The climate conversation has rapidly shifted and continues to do so. Investors are demanding climate disclosure, central banks are working together to ‘green the financial system’ and expectations of employees and customers alike are becoming ever more demanding. The need to manage climate risk and support an orderly transition to a low carbon, resilient economy is no longer a matter of conscience, but a strategic and financial imperative.
Source: Cambridge University Centre for Risk Studies’ 2019 estimate
For public and commercial organisations, specific impetus and motivations for action come from numerous sources, including: legal, liability and regulatory; financial; the need to build asset and infrastructure resilience; corporate responsibility; and reputational impact.
Reflecting this diversity of drivers, climate risk is truly multi-dimensional. The potential consequences vary from physical and economic impacts to liability risks and risk arising from the pace of transition to a low carbon economy.
To respond effectively, organisations will need to adapt their management of climate risks in several areas, such as:
- Assessment and quantification in the short and long term
- Transition and resilience planning
- Financial reporting and disclosure
- Investment strategy and implementation
- Capital management
- Risk hedging and transfer
- Health/demography
- Human capital: talent, rewards and culture alignment; non-executive director responsibilities; pensions management; corporate governance.
Download
Title | File Type | File Size |
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TCFD: is UK plc readying itself for climate-related financial disclosures? | .7 MB | |
Climate risk solutions for our changing world | 2.5 MB | |
Tackling sustainability challenges through collaborative initiatives | .2 MB | |
Sustainable Investment – a call to action | .8 MB | |
Sustainable Investment - Translating thinking into action | .7 MB | |
2019 Taskforce on Climate-related Financial Disclosures (TCFD) Statement | .1 MB | |
Climate Quantified | .5 MB |