With the development of so many fast-moving and potentially overlapping requirements, the challenge of identifying and collating the data required, and applying the necessary materiality judgements on what to disclose, can be daunting.
Those acting now, with an informed strategy, will be well positioned to navigate upcoming changes as well as creating the agility to respond with ease over the years ahead. A clear plan that considers the bigger picture will allow you to implement and track the data you need to underpin your overall sustainability journey, and create value for your organisation.
Here, we explore what reporting developments are on the horizon for 2024 and 2025 and the transformative actions business can take to not only navigate compliance, but also secure immediate and long-lasting value.
Timeline for key UK and EU sustainability reporting regulations
1. Take a strategic approach to your reporting
The varied nature of new regulations means it is tempting to address them in isolation. However, identifying the interoperability of forthcoming regulations is critical to unlocking robust reporting alongside business value. You’ll be able to identify critical changes that address the regulations holistically. Instead of making multiple changes over the next few years, a more strategic approach will enable agility as well as cost and time efficiencies.
Reporting disclosure requirements are annual. The format you use in your first year of reporting forms the basis to replicate each year. Taking time to embed the right strategy that considers both the short and long-term requirements is critical. The insight and data gathered should then be reviewed to identify areas for improvement and drive continual change. Gaps can be closed and clear actions identified, unlocking long-term value.
2. Ensure your whole organisation is behind the reporting transformation
It pays off to invest the time early on in the sustainability reporting process, to engage the right people across the business, to establish clear ownership and accountability, and to upskill staff. Businesses that take a collaborative approach make the most progress.
A powerful illustration here is how the Corporate Sustainability Reporting Directive (CSRD) could require over 1,000 data points. Alongside this, there are a number of requirements where we don’t yet have finalised rules, but by getting your data in order now you’ll be able to welcome these with ease. For example, while the corporate components of the UK Sustainability Disclosure Requirements (SDR) are not yet finalised, organisations can start implementation work by applying what we already know about the International Sustainability Standards Board standards, as the UK Government has committed to incorporating these within the UK SDR framework.
Read the full article at PwC Hospitality & leisure
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