Find out why nature matters to report preparers and what are the key actions to incorporate nature-related disclosures effectively.
As organisations face increasing pressure to disclose financial and non-financial information, accountants who prepare reports play a crucial role in ensuring that nature-related risks and opportunities are accurately communicated. With shifting regulatory landscapes and rising stakeholder expectations, report preparers must integrate nature considerations into financial and sustainability reporting
The role of report preparers in nature-related reporting
Report preparers communicate critical financial and sustainability information to stakeholders, ensuring compliance with regulations and providing meaningful insights into business performance.
While job titles vary between organisations, accountants working as report preparers may be responsible for:
- Financial reporting: providing information to investors about a company’s financial performance, position, and cash flows and the context around these; and/or
- Non-financial reporting: highlighting a company’s broader environmental and social issues to investors and other stakeholders, including information on how a company is governed and managed
Here is a high-level overview of how nature connects with the typical responsibilities of a report preparer.
- Stay up to date on reporting standards to ensure compliance: Knowledge of nature-related disclosure frameworks and standards to collaborate on preparation; ensure alignment with financial statements; and report in line with the organisation’s ambition set by the Board.
- Compile data and establish controls: Ensuring the accuracy and completeness of nature-related information.
- Prepare disclosures: Collaborate on preparation of nature-related disclosures, ensuring alignment with financial statements to support senior managers and ensuring good communication with stakeholders
- Internal collaboration and externally with auditors and assurance practitioners: Working with internal and external auditors to align financial and sustainability disclosures.
The increasing importance of nature in corporate reporting
The shift from voluntary to mandatory nature reporting reflects a broader effort to integrate sustainability into business operations. Governments and regulators are setting stricter requirements, and investors are demanding greater transparency. Organisations that fail to adapt risk reputational damage, regulatory penalties, and financial instability.
With frameworks like the IFRS Sustainability Disclosure Standards, CSRD, and GRI, nature-related reporting is now seen as a vital part of corporate governance. Effective reporting ensures that companies remain accountable and competitive in an evolving financial landscape.
Five key actions for report preparers to get started
1. Familiarise yourself with your organisation’s material nature-related issues
Understanding how nature-related factors affect your organisation is essential for meaningful reporting. Reviewing environmental and nature-related materiality assessments can help identify key dependencies, risks, and opportunities. If your organisation has not conducted an assessment, advocating for one can strengthen reporting processes.
- Gain a foundational understanding of nature-related concepts and frameworks.
- Engage with internal and external experts to interpret materiality assessment findings.
- Use tools like the Taskforce on Nature-related Financial Disclosures (TNFD) LEAP guidance to assess material nature-related issues.
- Identify industry-specific nature-related risks and benchmark against competitors.
2. Identify applicable nature-related reporting requirements and best practices
Governments and regulators are expanding reporting obligations to include nature-related disclosures. Report preparers must be aware of evolving standards to ensure compliance and alignment across reporting frameworks.
- Understand key sustainability disclosure standards such as IFRS Sustainability Disclosure Standards, CSRD, and GRI.
- Collaborate with sustainability teams to align financial statements with non-financial disclosures.
- Assess how nature-related risks affect financial statements to maintain consistency and transparency.
- Evaluate how international frameworks intersect and whether voluntary disclosure can add value to investor relations.
3. Assessing data requirements for nature-related reporting
A key responsibility for report preparers is assessing data requirements for nature-related reporting frameworks. This involves identifying relevant information, implementing appropriate data processes, and ensuring compliance with evolving reporting standards.
Here are the key considerations.
Understanding reporting needs
- Analyse nature-related reporting requirements specific to your organisation.
- Determine what data needs to be measured and how it should be collected.
- Engage with internal teams (eg, analysts, sustainability, procurement, and operations) to identify existing relevant data.
Ensuring high-quality data
- High-quality data enhances disclosure reliability and assurance readiness.
- Nature-related data may be monetary, quantitative, or qualitative—accountants must ensure data integrity and consistency.
- Given data availability challenges, assumptions and estimates may be required, requiring professional judgement and a proportionate approach.
Key actions for report preparers
- Implement rigorous controls to improve data accuracy and completeness, reducing errors and misstatements.
- Clearly document judgements, assumptions, and estimates used in reporting.
- Develop reliable and replicable metrics to ensure comparability over time.
- Align nature-related data collection with existing financial reporting systems, ensuring efficiency.
- Gather transparent evidence for internal and external audits.
Challenges and implementation considerations
- Traditional financial reporting systems may not be designed for nature-related disclosures, so adaptation will be necessary.
- Integrating value chain data can be particularly challenging, requiring collaboration with external parties.
- A pragmatic and transparent approach is needed to ensure accurate and decision-useful information.
Adapting reporting systems to include nature-related considerations will take time, but early action is essential. COSO’s guidance on “Achieving Effective Internal Control Over Sustainability Reporting” offers further insights into implementing robust sustainability reporting processes.
4. Integrate nature-related issues into financial reporting
Nature-related risks and opportunities are increasingly relevant to financial statements. Although IFRS Accounting Standards do not explicitly cover nature, they require disclosure where material financial impacts exist.
- Identify how nature-related risks affect asset valuations, liabilities, and cash flows.
- Consider potential financial impacts from regulatory changes, resource dependencies, and reputational risks.
- Apply the IASB’s guidance on climate and nature-related uncertainties to financial reporting.
- Assess whether nature-related performance indicators should be included in management commentary and investor briefings.
- Ensure that board-level governance structures are aligned with sustainability reporting priorities.
5. Engage with internal and external stakeholders
Nature-related disclosures require collaboration across multiple teams, including finance, sustainability, risk management, and auditing. Report preparers should do the following.
- Communicate with internal audit teams to ensure governance and compliance.
- Work with external auditors and assurance providers to validate disclosures.
- Provide stakeholders with clear and transparent information to enhance decision-making.
- Train financial teams on emerging nature-related reporting obligations to improve cross-functional collaboration.
- Engage with investors and regulators to anticipate future reporting expectations.
Accountants preparing financial and non-financial reports play a pivotal role in integrating nature into corporate disclosures. By understanding nature-related risks, aligning reporting with regulatory requirements, and implementing robust data controls, report preparers can enhance transparency and stakeholder confidence. As regulatory landscapes evolve, finance professionals must proactively adapt to ensure that nature-related financial impacts are effectively communicated. Organisations that lead in nature reporting will not only meet compliance requirements but also gain a competitive edge by demonstrating resilience and sustainability in an increasingly nature-conscious economy.