CSR And Financial Accountability

📣 Great new report comparing 7 leading nature-related assessment and disclosure approaches! A joint collaboration between UNEP-WCMC and United Nations Environment Programme Finance Initiative (UNEP FI), this work explores: 1. CDP 2. EFRAG's Sustainability Reporting Standards (ESRS) 3. Global Reporting Initiative (GRI) Standards 4. International Sustainability Standards Board (ISSB) 5. Capitals Coalition's Natural Capital Protocol 6. Science-Based Targets Network (SBTN) target-setting guidance 7. Taskforce on Nature-related Financial Disclosures (TNFD) The report also dives into key trends in assessment methodologies and disclosure requirements, highlighting several areas of increasing alignment across the approaches. 📰 Have a read here! https://lnkd.in/eRz8ZpwP #nature #tnfd #biodiversity #issb #esrs #csrd #gri #naturefinance #sustainabilitydisclosures #sustainabilityreporting #esg #esgreporting #sustainablefinance #climate

In the last 24 months we identified 300+ new legislations related to climate change and over 10% of them have elements assessing green claims. But what are the steps for a business to comply with the upcoming legislation in the EU? To comply with the EU's greenwashing regulations and avoid misleading consumers, companies should take the following steps: 1. Review and audit all marketing materials and environmental claims: Businesses should conduct a thorough review of their marketing materials and environmental claims to ensure they align with the regulations. This may involve consulting with legal and sustainability experts to identify potential areas of concern. 2. Substantiate environmental claims: Companies must provide evidence to support their environmental claims, using credible and verifiable sources. This may include scientific studies, third-party certifications, or government data. Companies should be prepared to disclose this information if required by the regulations. 3. Rigorous carbon accounting:  To prove one’s environmental impact, you will have to back it up with data. Companies must diverge from industry averages when calculating the footprint of a product or service. It is important to leverage primary activity data with already existing proof, for example, your scope 1 and 2 can be easily tracked through energy invoices, bills and such. Then, the golden share still is represented from scope 3 emissions, but it is important for companies to start backing up their claims with proof and data. 4. Implement standardised environmental labels: The EU Commission promotes using standardised environmental labels, such as the EU Ecolabel, to provide consumers with reliable information about a product's environmental performance. Companies should consider adopting these labels where applicable to demonstrate compliance with the regulations. 5. Train employees on greenwashing and regulations: Companies should provide training to their employees on greenwashing to ensure that all relevant personnel understand the implications of these regulations and can identify potential compliance issues. 6. Continuously monitor and update marketing materials: Businesses should regularly review and update their marketing materials and environmental claims to ensure ongoing compliance with regulations. This may involve keeping abreast of new developments in sustainability research, as well as changes to the regulatory environment. To understand further how the EU greenwashing regulations will impact your business, have a read here: https://lnkd.in/egrfuk6h To understand green-related terms, have a read here: https://lnkd.in/eznWaTZ5 #greenwashing #sustainability #co2 #eu #co2 #esg #compliance

Financial Value of Climate Risks and Opportunities 🌍 Companies are under increasing pressure to reflect climate risks and opportunities in financial decision making. This is essential for embedding sustainability into strategy and unlocking measurable business value. ERM highlights that financial valuation of environmental and social factors enables companies to align investment decisions with long term performance. Value is created through energy efficiency, circular models, responsible sourcing, and workforce inclusion. These actions contribute to resilience, innovation, and cost efficiency. Sustainable products are experiencing significantly higher growth rates than conventional alternatives. Efficiency measures can reduce operating costs by up to 30 percent, while green finance instruments can lower the cost of capital. These gains can be captured directly in financial models and forecasts. At the same time, climate related risks are increasing in scale and frequency. Physical risks already account for over 270 billion dollars in annual damages. Transition risks may result in stranded assets worth hundreds of billions. The broader economic cost of unmitigated climate change could reduce global GDP by up to 18 percent by mid century. ERM presents two complementary approaches. Value creation focuses on capturing upside through efficiency, innovation, and market expansion. Risk mitigation addresses downside exposure by incorporating climate risks into business planning and decision processes. Both require integration of ESG into financial structures. This means applying standard financial tools such as internal rate of return and discounted cash flow to evaluate climate related actions. It also involves including environmental risks in sensitivity testing, pricing models, and capital planning frameworks. Translating these impacts into financial terms enables clearer comparison and stronger governance. Capital markets are moving toward companies that manage climate exposure effectively. Lower financing costs, stronger investor confidence, and increased access to sustainability linked capital are all benefits of a robust ESG integration strategy. Quantifying the financial value of climate related risks and opportunities enables companies to move from qualitative ambition to strategic execution. Those that lead in this area are better prepared to compete, attract capital, and deliver long term results. Source: ERM #sustainability #sustainable #esg #business

