You may have heard of the Sustainable Development Goals and the United Nations Paris Climate Agreement. The Climate Agreement is a legally binding international treaty signed by 194 countries, meaning significant measures must have been implemented and taken affect by 2030.
Internationally, the CSRD (Corporate Sustainability Reporting Directive) took effect in the EU in January 2023, mandating ESG reporting in line with the ESRS (European Sustainability Reporting Standards). The ISSB (International Sustainability Standards Board) launched its IFRS S1 and S2 standards in June 2023 to a global audience, providing standardised disclosure requirements for sustainability performance and opportunities, and also for specific, climate related disclosures. From 2024 and the few years following, these are also being incorporated into regulation within Australia that will impact most businesses in the country, starting with the larger companies and those that are publicly listed, with pressures rolling down to smaller companies.
Banks and financial institutions are already feeling the pressure in their lending requirements, which you might have heard they are restricting the industries and companies they will work with.
We see this as opportunity.
It’s an opportunity for our clients to get ahead of the pack. To recognise the risk and the reporting obligations early and address those, whilst identifying new opportunities that can provide long-term benefit and present advantageous changes for both operations, financial improvements and market positioning.