Solutions
Sustainability reporting and disclosure
73% of global investors say it’s important that ESG-related metrics are independently assured, but only 20% of Canadian organizations have some type of assurance over their ESG information.
Global sustainability reporting standards and regulatory requirements are rapidly increasing in scale and scope, compelling companies to report on sustainability information in their annual reporting.
As a result, the need for accurate, comparable, and robust reporting is more critical than ever and companies are increasingly seeking independent assurance over their sustainability disclosures.
Our subject-matter specialists can help you navigate ever-changing regulatory requirements, and our sustainability assurance services can give you and your stakeholders confidence that you are not only compliant but driving value from your corporate reporting. Here are some of the challenges our team can support your organization with:
The ever-changing regulatory landscape
Companies can find it challenging to stay up to date with new releases of reporting requirements from organizations like the International Sustainability Standards Board (ISSB), US Securities and Exchange Commission (SEC), European Sustainability Reporting Standards (ESRS), and Canadian Securities Administrators (CSA).
Growing stakeholder expectations
Companies have to meet increasing stakeholder expectations on disclosures of sustainability performance measures (social metrics, biodiversity and natural resource constraints, financed emissions, etc.)
Risk of greenwashing
There’s rising regulatory interest in companies’ environmental claims and product/portfolio, giving rise to increased rigor in labelling and reporting to avoid any accusation of greenwashing.
Setting realistic commitments & targets
With a heightened market focus on climate and net-zero commitments, companies need to ensure their strategies for reaching them include credible transition plans.
Three things every company should do today:
1
Assess stakeholder needs and identify a target state
- Determine key stakeholders (investors, lenders, customers, suppliers, regulators etc.)
- Identify all requirements that could apply if operating in multiple jurisdictions (e.g., foreign subsidiaries)
- Understand how sustainability considerations will affect decision-making
- Develop an ideal future state that includes the scope of its sustainability reporting (compliance-only, best-in-class, or somewhere in between)
2
Develop a gap assessment and implementation plan, including:
- Key activities (identify sources of data and develop models for measurement, processes, governance, systems, internal controls, etc.)
- Ensuring stakeholder representation from all affected areas across the organization
- Timelines that meet both required go-live reporting and the testing and validation required for it
3
Clarify short-term needs and areas likely to evolve
- to identify where to start today,how often to monitor progress, and to be prepared to pivot as things invariably unfold
Sustainability Reporting Services
We can help you navigate the continuously evolving regulatory landscape concerning sustainability reporting requirements, keep you informed of new regulations and share emerging best practices to future-proof your business, including:
Sustainability Reporting Diagnostic
Helping clients understand where they are at in their ESG reporting journey relative to new ESG standards and regulations.
Sustainability Assurance & Assurance Readiness
Providing assurance (typically limited) and assurance readiness over sustainability related metrics and incident rates.
Sustainability Readiness Lab
Supporting an organization as they navigate the changing ESG environment to identify risks and opportunities to generate value for their business and align on next steps to address future requirements.
Sustainability Advisory
Assisting clients with the preparation of and advice on how to extract value from their ESG reporting.
Regulatory Reporting Standards Updates
Sustainability is at the core of many conversations as regulatory bodies like ISSB and SEC are releasing new standards that are changing how organizations measure and report their sustainability initiatives and impact. Although those new standards don’t apply in Canada yet, they are shaping the CSA thinking, who may issue a requirement for Canadian companies to report based on the CSSB standards in the near future. We help you keep updated on the new standards as they are released, so you can understand how they may impact your organizations with short videos and key takeaways.
Visit our Sustainability reporting regulatory updates page to learn more
Additionally, visit our Centre for Financial Reporting for current, complete, and reliable financial reporting information.
Audit Committee
Audit Committee members have specific needs to fulfill their mandate when it comes to financial reporting. As sustainability is gaining traction with regulatory bodies, the intersection between sustainability and financial reporting is growing, and sustainability reporting is being subjected to the same level of rigor as financial reporting.
To help you navigate those changes, our Sustainability Co-leads Nura Taef and Chris Wood have developed a short video and a report that give you the top 5 questions you should be asking to ensure your organization is prepared for the changes ahead.
For more audit committee relevant content, visit Audit Committee Brief | Deloitte Canada
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