The Cost of Inaction 2024

Monitor risks and report on progressStep 4 Set up climate risk monitoring While many companies view monitoring and reporting on progress as a burden, it can become a driver for performance. Instead of treating it as a compliance checklist for external audiences, companies should integrate climate risk monitoring and external reporting into their operations and planning. When reporting is integrated as a key driver of performance, it enables organizations to better tackle risks and seize opportunities. But if it is seen as a compliance checklist, reporting can become a burden. Simon Henzell-Thomas, Global Director of Climate & Nature, Ingka Group (IKEA)Disclose material exposure and adaptation activities Transparent reporting – on both adaptation and mitigation efforts – is essential for building stakeholder confidence. Reporting does not just ensure compliance with mandatory and emerging requirements (e.g. from the EU’s Corporate Sustainability Reporting Directive and the International Sustainability Standards Board); it is also an opportunity to build a differentiated narrative for investors and partners seeking sustainable and resilient investments and green products. Adopting practices to monitor risks and report on progress enables continuous improvement. Companies need to learn from past experiences and adapt strategies to better manage future climate challenges. Given the ever-evolving nature of climate conditions and risks, this iterative process is essential. The Cost of Inaction: A CEO Guide to Navigating Climate Risk 45