Harvard Law School Forum on Corporate Governance just published the top 10 corporate sustainability priorities for the back half of 2025 (via The Conference Board). A few things stood out to me: 1/ ESG must be embedded. I’ve said this before (and I may never stop saying it): ESG can’t be siloed off. To be successful, it needs to live inside core business functions. At Atlassian, for example, our Sustainability and Procurement teams partner closely on supplier engagement goals—because that kind of alignment drives real outcomes at scale. 2/ Supply chain transparency is rising. With new due diligence laws and increasing reputational risk, we’re seeing more customer questions about ESG commitments during deal flow. If your sustainability strategy doesn’t include your customers, you’re missing a critical piece. 3/ Climate strategy now influences financial decisions. In FY26, we’ll be preparing for Australia’s ASRS regulation—which goes beyond disclosure, asking companies to demonstrate how climate-related financial risks and opportunities are integrated into business decision-making. (Think: beyond TCFD.) 4/ The regulatory demand is real. We’ve tackled California. Next up: ASRS which will be followed by CSRD and CSDDD. Of course we also know some of the guidelines here will change and new regulations will emerge. The fragmentation makes compliance a moving target—and keeping up requires serious agility and focus. 👉 The takeaway: Sustainability priorities are evolving quickly. The companies making real progress are the ones embedding it across their operations, supply chains, reporting, and decision-making. https://lnkd.in/gGJCy-kT

Today, I am pleased to share a new article I have co-authored with Professor Jürgen Ernstberger and Professor Gunther Friedl, both from Technical University of Munich, titled "How Carbon Accounting Supports Corporate Decarbonization." Our work, now published in Foundations and Trends in Accounting's special issue on Perspectives on Carbon Accounting and Reporting, explores how transactional carbon accounting can power more effective corporate decarbonization. As businesses face mounting pressure to reduce their carbon footprint, we propose leveraging traditional financial management systems as a robust foundation, not only to track emissions across Scopes 1, 2, and 3, but to allocate them precisely to products and services via product carbon footprints (PCFs). This level of granularity is critical to support decision-useful insights and transparent reporting across value chains. By integrating PCFs into ERP systems like SAP S/4HANA, companies can assess and manage emissions at the transaction and product level, linking environmental data with financial metrics. This enables the path to a Green Ledger, where carbon is treated with the same rigor as money in corporate decision-making. At SAP, this approach reflects our commitment to embed PCFs into core enterprise systems and elevate them as a strategic lever for both compliance and transformation. This method not only enhances internal steering and external accountability, but it also aligns with emerging regulatory frameworks such as the EU CSRD and SEC climate-related disclosures. Many thanks to my esteemed co-authors for their collaboration. I invite you to explore our findings in depth via the link below: https://lnkd.in/eKWHjgV9 Sophia Leonora Mendelsohn Dr. Christopher Sessar   TUM School of Management #CarbonAccounting #ProductCarbonFootprint #CorporateDecarbonization #Sustainability

Most leaders have no idea if their social media investment is driving real business results. Social dashboards highlight surface-level KPIs: - Post engagement - Follower growth Here's what I actually want to know as a CEO: → How is social contributing to pipeline? → Where are the conversations happening? → Which campaigns deserve more investment? Traditional dashboards tell you what happened. At Hootsuite, we're focused on what matters, right now. Our new Social Performance Score (SPS) helps you measure the effectiveness of social. No more guessing about ROI. No more disconnected metrics. Instead, you get clear insights on: - Brand health through unique social monitoring - Relationship strength based on customer interactions - Actionable insights for growth In 2025, measuring likes isn't enough. Leading enterprises need to know exactly how social drives business and where to double down on investment. Your social media team already knows this… now you have the tools to prove it.

