ESG
Finally , CSOs should keep an eye on disclosure , which will soon be a vital force in operations if not already – as noted by Varley : “ While net-zero plans , converging standards , and more detailed reporting are underway , third-party assurance on disclosures ( including emissions ) is coming . The EU is well ahead , with mandatory sustainability reporting and ‘ limited ’ assurance requirements in the Corporate Sustainability Reporting Directive ( CSRD ), adopted in November 2022 . The US is expecting stronger climate disclosure requirements , including assurance from the Securities Exchange Commission , but may become embroiled in litigation given the current political climate .” Regulations are on their way .
Companies must adapt to this emerging reality , and there are many tough questions that must be asked : “ Robust conversations need to happen at an operational and board level . How far ahead of the curve does the C-suite want to be ? What ’ s your risk appetite ? What are the cost implications , the investments needed to improve your impact on the environment , and the value opportunities ? Where are you at with quality data , transparency on policies , the right technology , and assurance to verify emissions ? When do you want to undertake preparation ?” With all of this on the agenda , companies must take a conciliatory approach and not shy away from the challenges ahead . Collaboration should imbue the day : “ Collaboration is critical to get to scale in time . These new policies represent an unprecedented level of collaboration between government and the private sector , which I find energising . Ultimately , we need to fire the muscle of capitalism to get investment and action underway . There are plenty of synergies at play here , and opportunities for governments and companies alike to make this a win for people , profits , and the planet .”
58 April 2023