Climate and Biodiversity-related Disclosures

Aligning with Reporting Frameworks

Organisations are seeking guidance on aligning their climate and biodiversity-related disclosures with reporting frameworks such as the XRB Climate Standards, the Task Force on Climate-related Financial Disclosures (TCFD) and the Global Reporting Initiative (GRI) and the GRI Biodiversity Standard. This involves understanding the specific requirements of these frameworks, including disclosure of climate risks and opportunities, governance structures, strategy, and risk management processes related to climate change.

We recommend familiarising yourself with the key principles and requirements of reporting frameworks like XRB Climate Standards, TCFD and GRI. Evaluate your current reporting processes and identify gaps in alignment with these frameworks. Develop a structured approach to gather relevant data and information, ensuring accuracy and completeness. Enhance transparency in your reporting by clearly communicating how climate and biodiversity risks and opportunities are integrated into your business strategy and decision-making processes. Regularly review and update your disclosures to ensure ongoing compliance with these frameworks.

Assessing and Reporting Climate-related Financial Impacts

Organisations are focusing on assessing and reporting the financial impacts of climate change on their business. This includes understanding both the direct and indirect financial implications, such as potential asset devaluations due to climate risks, costs associated with transitioning to lower emissions, and the financial benefits of adopting sustainable practices.

We recommend conducting a comprehensive analysis to assess the financial impacts of climate change on your business. This should include both the risks (eg, asset stranding, increased operational costs) and opportunities (eg, access to new markets, improved efficiency) arising from climate change. Develop methodologies for quantifying these impacts and integrate them into your financial reporting. Ensure that your financial disclosures are clear, consistent, and provide stakeholders with meaningful information about how climate change is affecting your business financially.

Biodiversity-related Disclosures and Impact Assessment

There is a growing emphasis on understanding and reporting the impact of business activities on biodiversity. This involves assessing how operations affect ecosystems and biodiversity and disclosing these impacts in line with emerging standards and stakeholder expectations.

We recommend you begin by conducting a thorough assessment of your business activities' impact on biodiversity, considering both direct and indirect effects. Develop a framework for measuring and reporting these impacts, which could include metrics such as habitat loss, species affected, and ecosystem services impacted. Incorporate biodiversity considerations into your overall sustainability strategy and reporting. Be transparent in your disclosures about the measures you are taking to mitigate negative impacts on biodiversity and enhance positive outcomes. Regularly review and update your biodiversity-related disclosures to reflect new insights and evolving best practices.