Navigating climate regulations as a board

🌍 Navigating the CSDDD with CDP: A Must-Read Guide🌍 The Corporate Sustainability Due Diligence Directive (CSDDD) is setting the stage for stronger corporate accountability and sustainability in the EU. But how can companies ensure they're meeting these expectations? 🤔 The latest CDP Policy Explainer provides a detailed roadmap, highlighting how companies can address the CSDDD requirements as well as how they align with CDP disclosures. In addition, the guide covers climate transition plans in alignment with global standards, including IFRS S2, ERFAG (ESRS), SEC, GRI, and GFANZ. 🔍 What you’ll learn: 1️⃣ Clear Transition Plan Elements: Governance, scenario analysis, risk management, strategy, financial planning, and target setting – all critical pieces for a successful climate transition plan. 2️⃣ Standards & Frameworks: Learn how your disclosures align with leading frameworks like IFRS, ESRS, and GFANZ, making sure you're compliant with CSDDD requirements. 3️⃣ Actionable Insights: From governance to value chain engagement, the guide shows exactly where and how to report on your company’s climate risks, opportunities, and progress. 4️⃣ Full vs. Partial Coverage: Know which elements the standards require and where CDP goes beyond, helping you stay ahead of the regulatory curve. 🌱 Why it matters: With global regulatory pressure increasing, aligning with these frameworks can boost a company’s credibility, manage risks, attract capital, and ensure long-term resilience. #CDP #CSDDD #Sustainability #ClimateTransition #IFRS #ISSB #GRI #ESRS #CSRD #GFANZ #CorporateGovernance #ClimateStrategy #NetZero #TransitionPlans #DueDiligence #ESGRegulation

#Climatechange presents both risks and opportunities for businesses. For decision makers, knowing where and how to start is the first step. This brand new guide, written by Deloitte in collaboration with the World Economic Forum, explores the role that Chairs, Non-Executive Directors and Boards must play to guide their organisations toward #sustainable practices. It’s a comprehensive framework designed to help business leaders to navigate the complexities of climate change response, and emphasises the importance of integrating climate considerations into Board discussions, setting clear targets and ensuring accountability. The guide is full of useful insights, case studies and considered guidance that’s applicable for all organisations – a must read for Chairs and NEDs! #decarbonisation #boards #climatetransition #Deloitte #WEF Rebekah Cheney John O'Brien Tom Imbesi Junko Watanabe Dennis Chow

Corporate Sustainability Reporting Directive (#CSRD) is changing the game. And PwC's guidebook is here to help you stay ahead. It simplifies the process of preparing sustainability statements that meet the European Sustainability Reporting Standards (ESRS). Here’s what you need to know: • Start with structure. Sustainability statements are broken down into four key sections: General, Environmental, Social, and Governance (ESG). Simple, right? • Double materiality is key. This means looking at the environmental and social impacts of your operations, while also considering how sustainability affects your financial performance. • Think financial impact. You’ll need to show how sustainability risks and opportunities influence profits, balance sheets, and cash flows, both now and in the future. • Boards have a big role to play. They must integrate sustainability into strategy, ensure accurate reporting, and align executive pay with ESG goals. • Climate action is front and center. Transition plans, emissions data, and the financial impacts of climate risks are non-negotiable under ESRS E1. • Don’t forget the EU Taxonomy. Reporting on sustainability-related revenues and expenses is essential for compliance. • Transparency wins. Clear disclosures build trust, attract investments, and keep you ahead of regulations. • Talk to your stakeholders. Engaging with them ensures your reporting reflects real-world needs. • Stay adaptable. Standards are evolving, and keeping up is crucial for long-term resilience. PwC has turned a complex framework into actionable insights. Making it easier for organizations to navigate these changes. -------------------------------------------- So, how are you positioning your business to lead in sustainability reporting?

