Last week we held the webinar “Climate disclosures and your company. How to be ready”. The webinar was focused on the implementation of new mandatory climate reporting and disclosure standards.
Maryna Rymkina, Corporate Governance & ESG Services Lead at Deloitte Ukraine and Silke Goldberg, Global Head of ESG at Herbert Smith Freehills, member of the Chapter Zero UK Board outlined not only the main regulatory changes, but also the practical aspects of preparing for new standards.
Maryna highlighted a high demand for the companies to be transparent in full value chain – to define full range of activities. Companies have to disclose information not only about themselves, but also about all companies-participants of their value chain. Thus, in line with CSRD, appr 50 thousand EU businesses will be required to use ESRS, disclosing cross-cutting, environmental, social and governance aspects. Staring 2028 reasonable assurance will be mandatory for the companies which intend to disclose information. Value chain data and stakeholders’ engagement are important data for disclosure.
Silke Goldberg spoke about the directors’ duties and liabilities as well as ESG disclosures. They must have a good understanding of policies, practices and challenge their companies to work in accordance with the requirements.
One of the key issues in relation to the disclosure Silke mentioned timing, since it can take much more time than actually thought.
Additionally, Silke stated that if the disclosure is obligatory and the board does not disclose, then in addition to the risk of litigation and fines and possible bankruptcy, the board directors will have dependence on the local jurisdiction. If a company does not want to disclose because of consequences then the board directors have to be personally liable.
Watch the recording via link