Five key takeaways from the Corporate Disclosures: Climate Risk in Financial Reporting Forum 2026

Climate risk reporting continues to evolve, but one message came through clearly at the Climate Risk in Financial Reporting Forum 2026: organisations need to focus less on reporting more, and more on reporting what matters.

Corporate Disclosures brought together stakeholders from across the climate risk and reporting ecosystem, including representatives from business, finance, investment, assurance and standard-setting bodies. The discussion explored how organisations can improve climate-related disclosures, strengthen decision-making and better connect sustainability and financial reporting. 

Here are five key takeaways from the forum. 

1. Materiality remains one of the biggest challenges 

Materiality was a recurring theme throughout the discussions. 

Participants agreed that more work is needed to ensure annual reports focus on genuinely material information. While this isn't a new issue, there was particular emphasis on helping boards and preparers make clearer decisions about what should and shouldn't be included. 

It was proposed that sometimes greater transparency around why certain topics have been assessed as immaterial and therefore excluded from reporting, is as important as disclosures on material topics. Equally, attendees noted that materiality isn't static. Just because an issue was material in prior years year doesn't automatically mean it remains material today. 

The materiality assessment is also the key tool to avoid a checklist approach –disclosures shouldn’t be included simply because they appear in a reporting standard if they aren't material to the business. While the focus was on ISSB standards and financial materiality, the concepts discussed equally apply to a double materiality approach. 

Ultimately, the quality of the materiality assessment was seen as the foundation of high-quality reporting. 

2. Investors want reporting that is shorter and more focused 

Another key question raised was whether annual reports are becoming overloaded with information. 

Investors consistently called for reporting that is concise, relevant and focused on decision-useful information. While sophisticated investors often supplement company disclosures with data from ratings agencies and their own analysis, annual reports remain an important source of information. 

The challenge for organisations is finding the right balance. 

Providing too much information can obscure what's truly important. Providing too little can leave stakeholders without the context they need. 

The forum reinforced the idea that effective reporting isn't about volume. It's about clearly communicating the issues that matter most. [Again, highlighting the importance of an effective materiality assessment.] 

3. Finance is becoming the home of sustainability reporting 

One of the most significant developments discussed was the growing role of finance teams in sustainability reporting. 

Across many organisations, sustainability reporting responsibilities are increasingly moving into finance functions. While subject matter expertise remains within operational teams, finance is becoming the central point for consolidating, verifying and reporting sustainability data. 

This shift reflects the expectation that sustainability information should be subject to the same level of rigour as financial information. 

The role of audit committees is evolving too. Many are now overseeing sustainability reporting alongside traditional financial reporting responsibilities. At the same time, climate risk is increasingly being treated as a core business risk rather than a standalone sustainability issue. 

This marks an important shift in thinking. Climate considerations are becoming embedded into mainstream governance, risk management and decision-making processes. 

4. Connecting climate risk to financial planning remains difficult 

While organisations are becoming better at identifying and assessing climate risks, translating those risks into financial impacts remains a challenge. 

A key issue is the mismatch in time horizons. 

Climate scenario analysis often looks decades into the future, sometimes as far as 2050 and beyond. Financial planning cycles, however, are typically focused on the next three years. 

Bridging this gap isn't straightforward. 

Forum participants discussed the importance of connecting climate scenarios to financial plans, cash flow projections and strategic decision-making. Both risks and opportunities need to be considered. 

There was also recognition that context matters. Data alone doesn't tell the full story. For example, a climate scenario might show limited financial impact by 2050. However, if extending the analysis by a few years reveals significant consequences, that context could be critical for board-level discussions. Climate impacts rarely follow a straight line, making interpretation just as important as measurement. 

5. Better data is important, but people still matter 

While data quality continues to improve, attendees stressed that reporting is about more than numbers. 

Strong governance, professional judgement and effective challenge remain essential. Auditors and assurance providers were recognised as having an important role in testing assumptions, challenging management and supporting confidence in reported information. 

The discussion also touched on the growing influence of future leaders. Many professionals now moving into leadership roles have grown up with a greater awareness of environmental issues and personal responsibility for climate action. Those experiences are increasingly shaping how they think about risk, value creation and long-term business success. 

Technology also featured prominently. AI has the potential to simplify reporting processes and reduce the number of systems organisations rely on to produce external disclosures. However, its effectiveness depends on having structured, high-quality data. 

That, in turn, relies on greater alignment and standardisation of taxonomies across both financial and sustainability reporting. 

Looking ahead 

The forum highlighted how rapidly climate reporting is maturing. 

The conversation is no longer solely about disclosure requirements. Increasingly, organisations are focused on how climate risk connects to governance, financial planning, business resilience and long-term value creation. 

As reporting frameworks continue to develop, one principle remains constant: effective reporting starts with understanding what 's truly material and communicating it clearly.