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Australian Energy Producers Journal Australian Energy Producers Journal Society
Journal of Australian Energy Producers
RESEARCH ARTICLE (Non peer reviewed)

Seeing sustainability reporting through a lens of value creation

Katelyn Bonato A *
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- Author Affiliations

A PricewaterhouseCoopers (PwC) Australia, Energy Transition, Melbourne, Vic., Australia.

* Correspondence to: katelyn.bonato@pwc.com

The APPEA Journal 63 S40-S43 https://doi.org/10.1071/AJ22095
Accepted: 17 February 2023   Published: 11 May 2023

© 2023 The Author(s) (or their employer(s)). Published by CSIRO Publishing on behalf of APPEA.

Abstract

With a global push towards achieving the Paris Agreement as an imperative, there is a growing focus on how this will be achieved, and the role of organisations in supporting the transition to a net-zero economy and broader sustainability action. Investment decision-making is increasingly being informed by sustainability information, with stakeholders demanding greater transparency and comparability of disclosures, especially climate-related disclosures from organisations typically categorised as heavy emitters. This has ramifications for the oil and gas industry. Today, the sustainability reporting landscape is complicated, with a proliferation of sustainability disclosure frameworks developed by various standard setters. In an effort to standardise disclosures, the International Financial Reporting Standards (IFRS) Foundation launched the International Sustainability Standards Board (ISSB) in November 2021 to develop baseline global sustainability reporting standards including for climate disclosure (based on Taskforce on Climate-Related Financial Disclosures). We have also seen proposals from The US Securities Exchange Commission on climate-related disclosures, which have sparked extensive public comment. Locally, the Government has committed to introducing standardised internationally aligned reporting requirements, including climate-related disclosures, which will be mandatory for certain entities. Regardless of exactly where each jurisdiction lands, it is clear that the sustainability reporting requirements will be significant, leading to increased costs for reporters, resulting in a business imperative to leverage value creation from this compliance transformation. Indeed, organisations putting sustainability at the heart of their business strategy will be the game changer in the new sustainable and equitable energy transition. And just as there will be leaders, there will also be laggards who risk value erosion.

Keywords: climate-related disclosures, climate risk, ESG, ESG assurance, ESG reporting, International Sustainability Standards Board, ISSB, Paris-aligned financial reporting, SASB, sustainability, sustainability reporting, TCFD, Treasury consultation on climate-related reporting, value creation in ESG, value creation in reporting.

Katelyn Bonato is a Partner in PwC’s Energy Transition Team, specialising in assessing the impact of climate and natural capital risk from a strategic, operational and reporting level. With 18 years of professional services experience, across Australia and Switzerland, she has significant experience understanding climate risk in financial reporting and enterprise value, leveraging her deep technical accounting expertise to help clients understand their impact of climate risk strategies on financial and non-financial reporting, including Taskforce on Climate-Related Financial Disclosures (TCFD), Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), International Sustainability Standards Board (ISSB) and proposed US SEC and Taskforce on Nature-Related Financial Disclosures (TNFD) disclosures. Katelyn brings together her financial reporting and sustainability expertise to embed sustainability within organisations. Katelyn graduated with a Bachelor of Business and Commerce, and a Bachelor of Communications from Monash University, and she is a member of the Chartered Accountants Australia and New Zealand.


References

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PwC (2021) Why ESG is core to Private Equity’s value creation agenda. Report, September 2021. Available at https://www.pwc.com.au/deals/six-ways-esg-creates-value-for-private-equity.html

PwC (2022a) ESG reporting in Australia - change afoot, but are companies ready? Report, 2022. Available at https://www.pwc.com.au/assurance/environmental-social-and-governance-reporting.html

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The Treasury (2022) Climate-related financial disclosure, consultation paper, December 2022. p. 5. Available at https://treasury.gov.au/sites/default/files/2022-12/c2022-314397_0.pdf