With the emerging and increasing mandatory Sustainability reporting requirements like European Union's CSRD, IFRS' Sustainability Disclosure Standards and SEC's newly instituted Climate Change Disclosure adopted in March 2024, companies have been scrambling to build the required reporting framework and infrastructure to enable compliance.
These rules require companies to disclose information about the nature, scale, likelihood and/or timeframe of climate-related risks and risk management/carbon offsetting strategies in their Registration statements, Annual reports and Periodic reports (e.g Forms 10-K, Form 20-F).
The question on the lips of many business executives is where do we start from?
The International Federation of Accountants (IFAC) has proposed that an integrated internal control environment, based on an integrated mindset, is the foundation for transitioning to a more sustainable business model. This is because in their view an integrated internal control environment establishes robust data collection, processes and controls.
PWC have also provided great resources to help you better understand some of the reporting requirements and how you can begin to stare your company/clients towards compliance with these requirements.
Please lend your voice to this conversation, and share how you are, or intend to help your organization/clients begin their journey to building the frame work for Sustainability Reporting.
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Daniel Oluwaseun Oyekanmi, MBA, CMA
Analyst
Philadelphia PA
United States
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