Business should report climate risk costs
Following a major event at Chartered Accountants’ Hall earlier this year to raise awareness of the Task Force on Climate-Related Financial Disclosure’s (TCFD) recommendations, ICAEW has produced a practical guide, ‘Reporting on climate risks and opportunities’, in association with the Carbon Trust.
With the support of G20 governments and driven by the Financial Stability Board, the TCFD recommendations have attracted much attention since publication last year. The new practical guide is designed to help organisations considering how best to implement the recommendations which, unlike other sustainability reporting frameworks, focus on communicating the financial impact of climate change on reporting organisations.
Dr Nigel Sleigh-Johnson, ICAEW Head of Financial Reporting, Audit and Assurance, said: “By bringing climate change discussions into the boardroom, the TCFD recommendations could act as a real catalyst for significant improvement in the quality and consistency of disclosures. We hope the final outcome will be a financial system where climate change impacts are well-understood by both companies and investors, where companies provide great disclosures about how they expect to build sustainable business models, transition to cleaner technologies and mitigate disruption from extreme weather conditions.
“Meeting investor expectations in this respect will lead to competitive advantage, greater confidence in business and ultimately to enhanced access to capital.”
The guidance answers FAQs in relation to benefits, implementation of the recommendations, and next steps.
The full guidance can be found here: icaew.com/tcfdguide
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