The broadening scope of sustainability reporting
The next trend to be aware of in global reporting architecture is the broadening scope of impact areas which are being included in reporting requirements, as well as the scope of company sizes required to report.
In March 2022 the Task Force on Nature-related Financial Disclosures (TNFD) was established to supplement the Task Force on Climate-related Financial Disclosures (TCFD), established in 2015. Where the TCFD enables business businesses to report against the financial impact of a range of climate scenarios, the TNFD will stipulate reporting against nature and biodiversity indicators. This is reflective of the increasing concern about the biodiversity loss currently being sustained at unprecedented levels globally.
The Global Reporting Initiative are currently updating their GRI 304: Biodiversity reporting standard to better reflect the urgent nature of the issue, and assist companies to identify, manage and improve their biodiversity impacts. Read more about the standard here.
Corporate Sustainability Reporting Directive
The scope of reporting has also been extended in relation to the size of companies who are required to report. The European Financial Reporting Advisory Group (EFRAG) Project Task Force have discussed the importance of including SMEs into reporting considerations, rather than focussing purely on large companies. The Corporate Sustainability Reporting Directive (EU) extends the scope of companies required to report to non-listed companies and it’s expected that by 2023 over 50, 000 EU businesses will have to report to the European Sustainability Reporting Standards.
Embedding sustainability into business strategy
At Zooss, our planet-passionate team believes that embedding sustainability into business strategy, operations and culture is essential for organisations aiming to drive positive change in their business and sustainability impact.
Find out more about Sustainable Business Planning and to start planning sustainably, contact us.
Better Planning. Better Planet.