Impacts of climate-related risk and reporting requirements

ESG and sustainability-related pressures 

ESG and sustainability-related regulations ramp up the pressures many organizations face today. Regulations such as the U.S. Securities and Exchange Commission (SEC), California Climate Corporate Data Accountability Act, Federal Supplier Climate Risks and Resilience Proposed Rule, and the Corporate Sustainability Reporting Directive (CSRD) have resulted in new reporting requirements and processes that organizations are only now beginning to address. 

Importance of disclosure 

Whether companies and organizations are subject to ESG and sustainability-related regulations or not, disclosure is important for both internal and external stakeholders. ESG and sustainability-related disclosures assist organizations in identifying and managing risk, fostering transparency and accountability throughout the organization, ensuring compliance with regulations and supplier code of conducts and enhancing the organization’s positioning in the market. 

Differentiating regulatory requirements 

Two ESG and sustainability frameworks are emerging as the leaders for disclosure guidance, which include the greenhouse gas (GHG) protocol and