If you're navigating your first climate disclosure, you're in good company. ESG teams across many large U.S. corporations are stepping up to meet growing expectations from regulators, investors, and customers. It can feel like a lot — but with the right tools and approach, you can move forward confidently.

This guide offers clear, practical steps to help you prepare your first disclosure and build a strong foundation for future reporting.

Why Climate Data Matters Now

Climate reporting has become a key part of risk management and business planning. As climate change introduces new physical and regulatory risks, stakeholders are asking for visibility into your company’s environmental performance.

Investors want to understand exposure to climate-related risks. Customers increasingly prefer suppliers with low-carbon footprints. And regulators are stepping in with formal requirements. In this environment, transparent disclosure isn’t just compliance — it’s a smart business move.

Know the Key Rules

A few major frameworks are shaping the disclosure landscape:

• CSRD (EU): Requires large companies operating in the EU to disclose Scope 1, 2, and 3 emissions and climate-related risks. A recent proposal would delay reporting deadlines to 2028 and focus only on companies with 1,000+ employees and over €50M in revenue.

• California SB 253: Applies to U.S. companies with over $1B in revenue doing business in California. Scope 1 and 2 emissions reporting (with limited assurance) begins in 2026 using FY2025 data. Scope 3 reporting follows in 2027.

• SECR (UK): Requires UK-based companies to include emissions and energy use in annual financial reports. Even with a longer financial year, disclosures must be made every 12 months.

Whether or not you're currently subject to these regulations, understanding them now will prepare your team for future expectations.

How Disclosure Builds Business Value

Beyond compliance, climate disclosure can strengthen your operations. Measuring emissions often uncovers ways to reduce waste and energy costs. Disclosure also supports access to capital and helps benchmark your performance against peers.

In short, transparency creates opportunity. It shows that your company is proactive, accountable, and ready to adapt.

6 Practical Steps to Get Started

1. Clarify What You’re Being Asked to Report
   Are you responding to a regulation like CSRD or a customer request? Understand which scopes (1, 2, 3) and topics (risks, targets, governance) you need to cover. Familiarity with standards like the GHG Protocol, ISSB, and PCAF can help align your approach.

2. Define Boundaries and Assign Roles
   Establish what’s in scope based on ownership and control. Are you reporting as a subsidiary or parent company? Set up governance early — involving the right teams and leadership from the start will make the process smoother.

3. Collect the Right Data
   Scope 1 and 2 emissions data often lives in facilities and finance teams. Scope 3 involves broader value chain inputs — start by identifying which categories are most relevant. LoneReport can guide you through material category selection and supplier engagement.

4. Centralize and Automate
   Use a single system to manage your data. LoneReport helps unify emissions information across business units and formats it for various frameworks. This improves accuracy and reduces the burden of manual work.

5. Engage Key Stakeholders
   You'll need data from across the business — from HR and IT to procurement and logistics. Build relationships, explain the value of disclosure, and align on timelines. This step often unlocks cross-functional collaboration and buy-in.

6. Ensure Accuracy and Traceability
   Assurance requirements are growing. LoneReport supports traceable data management with full visibility into methodologies, emission factors, and change logs — so you're always audit-ready and confident in your numbers.

Keep Learning and Evolving

Climate regulations and frameworks are constantly changing. LoneReport’s built-in updates ensure you’re always aligned with the latest requirements, helping your team stay nimble in a shifting landscape.

Ready for the Road Ahead

Your first climate disclosure is an important milestone — and a chance to build lasting value. With strong data practices and support from LoneReport, you’ll be ready not only to respond to today’s demands but to shape a forward-looking sustainability strategy that grows with your business.