Climate change affects economic stability and growth in many countries. The World Bank, together with development partners, has collected data that highlights potential risks and impacts climate change at the country level. Many governments are still hesitant about whether and how to act without increasing fiscal risks. They need reliable data and evidence to inform decisions on laws, regulations, public service provision, subsidies and guarantees, etc.<\/p>\n
Sustainability reports provide an overview of the impact of activities on the population and the environment. They contain qualitative and quantitative information on environmental, social, economic and governance issues. They indicate areas where an organization has a significant impact. Companies use them to identify and mitigate risks and identify opportunities that may affect their long-term performance. These reports can help reduce negative climate impact, increase cost savings, improve transparency and strengthen the image of companies.<\/p>\n
The rise of sustainability reporting in the private sector reflects the demand for better information among market participants, capital markets, consumers and regulators. The European Union now requires large companies and listed small and medium-sized enterprises (SMEs) to report on sustainability under the Corporate Sustainability Reporting Directive (CSRD). The International Sustainability Standards Board (ISSB) has developed a global minimum framework for the corporate sector. The International Public Sector Accounting Standards Board (IPSASB) is developing standards for climate-related disclosures, to be published in 2025.<\/p>\n
Governments are feeling the greatest impact of climate change and must therefore take the lead in combating it. As the largest economic actors, regulators and financiers are directly affected by the changes and the associated fiscal risks. They should determine how their country responds to climate change and ensure effective regulation and support for private sector initiatives that move towards sustainability. Governments should now catch up with the private sector and introduce sustainability reporting that will help:<\/p>\n
\u2013 Provide information to support decision-making and enable comparisons at regional and global levels.<\/p>\n
\u2013 Increase in income from economic growth following market changes or the development of new technologies.<\/p>\n
\u2013 Focus responses on the direct and indirect impacts of climate change (e.g. subsidies, healthcare costs, infrastructure rebuilding).<\/p>\n
\u2013 Reducing fiscal risks of future spending.<\/p>\n
Sustainability reporting can build public trust. Delivering solutions that are both sustainable and fiscally balanced requires strong partnerships with companies, citizens, investors and international lenders. The public sector can help build trust by reporting on sustainability. It shows citizens how their taxes are being used to address sustainability issues and encourages investors and lenders to offer governments better loans.<\/p>\n
Where should governments start?<\/strong><\/p>\n 1. START: As the Chinese philosopher Lao Tzu said, \u201ca journey of a thousand miles begins with a single step.\u201d The government\u2019s first step could be to start educating itself and starting a dialogue about sustainability reporting.<\/p>\n 2. LISTEN: Engage stakeholders about their role in sustainability and what it can do for them. Understand existing standards and compliance. Access skills and knowledge that inform decision-making and leverage private sector expertise.<\/p>\n 3. READ: There are many frameworks, standards and reports that can be useful.<\/p>\n 4. WRITE: Develop initial guidance that is then expanded and improved. Gather feedback from stakeholders for improvements and future design of formal sustainability reporting.<\/p>\n Governments and the private sector have a key and complementary role to play in the fight against climate change. Governments can be the driving force in identifying climate risks and opportunities, but it is important to act now. Working with the private sector will accelerate the process and support governments in creating and communicating policies that manage finances, protect services, and support the well-being of citizens, businesses, and the economy. (CO2AI)<\/p>","protected":false},"excerpt":{"rendered":" Climate change affects economic stability and growth in many countries. The World Bank, together with development partners, has collected data that highlights potential risks and impacts<\/p>","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[],"class_list":["post-31453","post","type-post","status-publish","format-standard","hentry","category-klimaticka-zmena"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/posts\/31453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/comments?post=31453"}],"version-history":[{"count":0,"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/posts\/31453\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/media?parent=31453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/categories?post=31453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/tags?post=31453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}