Climate Risk Disclosure Considerations
A guide to support robust climate risk disclosures
May 25th, 2022
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.
Get the Report
Climate risk - A guide to support robust climate risk disclosures
Climate risks play an ever-increasing role in our modern-day economy. With climate change happening faster than anticipated (as shown in the recent IPCC report1 and recognised in the COP26 discussions) and already impacting our planet, society and the economy, it is clearly a material societal and business issue.
Organisations must therefore urgently address and disclose their climate risks, both to mitigate the alarming effects of climate change and to become more climate-resilient. Moreover, transparency regarding climate risk exposures and opportunities is essential for responsible investment decisions.
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 remuneration policies, and suggested first steps for organisations to take in the journey towards robust climate risk disclosures.
No results found