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Navigating the Climate Disclosure Landscape: 2023 update

The Climate Governance Initiative has updated its explainer 'Navigating the Climate Disclosure Landscape' with information on mandatory and voluntary disclosure frameworks, transition planning, and key takeaways and questions for board directors driving climate action.

The publication is supported by an interactive tool through which directors can explore climate initiatives and investor data.

Why is climate disclosure important for board directors? Ensuring transparent disclosure of climate risk and opportunity, so that investors and other external stakeholders are provided with relevant information to make decisions, is integral to the role of board directors. This explainer provides an overview of the evolving and interconnected landscape of reporting standards and frameworks, carbon footprint measurement and climate target setting. There are a range of tools available to support companies at all steps of the journey. This summary, alongside our interactive navigation tool, will help you understand and identify the initiatives most relevant to the company boards you sit on.

Key takeaways for board directors As a board director, it is important to understand the tools and standards being used by the organisations you represent to measure climate impact, set and monitor targets, continually improve performance and report to stakeholders. The key takeaways from this explainer can be summarised as follows:

  • The board plays an important role in ensuring all statutory reporting and disclosure obligations are met, and in pushing for best practice on voluntary reporting. Board directors should ensure that appropriate governance structures are in place to deliver on net-zero commitments, including selection of scientifically robust disclosure tools, and effective oversight and implementation across carbon accounting and reporting. The disclosure and reporting requirements for your company will depend on the jurisdiction(s) it operates in, and an outline of mandatory disclosure requirements is included below.

  • The board should be confident that the company is making good progress against its climate goals, particularly when compared with other companies. This is something investors will consider in decision making – the World Benchmarking Alliance assesses corporate sustainability performance in key industry sectors.

  • Being well-informed of future trends is important for strategic planning and decision making in the boardroom. The global harmonisation of sustainability standards is already underway, with the International Sustainability Standards Board (ISSB) releasing its two inaugural standards in June 2023. Going forward, there will be a growing demand for standardised, high quality transition plans that show how companies will meet net-zero targets. Consider ways that you can share and exchange your organisation’s experiences through coalitions and direct engagement, not only to accelerate the net zero transition, but also to create a level playing field and build industry excellence.


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