Deloitte Sri Lanka highlights climate disclosure driving business resilience and access to capital

From left: Deloitte South Asia Climate Change and Sustainability Leader Shailesh Tyagi,  Deloitte Sri Lanka ESG, Government and Public Services Leader Zahra Cader, Deloitte Sri Lanka Audit and Assurance Partner Chathumin Gunarathne and  Deloitte South Asia Climate Change and Sustainability, Strategy, Risk and Transactions Manager Piyush Yadav 

As climate disclosure requirements, investor expectations, and sustainability-related regulations continue to evolve globally, organisations are increasingly recognising sustainability as a strategic business imperative rather than a compliance exercise. This was a key theme emerging from Deloitte Sri Lanka’s exclusive client session, “From Compliance to Capital: Turning Climate Disclosure into Strategic Advantage”, held recently at the Sheraton Colombo. 

The session brought together senior business leaders, sustainability professionals and industry specialists to discuss the changing climate and regulatory landscape and its implications for business resilience, access to capital, governance and long-term value creation across sectors, including telecommunications, financial services, manufacturing and agriculture. 

Through insights shared by Deloitte professionals from Sri Lanka and India, the session explored how organisations can move beyond compliance-driven disclosure requirements and integrate sustainability considerations into broader business strategy, resilience, governance, financing, and long-term value creation.

The session, led by Deloitte South Asia Climate Change and Sustainability Leader Shailesh Tyagi; and Deloitte South Asia Climate Change and Sustainability, Strategy, Risk and Transactions Manager Piyush Yadav explored global climate developments and the operationalisation of SLFRS S2 through climate risk and scenario analysis. Discussions covered climate-related financial disclosures, decarbonisation pathways, Scope 1, 2 and 3 emissions, and the growing importance of assurance-ready sustainability data.

Reflecting on the evolution of sustainability from a reporting and compliance exercise to a strategic business priority, Tyagi said, “Leading organisations are increasingly viewing sustainability as a driver of business value rather than a reporting obligation. Climate risk management and scenario analysis provide critical insights that help businesses strengthen resilience, improve access to capital, and identify opportunities that support long-term growth and competitiveness.”

The session led by Deloitte Sri Lanka ESG, Government and Public Services Leader Zahra Cader, and Deloitte Sri Lanka Audit and  Assurance Partner Chathumin Gunarathne focused on developments within the local market, including SLFRS S1 and S2, key regulatory changes and climate policy considerations.

Cader said, “As Sri Lanka’s sustainability landscape continues to evolve, organisations are facing growing expectations from regulators, investors, lenders, and other stakeholders. While challenges remain around data, governance, and implementation, businesses that take a structured and practical approach to sustainability will be better positioned to access finance, strengthen stakeholder trust, and build long-term resilience.”

Gunarathne said, “As sustainability expectations continue to evolve, organisations must look beyond reporting requirements and focus on how climate-related risks and opportunities influence business performance. Strong governance, reliable data, and strategic planning are becoming critical enablers of resilience, competitiveness, and sustainable growth.”

The discussion highlighted sustainability assurance requirements, climate-related governance expectations, updates to sustainability-related corporate governance requirements, developments in sustainable finance and green financing mechanisms, sustainable bond frameworks, and the growing influence of sustainability-related disclosures on investment and financing decisions. 

The session concluded with an engaging exchange of ideas on the future of sustainability reporting and climate resilience in Sri Lanka. Participants also learned about Deloitte Sri Lanka’s plans to continue these conversations through a broader series of sustainability-focused sessions aimed at supporting organisations on their sustainability journeys.

Deloitte Sri Lanka continues to support organisations in navigating the evolving sustainability landscape by helping businesses strengthen resilience, respond to changing regulatory expectations, improve access to sustainable finance, and translate climate-related disclosures into actionable business strategies that drive long-term sustainable growth and stakeholder confidence.