As CFOs are faced with the critical role in crafting a clear sustainability reporting plan that not only meets compliance requirements but also drives value, it is essential for finance leaders to fully understand the main areas where their organisations need to focus.
According to a Deloitte report, organisations must look into various areas including people, processes, and data to evolve their reporting capability. By identifying key areas that need to mature and implementing targeted, pragmatic interventions, Deloitte says oganisations can meet compliance deadlines while laying the groundwork for long-term sustainability success.
Sustainability and climate disclosure standards offer a clear end objective: robust information about significant sustainability and climate-related risks and opportunities and their financial and non-financial impacts, including:
• The governance processes, controls and procedures to monitor and manage sustainability risks and opportunities.
• The approach to addressing sustainability-related risks and opportunities that impact business model and strategy.
• The metrics and targets that are used to assess, manage and monitor sustainability risks and opportunities.
For many organisations, Deloitte says achieving compliance should not be under-estimated. CFOs need to provide a clear path to meet reporting obligations.
Different organisations’ approaches to sustainability reporting show a common set of capabilities is needed to build an effective model: leadership; operating model; governance; and data.
Sustainability reporting compliance can be complex depending on regimes, and it is necessary for CFOs to have a full grasp of their field: use existing data, processes and architecture, and build capability where you have gaps.