Climate Change estimates a 12% GDP Hit: Why the Real Cost of Carbon Is 6x Higher Than previous research. New research by Adrien Bilal and Diego Känzig shows that the macroeconomic damage of climate change is six times larger than previously estimated. Global temperature rises—not local ones—are an economic threat, with a 1°C increase slashing global GDP by 12%. Their model sets the Social Cost of Carbon at $1,367/ton— above current policy benchmarks. Abstract: We estimate the macroeconomic damage function of climate change by combining a structural macroeconomic model with a new panel dataset for 174 countries over 1960–2019. Our approach overcomes the attenuation bias from local temperature shocks and separates the effects of persistent global warming from transitory local weather shocks. We find that a 1°C increase in global temperature leads to a 12% decline in world GDP. Damages are heterogeneous, with poorer and hotter countries suffering the most. These effects are driven by persistent productivity losses and are amplified by capital accumulation. Our estimated damage function implies a Social Cost of Carbon (SCC) of $1,385 per ton of carbon dioxide—more than six times the US government’s current estimate. Our results highlight the importance of accounting for macroeconomic persistence and heterogeneity when evaluating climate damages.” And link to paper in comments and below.

As a CSR Head, before the Financial Year ends 2025, you must ensure that all CSR compliance, reporting, budgeting, and regulatory requirements are met. Sharing the checklist for reference. ·       100% Fund Utilization ·       For on-going projects transfer unspent CSR funds to a CSR Unspent Account within 30 days after FY-end. Utilize them within 3 years. ·       Non-on-going projects transfer unspent CSR funds to government funds (PM CARES, Clean Ganga Fund, etc.) within 6 months of FY-end. ·       Forecast Next Year’s CSR Budget – Estimate CSR obligations for FY 2025-26 based on projected net profits. ·       Board Approval of CSR Expenditure & ensure CSR spending and project modifications are reviewed and approved by the Board of Directors. ·       Submit CSR-2 with MCA (Ministry of Corporate Affairs) along with AOC-4 before 31st March 2025. ·       Board Report Disclosures – Include CSR details (projects, spending, impact, unspent funds, and reasons for shortfall) in the Board’s Annual Report. ·       Update company website with CSR Policy, CSR Project Details, Fund Utilization Reports, and Impact Assessments. ·       Ensure CSR expenditures comply with the 5% administrative cap and align with regulatory requirements. ·       Maintain Documents like CSR Agreements, NGO Docs, and Meeting Minutes & Board Approvals. ·       Verify eligibility for CSR-related tax deductions under the Income Tax Act. ·       Ensure all CSR-implementing partners are MCA-registered (CSR-1) ·       Confirm CSR compliance is reviewed in the Company’s Annual Audit. ·       Address any past non-compliance and take corrective measures to avoid penalties: ·       Conduct a CSR review meeting before the new financial year to evaluate performance and set the action plan for next year. ·       Share CSR impact reports with internal & external stakeholders (Board, investors, government bodies, employees). ·       Encourage employees to participate in CSR programs and plan engagement strategies for the next year. Meeting CSR compliance before 31st March 2025 is crucial to avoid penalties, maintain good corporate governance, and maximize social impact. Please add if I missed something. CSR #CSR CSR Projects | India #CS #CFO #CA #leaders CSR Nest Association #MCA #csrhead DELLOITTE PwC India EY