"𝗘𝗦𝗚 𝗮𝗻𝗱 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗚𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲: 𝗔 𝗕𝗼𝗮𝗿𝗱𝗿𝗼𝗼𝗺 𝗜𝗺𝗽𝗲𝗿𝗮𝘁𝗶𝘃𝗲" 𝗕𝗼𝗮𝗿𝗱𝘀 𝗼𝗳 𝗗𝗶𝗿𝗲𝗰𝘁𝗼𝗿𝘀 𝗮𝗿𝗲 𝗻𝗼𝘄 𝗮𝘁 𝘁𝗵𝗲 𝗵𝗲𝗮𝗿𝘁 𝗼𝗳 𝘁𝗵𝗲 𝗘𝗦𝗚 𝘁𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 ! The 𝗣𝘄𝗖 & 𝗖𝗼𝗻𝗳𝗲𝗱𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗜𝗻𝗱𝗶𝗮𝗻 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆(𝗖𝗜𝗜) Report – "𝗘𝗦𝗚 𝗚𝘂𝗶𝗱𝗲𝗯𝗼𝗼𝗸 𝗮𝗻𝗱 𝗥𝗲𝗮𝗱𝘆 𝗥𝗲𝗰𝗸𝗼𝗻𝗲𝗿 𝗳𝗼𝗿 𝗕𝗼𝗮𝗿𝗱𝘀 𝗼𝗳 𝗗𝗶𝗿𝗲𝗰𝘁𝗼𝗿𝘀" makes it clear: ESG is no longer just a compliance exercise- it’s a strategic imperative that impacts financial performance, risk management, and corporate resilience. 𝗞𝗲𝘆 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝗥𝗲𝗽𝗼𝗿𝘁: ✔ 𝗕𝗼𝗮𝗿𝗱𝘀 𝗺𝘂𝘀𝘁 𝗹𝗲𝗮𝗱 𝗘𝗦𝗚 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆, 𝗻𝗼𝘁 𝗷𝘂𝘀𝘁 𝗼𝘃𝗲𝗿𝘀𝗲𝗲 𝗶𝘁: Regulatory bodies and investors are holding directors accountable for ESG risks and opportunities. ✔ 𝗘𝗦𝗚 𝗱𝗶𝘀𝗰𝗹𝗼𝘀𝘂𝗿𝗲 𝗺𝗮𝗻𝗱𝗮𝘁𝗲𝘀 𝗮𝗿𝗲 𝗲𝘃𝗼𝗹𝘃𝗶𝗻𝗴: Indian businesses must align with SEBI’s Business Responsibility & Sustainability Reporting (BRSR) guidelines while integrating global ESG frameworks like ISSB, GRI, and TCFD. ✔ 𝗚𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲 𝗶𝘀 𝘁𝗵𝗲 𝗯𝗮𝗰𝗸𝗯𝗼𝗻𝗲 𝗼𝗳 𝗘𝗦𝗚: Strong governance structures, independent ESG committees, and clear accountability frameworks are essential for success. ✔ 𝗠𝗮𝘁𝗲𝗿𝗶𝗮𝗹𝗶𝘁𝘆 𝗺𝗮𝘁𝘁𝗲𝗿𝘀: ESG strategies must focus on industry-specific risks, from carbon emissions to human rights in supply chains. ✔ 𝗦𝘁𝗮𝗸𝗲𝗵𝗼𝗹𝗱𝗲𝗿 𝗲𝘅𝗽𝗲𝗰𝘁𝗮𝘁𝗶𝗼𝗻𝘀 𝗮𝗿𝗲 𝘀𝗵𝗶𝗳𝘁𝗶𝗻𝗴: Investors, employees, and regulators now demand transparent, measurable, and verifiable ESG commitments. 𝗪𝗵𝘆 𝗧𝗵𝗶𝘀 𝗠𝗮𝘁𝘁𝗲𝗿𝘀 𝗳𝗼𝗿 𝗕𝗼𝗮𝗿𝗱𝘀: ✅ 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗖𝗼𝗻𝗳𝗶𝗱𝗲𝗻𝗰𝗲: Companies with clear ESG roadmaps attract more capital and reduce regulatory risk. ✅ 𝗥𝗲𝗽𝘂𝘁𝗮𝘁𝗶𝗼𝗻 & 𝗥𝗶𝘀𝗸 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁: Boards that ignore ESG risk becoming obsolete as sustainability-linked regulations tighten. ✅ 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗔𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲: ESG integration isn’t just about compliance- it’s about securing long-term business resilience and profitability. 𝗪𝗵𝗮𝘁’𝘀 𝗡𝗲𝘅𝘁? 𝗕𝗼𝗮𝗿𝗱𝗿𝗼𝗼𝗺 𝗘𝗦𝗚 𝗣𝗿𝗶𝗼𝗿𝗶𝘁𝗶𝗲𝘀 𝗳𝗼𝗿 𝟮𝟬𝟮𝟱: 📍 Ensure 𝗘𝗦𝗚 𝗮𝗰𝗰𝗼𝘂𝗻𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗮𝘁 𝘁𝗵𝗲 𝗯𝗼𝗮𝗿𝗱 𝗹𝗲𝘃𝗲𝗹 with specialized ESG committees. 📍 𝗦𝘁𝗿𝗲𝗻𝗴𝘁𝗵𝗲𝗻 𝗘𝗦𝗚 𝗱𝗮𝘁𝗮 𝗶𝗻𝘁𝗲𝗴𝗿𝗶𝘁𝘆 & 𝗿𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 to align with evolving disclosure regulations. 📍 𝗜𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗲 𝗰𝗹𝗶𝗺𝗮𝘁𝗲 𝗿𝗶𝘀𝗸 & 𝘀𝗼𝗰𝗶𝗮𝗹 𝗴𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲 into corporate risk management frameworks. 📍 𝗘𝗻𝗴𝗮𝗴𝗲 𝗽𝗿𝗼𝗮𝗰𝘁𝗶𝘃𝗲𝗹𝘆 with investors, regulators, and employees to build an ESG-driven culture. 𝗜𝘀 𝘆𝗼𝘂𝗿 𝗕𝗼𝗮𝗿𝗱 𝗘𝗦𝗚-𝗿𝗲𝗮𝗱𝘆 𝗳𝗼𝗿 𝟮𝟬𝟮𝟱? How are you preparing for the next wave of corporate governance & sustainability challenges? Read the attached for more insights👇 #ESG #CorporateGovernance #BoardLeadership #Sustainability #RiskManagement #ESGStrategy #SEBI #SustainableFinance #PwC #CII #BoardroomAgenda

