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What are the Regulators Recommendations for FY24 Sustainability Statements? ESMA has issued its priorities and will focus on:  👉materiality considerations in reporting under the ESRS 👉scope and structure of the sustainability statements 👉and disclosures related to Article 8 of the Taxonomy Regulation Here: https://lnkd.in/eqTU9DrM (from page 5) 👉Priority 1: Materiality considerations in reporting under ESRS Materiality Assessment: Corner stone for determining information in the sustainability statement Guidance: Follow EFRAG’s Implementation Guidance on Materiality Assessment (IG1) Due Diligence: Sustainability due diligence and stakeholder engagement are critical Stakeholder Engagement: Must be transparent, detailing how stakeholders are identified and prioritized Disclosure Process: Detailed disclosures per ESRS 2 are crucial (DR IRO-1, including input parameters and disaggregation for impacts, risks, and opportunities) Quantitative Evidence: Use quantitative information where possible for materiality assessment All DRs and datapoints in ESRS 2 are mandatory. Policies, Actions, Targets: Mandatory disclosures for each material sustainability matter Entity-Specific Information: Required if material and meets qualitative characteristics Climate Change: if an issuer omits all DRs in ESRS E1, it shall provide a detailed explanation Content Index: List DRs complied with, including page numbers and paragraphs, to aid navigation EU Legislation: Include a table of all datapoints derived from EU legislation 👉Priority 2a: Scope  Same consolidation scope for sustainability and financial statements Material Metrics: Once determined material for the group, data for the entire group must be included. Value Chain Information: Extended to cover material IROs in the value chain Transitional Reliefs: for value chain information in the first 3 years BUT issuers must explain efforts to obtain value chain information and future plans 👉Priority 2b: Structure of the Sustainability statement Structure prescribed by ESRS 1, Section 8. Encouraged to use Appendix F for detailed structure. XReferencing: Ensure compliance with presentation objectives when using Xreferencing and incorporation by reference Connectivity: Provide information on connections to other corporate reporting parts  Monetary Amounts: Reference corresponding information in financial statements for direct connectivity 👉Priority 3 : EU Taxonomy ESMA’s 2023 reco remain valid (Use of templates, Avoidance of double counting, Scanning activities for all environmental objectives, Qualitative disclosures on compliance with technical screening criteria, Reporting on CapEx plans) Mandatory use of templates without adaptation Assess and report eligibility and alignment for multiple environmental objectives Reference financial statements to enable reconciliation Disclose Capex plans Consider the EU Commission FAQs

Traditional consulting is criticized a lot, for many different reasons. This is what a 180 degree turn looks like—and why it may resolve the issues. 1. Expert and Expertise-Based → Skill and Development-Based Instead of suggesting they have the answers, consultants help clients develop answers themselves 2. Advice-Oriented → Cocreation-Oriented Instead of giving their advice, consultants co-create solutions together with the client 3. Problem-Focused → Solution-Focused Instead of analyzing problems of the past, consultants work towards solutions for the future 4. Project-Based → Process-Based Instead of working on projects with a clear end, consultants stand by their clients throughout an entire process 5. Analytical and Structured → Integrative and Structured Instead of analyzing mechanistically for details, consultants look at the bigger picture and what matters most 6. Hypothesis-Driven → Discovery-Driven Instead of validating a quickly formulated solution, consultants let solutions emerge through a discovery process 7. Fact-Based and Quantitative → Judgment-Based and Qualitative Instead of over-emphasizing numbers and trends, consultants also rely on people’s insights, ideas and intuitions 8. Best-Practice-Led → Context-Led Instead of copying solutions from elsewhere, consultants create organization-specific solutions 9. Brainstorming-Based → Elicitation-Based Instead of pressure cooking ideas, consultants harvest pre-existing ideas and stretch them 10. Persuasive → Engaging Instead of creating buy in through a fancy presentation, consultants engage with clients all the time 11. Long-Cycle and Planning-Based → Short-Cycle and Action-Based Instead of focusing on analysis and planning, consultants help clients move into action and adapt 12. Top Management-Focused → Organization-Focused Instead of seeing the CEO as their client, consultants see the entire organization as their client This is quite a change, and indeed a 180 degree turn compared to the traditional consulting model. What do you think, how much is it the solution for the problem? === Looking for a non-traditional strategy consultant? At Strategy.Inc we have recently expanded with offering non-traditional consulting services. See https://lnkd.in/eQPKbWe5 Want to become a non-traditional strategy consultant yourself? Check our Certified Strategy & Implementation Consultant (CSIC) program on https://lnkd.in/eQYY8cFE #consulting #organizationmanagement #strategyexecution