Cutting through the noise with meaningful climate reporting
Corporate sustainability may be stuck in muddy waters, but stakeholders still want to see effective management of climate-related risks and opportunities.
Guest blog written by Rachel Crossley, Director of Stakeholder Communications at Emperor
Corporate sustainability may be stuck in muddy waters, but stakeholders still want to see effective management of climate-related risks and opportunities.
It’s been a challenging year for climate reporting, with the US pulling back on climate policy and disclosures and the EU’s corporate sustainability regulations currently up in the air.
However, managing climate-related issues remains a focus for investors and companies alike. Indeed, a recent study by the Science Based Targets initiative (SBTi) found that 91% of companies report overall positive business impacts from setting science-based targets, particularly in relation to strategic cohesion, stakeholder confidence and financial performance, in addition to climate impact.
In the UK, the regulatory environment is evolving rapidly, driven by global commitments and domestic policy priorities. Climate-related Financial Disclosure (CFD) reporting has been a requirement for several years, with an objective of ensuring companies provide insights on how they are managing their climate-related risks and opportunities and effectively transition to net zero.
However, the quality of reporting remains variable, and many disclosures are lengthy, complicated, and compliance-led. A review by the Financial Reporting Council (FRC) outlined gaps, particularly in the quality of governance disclosures, risk management, scenario analysis, and strategic linkage.
Amid growing scrutiny, the risk of greenwashing, and the increasing use of AI to review disclosures, companies need to ensure their climate-related communications are clear, credible and transparent. And go beyond compliance to effectively engage their stakeholders.
Our top tips to achieve this:
- Set the context
Frame your disclosures within the broader picture of your climate-related issues. Explain why climate risks and opportunities matter to your business and stakeholders. Connect global issues to local and sector-specific challenges. void jargon; instead, use relatable and accessible language.
- Establish clear targets
Ambiguity erodes trust. Companies should publish specific, measurable targets (e.g. Science-based Scope 1, 2 and 3 emissions reductions) and report progress consistently and transparently. Include milestones along the way and clearly address the challenges you face. Where possible, quantify financial implications of climate risks and opportunities: investors value clarity on both exposure and upside potential.
- Adopt external frameworks and standards
Aligning with recognised frameworks such as TCFD, ISSB, and CSRD that provide structured guidance on governance, strategy, risk management, and metrics & targets, enhances transparency and comparability. And using standards such as Carbon Disclosure Project and SBTi to support your targets and environmental disclosures adds credibility. There are a lot of frameworks out there so it’s important to ensure the frameworks you choose match your company’s size and ambitions.
- Demonstrate accountability
Investors and regulators expect clear governance oversight of climate-related issues. Disclosures should detail board-level responsibilities, management accountability, and outcomes from meetings throughout the year. Visual aids, such as organisational charts, can clarify roles and link governance to climate strategy and risk management processes.
- Engage with creative
Complex data can overwhelm readers. Use infographics, charts, and scenario maps to make disclosures accessible and highlight key metrics, progress against targets, and outcomes. 44% of FTSE 350 companies include an infographic of their transition plan, according to our latest research. Add concise explanations to provide clarity, reinforce trust, and aid comprehension for your stakeholders.
From compliance to confidence
Climate-related communication is more than a regulatory obligation; it is a strategic tool for building stakeholder trust and demonstrating long-term conviction.
By setting context, defining clear targets, leveraging global frameworks, strengthening governance, and using compelling visuals, companies can cut through the noise and present their climate data with integrity.
In doing so, they not only meet compliance requirements but also position themselves as credible leaders in the transition to a sustainable economy.
Guest blog written by Rachel Crossley, Director of Stakeholder Communications at Emperor.
If you’d like to learn more about how to evolve your climate reporting, please get in touch at [email protected].
