NEWS & INSIGHTS

Is Climate Data the Final Financial Frontier?

The integration of climate data into financial decision-making has become an essential part of the financial DNA of companies.  

Chief Financial Officers (CFOs) are now weighing the impact of climate change on financial outcomes, making climate performance data a staple in financial reporting.  

This blog explores how climate-relevant data is reshaping finance by marking a critical shift towards sustainability. 

Reinventing Financial Reporting in Climate Information

Financial reporting is undergoing a radical transformation.  

Climate-relevant data is moving from optional to standard in financial reports, aligning with global movements toward transparency, driven by standards set by the International Sustainability Standards Board (ISSB), the Sustainability Accounting Standards Board (SASB), and the Corporate Sustainability Reporting Directive (CSRD). 

The message is clear: ignoring the financial impacts of climate change is no longer an option. 

Climate Data: Elevating Procurement Decisions 

The creation of sustainability procurement roles within organisations has increased. In fact, 51% of global businesses have existing sustainable procurement practices in place. This marks a critical acknowledgment: businesses are recognising that every purchasing decision can contribute to achieving net-zero emissions.  

Companies are now prioritising the gathering, monitoring, and reporting of climate-relevant data, not just within their own operations but across their supply chains. This focus extends to demanding that suppliers and business partners also manage and disclose their climate information, driven by the growing reporting requirements to account for Scope 3 emissions.  

Climate Data: Transforming Supply Chains Through Accountability 

The requirement for climate  management is driving a significant transformation across supply chains.  

Global regulations and the push for broader climate disclosure have made it imperative for even non-public entities supplying major corporations to report their greenhouse gas emissions, climate targets, and reduction efforts. 

By emphasising the assessment of the climate performance of suppliers and business partners, organisations are fostering a supply chain that is transparent, accountable, and, ultimately, sustainable. This shift ensures that efforts to cut emissions and reach climate targets are unified actions towards a larger goal, rather than isolated efforts. 

Conclusion 

The role of climate-relevant data in financial decision-making signifies a profound change in how companies approach their financial and environmental responsibilities.  

As firms take decisive steps towards the net-zero transition, the importance of integrating climate information into all facets of business operations becomes undeniable. 

This evolution is not just about the final financial frontier but underscores a vital move towards a sustainable future, where financial strategies and environmental stewardship are inseparably linked. 

 


The world is changing. Keep yourself updated.

Our breakdown of key moments and highlights in the ESG, climate compliance and sustainability reporting space.

  • This field is for validation purposes and should be left unchanged.

You can’t manage
what you can’t measure.

30% reduction in energy bills while eliminating your business' climate impact?
Both are possible simultaneously with ClearVUE.Business.