Board Oversight of Climate Risks and Opportunities & Case Studies | Governance for Stakeholders and Sustainable Finance Institute Asia {A} Key Salient Points 1. Governance: Establish board roles for climate oversight and dedicated sustainability committees. Enhance expertise in climate and ESG issues. 2. Climate Strategy: Use scenario planning for climate resilience and identify opportunities in decarbonization. Invest in climate-friendly innovations. 3. Integrated Risk Management: Conduct assessments to identify climate-related risks and opportunities. Develop strategies for GHG reduction and climate adaptation. 4. Metrics, Targets, and Incentives: Align climate metrics with business goals and set science-based targets linked to incentives. Regularly review climate performance. 5. Disclosure and Transparency: Adopt TCFD, GRI, and IFRS frameworks for climate reporting. Ensure 3rd-party assurance and avoid greenwashing. 6. Regulatory Compliance and Preparedness: Monitor and comply with changing climate regulations. Address potential legal liabilities. 7. Leadership and Culture: Commit to climate action and educate stakeholders. Promote collaboration to integrate sustainability into the organization. . . . {B} Cases 1. Xcel Energy: Issued $4.7 billion in green bonds for fourteen wind projects. a. Impact: Developed over 3 GW of renewable energy. Reduced carbon emissions by over 5 million tons annually. Decreased energy costs for customers. b. Insight: Green financing aligns financial goals with sustainability, promoting leadership in clean energy. .. 2. AET Tankers (MISC): Transitioned to dual-fuel and ammonia-powered ships. Invested in digital initiatives for fleet efficiency. a. Impact: Short-term energy efficiency gains. Progress towards zero-carbon shipping. b. Insight: Innovative technologies can reduce carbon footprints. .. 3. Panama Canal. Climate-induced water scarcity affects shipping. a. Impact: Increased pressure on global trade routes. b. Insight: Climate resilience is crucial for operational continuity in infrastructure. .. 4. Climate Impact on Supply Chains. Weather disruptions strain supplier relationships. a. Impact: Increased supplier replacement rates due to extreme weather. b. Insight: Assess climate risk for geographic diversification and supply chain resilience. .. 5. Banking Sector's Response to Climate Risks: U.S. banks limit lending in high-risk areas; banks in China and Poland adapt to regulatory pressures. a. Impact: Loan pricing reflects environmental risks. b. Insight: Integrating climate risks into lending practices protects against financial risks. .. 6. EU Electric Utilities: Scenario: Evaluated under EU net-zero regulations a. Impact: Early action mitigated asset impairment risks; delays led to financial losses b. Insight: Aligning with regulatory frameworks to manage financial risks .. More (68 pgs)👇 Credits: Guan Seng Khoo, PhD; Prof Yuen Teen Mak (PhD, FCPA)

