How to Benchmark Climate-Aligned Activities

Criteria for Climate & Net Zero Reporting 🌎 This framework, developed by KPMG, provides a clear and practical benchmark to evaluate the quality of corporate climate and net zero disclosures. It is based on international best practices and draws heavily from the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The criteria are grouped into four focus areas: Governance, Risk Identification, Impacts, and Net Zero Transition. Each area outlines specific reporting elements that reflect the maturity and robustness of a company’s approach to climate-related issues. Under Governance, disclosures should show that board-level responsibility has been assigned to oversee climate matters. In addition, climate risks should be referenced in the Chair or CEO’s message, and the company should clearly acknowledge climate change as a material financial risk. In the Risk Identification category, strong reporting includes a dedicated climate risk section in the annual report or a standalone TCFD-aligned report. It should also cover both physical risks (e.g., extreme weather) and transitional risks (e.g., policy shifts or market changes). Impacts criteria emphasize the importance of scenario analysis to understand how different climate outcomes could affect the business. Companies are expected to report using multiple warming scenarios and clear timeframes, relying on reputable sources such as the IPCC or IEA. The Net Zero Transition section highlights the need for science-based or net zero targets. A credible strategy for decarbonization should be disclosed, including the actions the company will take and the timelines involved. Transparent progress tracking is also essential. Disclosures should communicate whether the company is on track to meet its targets, identifying any challenges or adjustments made along the way. Finally, the use of an internal carbon price is seen as a strong indicator of preparedness for future regulation. It demonstrates that climate-related financial risks are being factored into planning and investment decisions. Source: KPMG #sustainability #sustainable #business #esg #reporting

Everyone’s talking about impact. But very few know how to measure it. As someone who works closely with businesses—from early-stage startups to growing SMEs—I see this struggle all the time: ❌ “We want to be more sustainable but don’t know where to start.” ❌ “We don’t have the time or budget to hire a consultant.” ❌ “We’re doing things right... we think. But how do we prove it?” The good news? You don’t need a full sustainability team to get started. Here are 3 powerful FREE tools I recommend all the time to clients and founders I mentor: 🔹 B Impact Assessment (BIA) The most widely used tool to evaluate your company’s social and environmental performance. It covers everything from how you treat your employees to how you engage with your community and manage your environmental footprint. It also sets you on the path to becoming a B Corp—but even if that’s not your goal, it gives you a clear benchmark to improve. 👉 Learn More: https://lnkd.in/ddwJ6hXH 🔹 SDG Action Manager Developed by B Lab and the UN Global Compact, this tool connects your operations to the Sustainable Development Goals (SDGs). It helps you assess your impact across topics like gender equality, decent work, and climate action, while giving you guidance on where to go next. A great tool if you want to align your strategy with global goals. 👉 Learn More: https://lnkd.in/d8Nvqrw4 🔹 SME Climate Hub Designed specifically for small businesses, this tool helps you measure and reduce your carbon emissions. It guides you step by step to set a credible net-zero commitment and access action plans and reporting templates. Backed by the UN Race to Zero initiative—it’s perfect if you want to show real climate leadership. 👉 Learn More: https://lnkd.in/dKivEaRi 🛠 These tools aren't just checklists. They help you turn good intentions into strategy, and strategy into impact. 💬 Have you used any of them? Curious to hear what’s worked for you—or what’s still unclear. #ImpactMeasurement #Sustainability #SDGs #SMEClimateHub #ClimateAction #BCorp #PurposeDrivenBusiness #MENAImpact

New EU Climate Law-Aligned Transition Pathways: A First Step Toward Granular, Decision-Useful Guidance The European Commission has released the first set of European Climate Law-aligned #transitionpathways. These pathways translate the Union’s legally binding climate objectives - a reduction in greenhouse gas emissions of 55% relative to 1990 levels by 2030 and climate neutrality by 2050 - into sector-specific, EU-regional decarbonisation trajectories. A key strength of this work is its granularity. The project covers 25 sectors, each presented in a dedicated Sector Fiche and spanning #AFOLU subsectors, residential and tertiary buildings, bioenergy and power, the major industrial branches (chemicals, metals, non-metallic minerals, food and beverages, paper, and other industries), and all major transport modes (air, road, rail, and water). A separate fiche covers “Other sectors,” providing a benchmark for organisations outside the 24 detailed categories. This level of disaggregation is critical. The pace and nature of decarbonisation vary markedly between subsectors. Until now, companies and financial institutions seeking to align transition plans and investment portfolios with the EU’s climate objectives have lacked EU-specific, sector-level reference points. These new pathways help fill that gap by offering policy-consistent and regionally relevant decarbonisation trajectories. Note that these pathways are non-binding: they do not create compliance obligations and do not replace sectoral legislation. They are designed as guidance tools, supporting companies in developing credible transition plans and promoting greater coherence and comparability in how decarbonisation strategies are evaluated. They remain works in progress, with methodological refinements expected as EU modelling evolves. Beyond their relevance for companies themselves, these pathways will also prove valuable for financial institutions implementing #portfolioalignment frameworks, including through initiatives, such as the Paris Aligned Investment Initiative (#PAII #PAOO) and the Net-Zero Asset Owner Alliance (#NZAOA) convened by United Nations Environment Programme Finance Initiative (UNEP FI), which require reliable sectoral benchmarks to assess companies’ alignment and to structure investment and effective #engagement. The EU pathways provide a regionally appropriate anchor for such analyses. This is a welcome step contributing to advancing the conversation from general #netzero commitments to the concrete sectoral transformations required to meet Europe’s climate goals. https://lnkd.in/ebFVMMiZ