Climate change reporting
Jonathan Labrey, chief strategy officer, IIRC, explains why integrated reporting is the corporate antidote to climate change
In his now famous speech of September 2015, known as 'Breaking the tragedy of horizon', Bank of England governor Mark Carney told an audience of insurers at Lloyds of London: "We don't need an army of actuaries to tell us that the catastrophic impacts of climate change will be felt beyond the traditional horizons of most actions, it will impose costs on future generations that the current one has little direct incentive to fix." What's more, he said, once climate change becomes a defining issue for financial stability, it may already be "too late".
It is a worrying reality that the global economy finds itself in. Carney's speech was a call to change our methods and extend the limits of our outlook beyond the short-term, to think not in quarter-years or even annually, but over future business and economic cycles. For it is the preservation of our planet's ecosystem that will, in turn, restack the odds in favour of a prosperous and balanced economy. If we continue to over-exploit natural capital it will cause growing price volatility and business constraints across the world economy.
This is an extract from the Business & Management Magazine, Issue 275, June 2019.
Find out more
Full article is available to Business and Management Faculty members and subscribers of Faculties Online.