This guide by Canada Climate Law Initiative draws together current legal and best practice guidance for audit committees, to assist them in taking a leadership role in effective climate governance. The guide can also be used by the board, its risk committee or any other committees that the board has assigned oversight to, always understanding that it is the board of directors that is ultimately responsible for oversight and management of climate change in the best interests of the company. External auditors are increasingly integrating climate issues into external audits, and it is only a matter of time before they will raise climate issues as a ‘key audit matter’ for some entities, so the audit committee must be prepared. The guide offers a series of questions that the audit committee can ask, in terms of assuring itself that financial reporting accurately reflects the company’s governance, strategic plan, risk management, and metrics and targets relating to climate change. Thanks to author Sarra Janis and contributors Meghan Harris-Ngae, Roopa Davé and Ravipal Bains #audi #auditcommittee #governance #climatechange #oversight

California Climate Regulations are coming, yet guidance for companies in scope is slow to develop. FSI Consulting has put together a list of actions that companies can take today, that will prepare them for what will likely be a shortened runway for compliance. If you and your company are struggling with CA readiness and where to start, here are 5 no regret actions you can start taking towards compliance: 1- Engage with Key Stakeholders and Determine Overall Approach  Start by assembling a cross-functional team (Sustainability, Finance, Legal, Operations) to manage and support efforts. Work as a team to secure executive and Board-level buy-in while ensuring adequate resources and oversight. Investigate options to keep work in-house or engage with a consultant to calculate GHG emissions and/or prepare a climate risk report.   2- Start Compiling Climate Risk Data  Compile a list of potential physical risks (floods, fires, heat, etc.) to facilities, and research potential transition risks (carbon pricing, regulations, market changes, etc.) based on your organizational boundaries. Think about and identify internal climate risk governance activities and collect relevant metrics and targets for evaluating climate risk mitigation activities. Review peer companies’ climate risk reports in the public domain.   3- Evaluate GHG Emissions Inventory Reporting Readiness  Conduct an internal review of current GHG inventory processes (with future attestation in mind), assess data quality management systems and identify reporting gaps versus requirements.   4- Engage Third-Party Assurance Provider for GHG Emissions Inventory  Select and onboard a qualified verification body and get early feedback on data collection processes and controls.   5- Review Climate Strategy Documentation  Assess current climate commitments and targets, identify gaps in current documentation and create a clear paper trail for compliance purposes.