Publishing climate budget data for accountability

🚀 𝐈𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐢𝐧𝐠 𝐆𝐑𝐈 𝟏𝟎𝟐: 𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐂𝐡𝐚𝐧𝐠𝐞 𝟐𝟎𝟐𝟓 – 𝐓𝐡𝐞 𝐍𝐞𝐰 𝐆𝐨𝐥𝐝 𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝 𝐟𝐨𝐫 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲  The Global Reporting Initiative (GRI) has raised the bar with GRI 102: Climate Change 2025, effective January 2027. This groundbreaking standard equips organizations to transparently disclose their climate impacts, risks, and transition strategies—aligning with the Paris Agreement’s 1.5°C goal. Here’s what you need to know:  Why GRI 102 Matters  Climate change is the defining challenge of our era. With GHG emissions accelerating global warming, stakeholders demand rigorous, comparable data. GRI 102 responds by:   - Integrating latest science: Requires alignment with IPCC scenarios and sectoral pathways.   - Emphasizing a just transition: Mandates disclosures on workforce impacts, Indigenous rights, and community engagement.   - Closing loopholes: Explicitly excludes carbon credits from GHG reduction targets until at least 90% of emissions are cut.  Key Components 1. Transition & Adaptation Plans (Disclosures 102-1, 102-2)     - Detailed requirements for mitigation/adaptation strategies, including governance, expenditures, and stakeholder engagement.     - Must address biodiversity impacts and just transition principles.  2. GHG Emissions & Targets (Disclosures 102-4 to 102-7)     - Scope 1-3 reporting with strict quality criteria (e.g., market-based Scope 2 must use hourly-matched renewable energy contracts).     - Science-based targets must cover short-, medium-, and long-term horizons.  3. Carbon Credits & Removals (Disclosures 102-9, 102-10)     - No greenwashing: Credits cannot count toward reduction targets—only for "beyond value chain mitigation."     - Permanence monitoring: Projects must demonstrate how they address reversal risks (e.g., reforestation fires).  4. Just Transition Metrics (Disclosure 102-3)     - Track workforce shifts: layoffs, redeployments, upskilling (broken down by gender/employee type).     - Require FPIC (Free, Prior, Informed Consent) for Indigenous communities affected by climate projects.  Actionable Insights  - For Companies: Start gap assessments now—especially on Scope 3 data collection and transition plan governance.   - For Investors: Use GRI 102 to benchmark climate ambition and avoid "net-zero" claims reliant on offsets.   - For Policymakers: Align regulations with GRI’s robust criteria to combat greenwashing.  How is your organization preparing for GRI 102? Share challenges or best practices below!  #Sustainability #ClimateAction #GRI #ESG #NetZero #ClimateReporting #JustTransition #CarbonAccounting  

Climate-related Financial Disclosures Maturity Map 🌎 Climate-related disclosure is becoming a core expectation in corporate reporting. IFRS S2 introduces a clear structure for reporting climate-related risks, opportunities, and financial impacts, setting a new benchmark for transparency and accountability. The Maturity Map offers a structured view of the required disclosures across governance, strategy, risk management, and metrics. It supports organizations in identifying current gaps and planning the necessary improvements to align with regulatory expectations. In governance, disclosures must define the roles and responsibilities of both the board and management. This includes oversight of climate-related targets, integration into decision-making, and alignment with internal control frameworks and remuneration structures. Strategy disclosures should address how climate risks and opportunities affect business models, financial planning, and strategic direction. A credible transition plan, informed scenario analysis, and clarity on time horizons are essential elements. Risk management requires a clear explanation of how climate risks are identified, assessed, and prioritized. This process must be embedded within the broader enterprise risk framework and supported by appropriate data sources and criteria. Metrics and targets must include comprehensive data on greenhouse gas emissions across scopes, methodologies used, and progress toward defined goals. Disclosures should also reference internal carbon pricing, capital allocation, and external validation of targets. The Maturity Map is designed to guide finance and sustainability teams through the organizational shifts required to deliver complete and decision-useful reporting in alignment with IFRS S2. This tool complements the IFRS S2 standard and supports alignment with cross-industry and sector-specific metrics. Effective use of the Maturity Map can accelerate preparedness and improve the quality of climate-related financial disclosures. Source: Accounting for Sustainability (A4S) #sustainability #sustainable #esg #business #reporting

After months of anticipation from the corporations mandated to disclose through California’s Climate Corporate Data Accountability Act (SB 253) and Climate-Related Financial Risk Act (SB 261), as well as the investors and consumers of this information, we have to get comfortable operating strategically in a dynamic landscape. In this ESG Today article I summarize the current status of the laws, following CARB's May public workshop. The takeaway is clear: deadlines are firm, reporting requirements are coming, and companies must prepare now. 🗓️The Clock is Ticking: Despite ongoing development of prescriptive reporting rules expected by year-end, core reporting requirements begin in 2026 for FY2025 data. Companies should already be deep in the stakeholder collaboration, data collection, and analysis required to meet reporting requirements. ✅"Good Faith Effort" Requires Concrete Action: While CARB is not enforcing compliance penalties for SB 253 in 2026, this allowance is only for companies that demonstrate good faith efforts to meet reporting requirements.  This means scope 1 & 2 emissions inventories must obtain limited assurance. 📈Beyond Compliance, It's Strategic Imperative: This isn't just about ticking boxes.  Market demand for climate disclosure is high, with investors increasingly incorporating climate considerations into their risk assessments and capital allocation decisions. Similar business advantages exist for companies to de-risk and decarbonize supply chains.  So what should companies do over the next 6 months ahead of reporting deadlines? Make "No-Regret" Decisions Today: The smartest move is to focus on foundational work that aligns with current requirements and global best practices. This includes: 📊Building audit-ready, GHG Protocol-aligned emissions inventories  🔐Preparing for assurance from day one with transparent documentation  💻Investing in robust data systems that can adapt ⚖️Incorporate climate into core governance, risk and resilience infrastructure The market is already demanding this level of transparency. California isn't backing down, and organizations that lead with proactive preparation will be the ones to thrive in this dynamic landscape. What proactive steps has your organization taken to navigate these non-negotiable deadlines? Let me know in the comments! 👇 https://lnkd.in/ekGhT_kq Workiva #climatedisclosure #climaterisk #GHGemissions