Home topics news Credit: Appolinary Kalashnikova News News Mandatory climate reporting: 3 C’s for preparedness Yajush Gupta August 15, 2023 Energy transition specialists, Partners in Performance, stress the impending impact of mandatory non-financial climate reporting on investors, financial institutions, corporations, and trusts. As the deadline approaches, organizations are urged to assess their readiness and establish a solid roadmap. With the release of the Climate-related Financial Disclosure consultation paper by the Australian Treasury in June, a pivotal step towards implementing a new reporting framework is taken. This shift focuses on non-financial data such as sustainability and climate metrics. The government aims to integrate this information with existing financial structures, requiring timely action from affected entities. Rob Fowler, Partner at Partners in Performance, emphasizes proactive measures as international frameworks accelerate. Australia’s commitment to global momentum and the imminent reporting period for listed companies necessitate timely preparation. Fowler outlines three key considerations for businesses: Capability: Evaluate expertise, skills, and technology for effective data collection and analysis. Capacity: Assess resource availability, including human, financial, and technological support. Credibility: Establish robust processes and governance to ensure trustworthy data. Third-party audits enhance credibility. Fowler underscores the urgency due to the risks of greenwashing in Australia’s corporate landscape. Transparency and data-backed narratives are crucial defenses. Partners in Performance notes the potential value in emphasizing non-financial indicators, unlocking improvements in production, energy conservation, labor productivity, and asset uptime. In the updated reporting regime, larger Australian companies must disclose annual data including carbon emissions, scenario analysis, and transition plans.