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?

1. The company is doing business with publicly traded companies.
2. The company sells to non-US entities in Europe and is subject to EU sustainability reporting requirements starting in 2024.
3. 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.
4. The company has >$7M in sales to the Federal Government.
5. The company aspires to convert from private to public.
6. 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:

1. Conducting a materiality/risk assessment, gap analysis
2. Identifying metrics and reporting requirements
3. Developing and testing policies/controls/procedures
4. Implementing tax strategies
5. 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.