And what to do about it.

As governments around the world roll out mandatory climate reporting legislation to support the world’s transition to a net zero emissions economy, it’s clear that large entities will need to begin emissions accounting some time over the next 12 months, if they aren’t already doing so.

The impact of mandatory reporting on smaller businesses, though, has not been so clear.

A new move by Amazon to update its Supply Chain Standards next year to require its suppliers to share their emissions data and set reduction goals gives us some clue of how the requirements imposed on larger companies could trickle down on smaller entities – and when.

In short, it appears smaller entities are going to be impacted much sooner than anticipated.

Key takeaways

• The new sustainability disclosure standards, IFRS S1 and S2, draw upon and consolidate many of the leading ESG reporting frameworks in use today
• Designed to standardise ESG reporting principles for the benefit of the investment community in decision making process
• Governments are developing new legislation for listed entities aligned with standards
• Based on accounting principles, the new standards are expected to significantly change corporate reporting, and spur a large uptake of emissions accounting by organisations.

• New ESG practice bolsters consultancy’s client offering
• Appointment of Jack McLintock, Annabelle Dick and Anna Cvijetić expand IR Department’s investor and public relations expertise