The role of ESG (environmental, social, and governance) and sustainability in business has been constantly evolving over the past 40 years and the space continues to change to this day.

While sustainable development business practices have been discussed since the 1980s, the release of the Taskforce for Climate-Related Financial Disclosures (TCFD) recommendations in 2017 marked a shift in how climate and sustainability issues are viewed by businesses and governments, particularly in relation to financial risk and opportunity. Organisations are increasingly expected to understand and disclose, whether voluntarily or by law, how their operations impact and depend upon stakeholders, society, the economy, and the natural environment. These impacts and dependencies may give rise to risks or opportunities that are relevant to investors and other decision-makers.

In Australia, climate-related financial disclosures present a significant shift for corporate reporting obligations. Finance and sustainability teams are expected to engage with new concepts and processes to meet requirements. Some of the common challenges faced by organisations are understanding:

  • Where to start
  • How to interpret and apply sustainability reporting standards
  • How to drive the internal collaboration that is required.
  • What is required for compliance compared to for best practice disclosures

Supporting organisations through the transition

Grant Thornton’s ESG and sustainability services are designed to guide and support you through the process of meeting your sustainability reporting and assurance obligations, as well as building your internal knowledge and skills base to prepare you to meet requirements year after year.

We help our clients through the practical steps of sustainability reporting compliance. We walk clients through the technical complexities of compliance using our detailed knowledge of AASB S2 and the latest regulatory and market developments, in addition to our understanding of how financial and sustainability information intersect.

Our ESG and Sustainability Services:

  • Mandatory Sustainability Reporting including guidance on climate-related risks and opportunities, climate scenario analysis and GHG emissions.
  • Voluntary Sustainability Reporting including guidance on sustainability-related risks and opportunities, voluntary framework alignment assessment and greenwashing analysis.
  • Sustainability-related Strategy including reviewing your existing strategy and supporting your target-setting.
  • Decarbonisation Support including highlighting decarbonisation opportunities throughout the supply chain and offering guidance on SBTi-aligned target setting and transition planning.
  • Sustainability-related Education sessions to upskill your team.
  • Sustainable Finance including risk assessment, strategy planning and taxonomy support.
  • Sustainability-related Risk Management including assessing your risk controls and offering best practice recommendations.
  • Sustainability Assurance either on a voluntary and compliance basis.
  • ESG Due Diligence including assessing investments, supporting investment decision-making and identifying risks and opportunities.

Our ESG Services

Sustainability reporting

Following the introduction of mandatory sustainability reporting requirements in Australia, organisations will need to understand if they are required to report, the disclosure requirements, and if they have the skill set and available data to comply. We can guide organisations through the reporting process end-to-end, from climate-related risks and opportunities identification through to reporting support.

Sustainability advisory

With the ESG and sustainability landscape continuing to evolve, we are focused on helping your business to understand how to shape your sustainability strategy. When designing a sustainability strategy, it’s important to take into consideration your sustainability-related risks and opportunities, relevant standards and frameworks such as the SBTi, and your broader business needs.

Sustainability assurance

The sustainability reporting regulations which have come into force in Australia include assurance requirements which are being phased in over several years. Australia is also the first jurisdiction internationally to adopt the new assurance standard. Whether you are seeking voluntary assurance or meeting your compliance obligations, our sustainability assurance team combines technical expertise and industry insights to provide quality and efficiency in the assurance process.

ESG due diligence

As ESG and Sustainability-related considerations are becoming pivotal for Australian dealmakers, it is important for investors to feel confident in assessing transactions through an ESG lens. The due diligence process evaluates a company's material environmental, social, and governance topics during the pre-investment phase, flagging risks and identifying opportunities for added value.

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