I don’t actually work in finance. I work in trust. Without it, capital markets collapse. Clients walk away. Careers end in minutes. I've watched brilliant finance professionals destroy their careers in minutes.   Not because they lacked technical skills, but because they crossed ethical lines they didn't fully understand.   The CFA Institute Code of Ethics stopped me cold when I first read Standard III.A:   "Members must act for the benefit of their clients and place their clients' interests before their employer's or their own interests."   Before your employer. Before yourself. Always.   In an industry built on conflicts of interest, this isn't just radical. It's revolutionary.   The standards create crystal-clear boundaries: → Market manipulation? Prohibited. → Client suitability? Mandatory assessment. → Conflicts of interest? Full disclosure required. → Material nonpublic information? Can't touch it.   But what really struck me was Standard V.B.5: "Distinguish between fact and opinion."   In a world drowning in financial noise, this simple requirement changes everything.   200,000+ CFA charterholders worldwide have sworn to uphold these standards. Not suggestions. Requirements.   When everyone else chases commissions, you're bound to put clients first.   When others blur the lines, you maintain clear boundaries.   When the industry rewards complexity, you're required to communicate clearly.   Finance without ethics is just sophisticated gambling with other people's money.   But finance with a moral compass? That's how you build trust that compounds over decades.   The Code doesn't make you rich overnight. It makes you trustworthy for life.   And in finance, trust is the only currency that never depreciates.   Every time you're tempted to cut corners, remember: Your reputation takes decades to build and seconds to destroy.   The real edge in finance isn't finding the next alpha. It's earning trust and keeping it. Now, since we are on LinkedIn, I have a question for you: Are today’s finfluencers held to the same ethical standards as CFA charterholders? Should they be?   PS. If you made it this far, ♻️ share this with your network and 🔔 follow my profile!

Building ESG: Small Business, Big Impact: How Carbon Accounting Can Boost Your Brand & Fight Climate Change ________________________________________ In today's world, consumers are increasingly interested in supporting businesses that prioritize sustainability. Demonstrating your commitment to environmental responsibility cannot only help you attract and retain customers, but also play a part in the fight against climate change. - What is Carbon Accounting? Carbon accounting, also known as greenhouse gas (GHG) accounting, is the process of measuring and tracking your organization's greenhouse gas emissions. This includes both direct emissions from your own operations (e.g., energy use, fuel consumption), and indirect emissions from your supply chain and the use of your products (e.g., purchased materials, transportation). - Why is Carbon Accounting Important for Small Businesses? * Customer Demand: By implementing carbon accounting, you can demonstrate your commitment to sustainability and gain a competitive edge. * Regulatory Compliance: As environmental regulations become more stringent, carbon accounting can help you stay ahead of the curve and ensure compliance with future regulations. * Cost Savings: Reducing your carbon footprint can also lead to cost savings. By identifying areas where you can improve energy efficiency or reduce waste, you can lower your operating costs. * Brand Reputation: Taking a proactive approach to sustainability can enhance your brand reputation and help you attract and retain top talent. - Getting Started with Carbon Accounting There are a number of resources available to help small businesses get started with carbon accounting. Here are a few steps you can take: 1. Educate Yourself: Familiarize yourself with the basics of carbon accounting and greenhouse gas emissions. 2. Inventory Your Emissions: Start by identifying and quantifying your organization's direct and indirect emissions. 3. Set Reduction Goals: Once you understand your baseline emissions, establish clear goals for reducing your carbon footprint. 4. Develop a Plan: Create a plan for how you will achieve your reduction goals. This may involve investing in energy efficiency measures, switching to renewable energy sources, or reducing waste. 5. Track Your Progress: Regularly monitor your emissions and track your progress towards your goals. What steps are you taking to reduce your small business's environmental impact? Share your thoughts and experiences in the comments below! Please click on the link below and feel free to share (Disclaimer: Views are personal, should not be related to organisations view) #buildingEsg #circulareconomy #sustainablefinance #esgreporting #esgstrategy #esgrisk #climaterisk #climatechangeaction #climaterisks #india #emissions #esgratings #esg #cop28 #greenertogether #SDGs #sustainability #business #csr