Climate risk disclosure considerations | Risk Advisory | Deloitte Netherlands

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Climate risk

A guide to support robust climate risk disclosures

Climate change is happening faster than anticipated. Our planet, society and economy are already being affected and climate science shows us the risks are real. Organisations must therefore urgently address and disclose their climate risks. It is time to act. Our key questions and suggested first steps will help organisations to prepare for robust climate risk disclosures.

What is happening?

The global landscape on climate risk disclosures is evolving. On a global level, the concerns about climate change are reflected by the G7 finance ministers and several central bank governors, who are stating their support for mandatory climate risk disclosure in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). In Europe, climate disclosure requirements are part of the upcoming Corporate Sustainability Reporting Directive (CSRD), applying to a large group of organisations. These developments stress the importance of sound climate risk disclosures.

Where to start?

The TCFD framework can be seen as a strategic risk management framework for climate risk and can feed into sustainability disclosures. Most importantly, it can be used as a tool to understand and integrate climate risk and opportunities into business processes.

In this article we describe the evolving landscape of climate risk disclosures, the TCFD framework and the value of assurance to support climate risk disclosures. Also, we have included key questions for board members, a discussion of climate risk and renumeration policies, and suggested first steps for organisations to take in the journey towards robust climate risk disclosures.

More information?

For more information about climate risk disclosures, refer to the downloadable report or contact one of the following Deloitte experts.

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