rob Fowler, Partner, Energy
changes. Understanding the essential tasks
Transition, Partners in Performance: “The real-
and ensuring there is a solid roadmap to
Capability:
ity is that this push to integrate non-financial
As organisations embark on a path towards
get there will be vital.
information is not going away. International
mandatory non-financial reporting, it be-
The Australian Treasury’s release of
bodies are releasing frameworks and standards
comes paramount to evaluate whether your
the climate-related financial disclosure
at pace, with Australia committed to follow-
team has the requisite expertise, skills and
consultation paper in June marks a decisive
ing the global momentum. And time is of the
technology to effectively gather, analyse and
step towards implementing the new reporting
essence, with the first reporting period for
disclose pertinent non-financial information.
regime for companies across Australia. At
Australia and New Zealand’s listed companies
Identifying any potential gaps in capabilities
its core, the reporting shift centres on non-
just 10 months away. Now is the time to
early on will enable you to proactively ad-
financial information, such as sustainability
check whether organisations have the right
dress them and ensure a seamless transition.
issues and climate-related metrics.
internal wiring to face the challenges created
Capacity:
by mandatory reporting of non-financials.
Gauge whether or not there are adequate
The government’s approach aims to integrate non-financial information with the exist-
“The path to success lies in a proactive
resources available within the timelines
ing framework of financial data and corporate
approach by all stakeholders, who must
required. Assess if there are sufficient
34 Sustainability Matters - Oct 2023
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