Embrace the Inevitable: The Proactive Approach to Sustainability
If you're a company, large or small, without a sustainability strategy and unsure about initiating one, please read on.
Numerous events on the horizon should prompt your company to immediately assess its climate-related vulnerabilities and its capacity to cultivate resilience within your business model. This includes overall operations and any potential material ramifications on your balance sheet.
“For now, in this competitive market, even a small statement is better than silence.”
The reason? Public companies across the United States and Canada are steadily progressing toward mandatory sustainability reporting. If you are relying on these companies for business, your risks become their risks and vice versa.
To identify a few imminent changes expected in the US, the #SEC is set to announce its final Climate-Related Disclosure requirements, impacting large and publicly listed US companies. Meanwhile, California took this proposal a step further and is expected to sign Senate #Bill253 by October 14th, mandating all sizable companies, both public and private, doing business in the state (about 5,300) to disclose their carbon footprints, including scope 3.
Canada's Bill B-15 also provides a hint of what is to come, with #OSFI's climate guidelines for about 350 federally regulated institutions taking effect for some in less than a year. And for even broader implications, the #CSA (Canadian Securities Administrators) has supported the International Sustainability Standards Board (ISSB) standards and public issuers who meet reporting criteria can expect an update shortly on how these standards will be adjusted and rolled out across the nation.
These represent just some of the significant changes unfolding that will affect businesses depending on one another to achieve their objectives and commitments.
The underlying message is clear: if a company, regardless of its size or public standing, doesn't address sustainability issues, key stakeholders may perceive this as a risk and end the relationship. Lacking a sustainability report can be perceived as a company being unaware of its challenges, not having a strategy to handle potential impacts, and not being equipped to safeguard vital business relationships and essential resources.
The good news is that as you embark on your ESG and Sustainability journey, you'll see that many view this growing responsibility as a competitive advantage. As a result, sophisticated firms have elevated sustainability to the board-level, identifying key areas, devising strategies, and assessing performance.
But for now, in this competitive market, even a small statement is better than silence. One can start this process by reviewing the International Sustainability Standards Board (ISSB) IFRS S1 and IFRS S2 standards, which are gaining global traction.
At 7 Centre, we specialize in ESG consulting, offering tailored solutions to navigate these shifts seamlessly. Partner with us to build your strategy, stay competitive, and ensure you stay ahead of the curve.
