Climate and Nature Risk Reporting Increases Despite Trump Administration Pushback

Corporate reporting on climate and nature risks is increasing despite resistance from the Trump administration, which continues to deny the proven science behind climate change. In an address to the General Assembly of the United Nations on Sept. 23, as reported by Reuters in one of our Top Stories this issue, Trump “dismissed climate change as ‘the greatest con job’ in the world” and renewed his attacks on renewable energy while promoting continued reliance on fossil fuels.

Reuters also reported that UN Secretary-General Antonio Guterres hosted a climate summit at the UN as he “tried to keep the world focused on continuing a global transition away from fossil fuels towards clean energy.” In June, Guterres was quoted saying “just follow the money,” highlighting the fact that US$2 trillion was invested worldwide in clean energy in 2024, compared to $1.2 trillion invested in fossil fuels. Investments in clean energy have increased about 70% in the last ten years.

While the US federal government is moving to eliminate reporting on greenhouse gas (GHG) emissions, widely recognized as a leading contributor to climate change, California is moving ahead with mandatory climate disclosure rules for companies doing business in the state. As reported in ESG News, California regulators recently published a list of 4,160 companies, including most S&P 500 firms, that must begin disclosing GHG emissions and climate-related financial risks beginning on Jan. 1, 2026.

ESG News reported that “60% of the named firms are headquartered outside California, meaning the rules will affect businesses with national and global operations.” In effect, the new rules “position California as a de facto national standard amid uncertainty over U.S. federal climate reporting.”

California’s approach to disclosing climate-related financial risks is closer to frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD), widely used in Europe and Asia. ESG News also highlights that by mandating Scope 3 reporting, California is moving ahead of most U.S. regulators and placing pressure on companies to improve supply chain transparency.

While mandatory climate reporting has been the primary focus of regulators, corporations are also increasingly adopting standards for disclosure of nature-related risks. In another Top Story, the Taskforce on Nature-related Financial Disclosures (TNFD) recently issued its inaugural Status Report which demonstrates significant progress in market practice and standard setter engagement on nature-related issues. According to TNFD, “climate change and nature loss are now widely acknowledged as challenges that demand an integrated response.”

TNFD’s Status Report showed that 620 organizations from over 50 countries or areas, with assets under management (AUM) of US$20 trillion, have publicly committed to getting started with nature-related reporting aligned to the TNFD recommendations, which were first issued in September 2023. Over 500 first- and second-generation TNFD reports have been published, and 78% of reporting companies have integrated the presentation of their climate and nature reporting.

The G&A team is closely following the rollout of new mandatory climate reporting in California and we are available to provide guidance on how to meet reporting requirements. We are also experts on various reporting frameworks including TCFD and TNFD, and can answer your questions on how to integrate these frameworks into your organization’s sustainability reporting programs. For more information contact us at: info@ga-institute.com.

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