CFO BRIEFING - Responding to sustainability disclosure requirements - Managing compliance risk as a minimum, while also

The importance of sustainability performance and disclosure to business is set to only increase as sustainability-related risks and opportunities relating to environmental and social performance have become inextricably linked to corporate strategy and operations. [...] Following the five steps below will position companies well in their sustainability performance and disclosure journey: Discover: achieve a comprehensive understanding of the company’s position with respect to the sustainability standards and frameworks relevant to the organization and the associated reporting requirements, assessment gaps and material issues. [...] Key components and functions CSRD Double materiality assessments, which require organizations to consider their sustainability risks and opportunities as well as the impacts they have on people and the planet, determine the information to be reported through the European Sustainability Reporting Standards. [...] This brings the financial and non-financial strategic implications of climate change mitigation and respect of planetary boundaries of the biosphere into the domain of the CFO and finance function. [...] The significant cost implications and opportunities of transitioning to more sustainable and net zero businesses place sustainability firmly on the CFO’s agenda in terms of understanding the financial risks and opportunities to their organization.