Climate Change & Sustainability Report Sample

Climate Change & Sustainability

Finance - Report

Task Instruction

Solution

1.0 Introduction  

Climate change is the biggest issue and challenge for humans and the planet. Climate change has impacted rising temperatures, increased frequency, sea level rise, ecosystem disruptions, human health and agriculture.As per MBA Assignment Expert, 2.0 The level of firm preparedness to comply with the TCFD recommendation in proposed mandatory versus non-mandatory jurisdictions

Unilever

Unilever is a multinational British consumer goods company. Unilever has introduced over 100 other companies and leaders in business who support the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). To follow the requirement, the company's Task Force was developed with the help of the Financial Stability Board (FSB) in 2015 (Carney, 2019). It can be identified that they release their recommendations and final report. In the market, the company faces an increasing investor number, and they are demanding more data or information about how Unilever is addressing the negative impact of climate change. In that case, Unilever addresses the significance of opening climate-related opportunities and risks (Baragiola et al. 2022). It can be identified that the TCFD recommendations played a significant step in forwarding market forces, such as running a significant allocation of capital. As a result, the company help to introduce a smooth transition process to low-carbon emissions (Carney, 2019). That is a sustainable step for the company in the industry.

Coca-Cola

the CCBJH Group has considered climate change the most significant societal issue. In 2022, they endorsed the TCFD recommendations. The company participated in the Climate Change Initiative and TCFD Consortium. The company decided to take action to decrease GHG emissions (Senay et al. 2022). The company wants to reduce the CO2 emission of bottles by introducing some CO2 emission plans, such as using 100 per cent recycled PET bottles which is maintained in the company's flagship products in 2022 (en.ccbji.co.jp, 2023). In addition, the company switched the ordinary PET bottles and introduced 100 per cent recycled PET bottles. Moreover, in the 1970s, Coca-Cola used a system to decrease the weight of containers and packaging to decrease plastic use and efficiently use their finite resources. For example, In 2021, Coca-Cola 700ml PET bottles used less weight, from 42g to 27g (en.ccbji.co.jp, 2023). The company use 100 per cent recycled PET bottles for their 37 products from 5 brands. 

3.0 The drivers of the TCFD-aligned climate-related disclosures

Unilever

Unilever identified itself as a global leader in corporate sustainability and was awarded a place on the Climate A List compiled with the help of CDP. in addition; it was alos awarded for the non-profit environmental disclosure platform. The company has several drivers behind the TCFD-aligned climate-related disclosures such as investor demand (Abhayawansa et al. 2022). They are looking for information to manage climate-related opportunities and risks. With the help of TCFD-aligned disclosures, the company meets investors' requirements and attracts capital for sustainable investments. Another driver is Regulatory requirements. In that case, regulators and Governments implement regulations and requirements for companies to disclose their climate-related opportunities and risk (Carney, 2019)s. For example, CDP seeks a set science-based target, shifting renewable energy, and internal carbon pricing. 

Coca-cola

In that situation, the company highlights their reporting approach with the help of combining two high-level reports – their Annual Review and  Sustainability Review — into a strategic, single engaging, substantive report which serves a broad range of investors and stakeholders (Ditlev-Simonsen et al. 2022). The company see climate-related disclosures follow its commitment to climate action and sustainability. As a result, that helps develop loyalty and trust among other stakeholders and customers (Abhayawansa et al. 2022). For example, In 2021, BuzzWord worked with the company to create the World Without Waste Report, which deeply impacted the company's key issues, packaging goals, partnerships and progress.

4.0 The role of the accounting professions and accountants in issues of climate-related disclosures

Unilever 

The company's finance professionals and accountants play a significant role in developing to implement climate and social values and other environments to develop the traditional report (Adams, 2022). In addition, they also provide and identify an analysis of the interdependencies of risks and opportunities.

Coca-cola

The company's finance professionals and Accountants identify risk assessment function, adaptive capacity, valuation action, and disclosure action. In addition, they respond to the climate change issues such as greenhouse and CO2 emissions with the help of Science-Based Targets (Marlowe et al. 2022). 

5.0 Conclusion 

The report describes climate change issues and long-term sustainability. It can be identified how the companies Unilever and Coca-Cola take steps to deal with climate change issues. In addition, it also mentioned the most important driver of the TCFD and how they work for both companies.

References

Abhayawansa, S., & Adams, C. (2022). Towards a conceptual framework for non-financial reporting inclusive of pandemic and climate risk reporting. Meditari Accountancy Research, 30(3), 710-738. https://dro.dur.ac.uk/33146/1/33146.pdf

Adams, C. A. (2022). Accounting and sustainability: an introduction. In Handbook of Accounting and Sustainability (pp. 1-8). Edward Elgar Publishing. https://drcaroladams.net/accounting-and-sustainability-an-introduction/

Baragiola, G., & Mauri, M. (2022). SDGs and the private sector: Unilever and P&G case studies. https://www.politesi.polimi.it/bitstream/10589/195916/1/2022_12_Baragiola_Mauri.pdf

Carney, M. (2019). TCFD: strengthening the foundations of sustainable finance. Proceedings of the TCFD Summit. https://www.suerf.org/docx/f_29000b029c61328a948b1c7afa01cea3_9319_suerf.pdf

Ditlev-Simonsen, C. D., & Ditlev-Simonsen, C. D. (2022). Key tools for social-and environmental performance, and the UN sustainable development goals (SDGs). A Guide to Sustainable Corporate Responsibility: From Theory to Action, 61-101. https://link.springer.com/chapter/10.1007/978-3-030-88203-7_4

Marlowe, J., & Clarke, A. (2022). Carbon accounting: A systematic literature review and directions for future research. Green Finance, 4(1), 71-87. http://www.aimspress.com/aimspress-data/gf/2022/1/PDF/GF-04-01-004.pdf

Senay, E., Cort, T., Perkison, W., Laestadius, J. G., & Sherman, J. D. (2022). What Can Hospitals Learn from The Coca-Cola Company? Health Care Sustainability Reporting. NEJM Catalyst Innovations in Care Delivery, 3(3), CAT-21. https://catalyst.nejm.org/doi/pdf/10.1056/CAT.21.0362

TCFD｜Sustainability｜Coca-Cola Bottlers Japan Inc.. (2023). Retrieved March 13, 2023, from https://en.ccbji.co.jp/csv/tcfd/