COP 21 and the Annual Report

With some investors slowly divesting from fossil fuels and the recent COP21 summit reaching an agreement to limit global warming to 2℃, the attitude companies take to climate change will have to evolve, and in turn, so will their reporting.

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As a result of the summit in Paris, new policies may soon be introduced for business reporting which will look at how companies can greater communicate risks and engage with stakeholders, building on key work from companies such as Unilever and Coca-Cola, who are already making climate change reporting a priority.

In a recent briefing, KPMG warned that there will be both risks and opportunities as a result of the COP21 summit. Risks include tighter reporting and transparency, whilst opportunities for businesses include development, infrastructure investment and an increase in demand for carbon efficient suppliers. They also advised that this in turn could affect:

  • Strategy Identifying and reducing climate related risk in your supply chain
  • Compliance Ensuring that you understand and comply with potential legislation coming into effect
  • Reporting Detailing any processes implemented to ensure that your company can gather, analyse and report on carbon data efficiently
  • Finance Identify and access tax incentives for investment.

These are just a few selected subject matters that will affect a range of companies in the future. Not only is it important to ensure that these processes and factors are implemented effectively, but also that it’s communicated well. For more information on how to communicate your key messages effectively, why not get in touch and talk to a member of our team.