Prepare Now for ESG Requirements Starting in 2024, 2025
As ESG continues to evolve as a global area of focus, companies in the private sector are not necessarily exempt from ESG reporting requirements. Here’s a checklist to gauge if having a conversation sooner vs. later makes sense from a strategic planning perspective.
Do any of these apply to your enterprise?
- The company is doing business with publicly traded companies.
- The company sells to non-US entities in Europe and is subject to EU sustainability reporting requirements starting in 2024.
- The company has >$1B in total worldwide revenue, is selling to companies in the state of California, and is subject to reporting starting in 2025.
- The company has >$7M in sales to the Federal Government.
- The company aspires to convert from private to public.
- Your bank has ESG requirements as conditions for financing.
An average company may take up 24 months of sustained effort to prepare for ESG. Read more about that process in The SEC’s Proposed Climate-Related Disclosures for Investors: Start Now : 2023 : Articles : Resources : CLA (CliftonLarsonAllen) (claconnect.com)
CLA is helping companies at various stages in their ESG journey. A typical program helps clients with:
- Conducting a materiality/risk assessment, gap analysis
- Identifying metrics and reporting requirements
- Developing and testing policies/controls/procedures
- Implementing tax strategies
- Supporting ongoing internal audits
As this is new territory to navigate and there are many technical nuances. CLA’s ESG professionals can help with that. Let’s talk.
Jennifer Clement is an executive sales and marketing leader specializing in value creation for the C-suite. In her current role at CLA, Jennifer collaborates on strategy with executives of global manufacturing and distribution companies to accelerate results. Previously Jennifer served as a Global Business Acceleration Leader for Complete Manufacturing and Distribution (CMD). During her time with CMD, Jennifer lived and worked in Asia from 2015-2019. Prior to CMD, she spent 10 years in senior care technology. Jennifer started her career at Johnson Controls (JCI) and spent nine years in leadership roles; followed by five years at Rockwell Automation (ROK) leading c-suite strategy and marketing operations.
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