For instance, nature-based carbon capture projects, if viewed only as a method to absorb carbon emissions, may inadvertently harm biodiversity by relying on fast-growing monoculture plantations. A more holistic approach would instead involve planting more diverse, native species that attract and support local flora and fauna while engaging local communities in the process. This not only serves the purpose of absorbing emissions but also enhances biodiversity and community well-being. Ultimately, this reflects the need for companies to consider the broader environmental and social impacts of their climate actions.

The summit also emphasised the value of an integrated, future-proof reporting approach. By building a single framework that includes climate change, biodiversity, and community impact, companies can avoid repeatedly reworking their reporting processes as new sustainability issues arise, enabling them to respond more effectively to future challenges.

Setting ambitious sustainability targets is just the beginning; achieving them requires gathering accurate and reliable data. Yet, data collection alone isn’t enough, it must then be processed and transformed into information that can guide decision-making, a key theme raised throughout the summit.

Many organisations struggle with ESG data arriving in inconsistent formats from across their supply chain, making it difficult to obtain a full picture of their sustainability performance. To bridge this gap, companies can consider establishing a dedicated unit to process and interpret this information, turning raw data into insights that inform effective decision-making. For example, this unit could analyse emissions data from the company’s factories, offices, and transportation to identify the highest sources of emissions and subsequently develop targeted reduction strategies.

In this way, by focusing on the most problematic areas (the ‘red’) and improving them to ‘amber’, companies can achieve more significant overall improvements, rather than only enhancing areas that are already performing relatively well (near green).

For SMEs who may not have the resources to invest in a dedicated team, they can start by assigning ESG responsibilities to an existing team member who already manages compliance, finance, or operations. SMEs can also consider focusing on a few key ESG metrics that are most relevant to their industry and operations, rather than trying to address the full spectrum of ESG issues. This targeted approach allows for meaningful reporting and subsequent strategic decision-making without overwhelming resources.

Reliable data is not only crucial for internal decision-making but also for building investor confidence. By sharing transparent, usable information, companies allow investors to accurately assess the risks and opportunities in their sustainability claims, helping to avoid the pitfalls of greenwashing.

At the heart of the sustainability conversation lies the critical question: who ensures that companies are truly walking the talk? Accountants and auditors play a vital role in holding companies accountable, ensuring that what they publish in their sustainability reports aligns with their financial statements. This integrity gap often appears as a disconnect between optimistic sustainability reports and financial statements that fail to reflect the potential impact of climate change and other sustainability related risks on a company’s bottom line.

This accountability now extends beyond traditional financial measures. Auditors and accountants are being called upon to consider the broader picture – are climate risks and sustainability issues accurately reflected in a company’s financials? And if they are not, should they feel comfortable signing off on these statements? This expanded role may also involve verifying claims around being “nature-positive” and rooting out instances of greenwashing. If sustainability claims are unsubstantiated, it falls on the auditors and accountants to raise the red flag, ensuring that companies are not only claiming to make a difference but are substantiating those claims with verifiable evidence.

This evolving responsibility is not just about compliance; it’s an opportunity for accountants to expand their expertise into the sustainability domain. As companies increasingly seek to meet both financial and sustainability standards, accountants are well-positioned to ensure that sustainability efforts are genuine, accurate, and impactful.