Leverage our broad range of ESG platform and advisory services to understand your carbon and climate impact.
Who is required to report on their climate risks and opportunities?
Climate risk reporting is mandated in various jurisdictions. Many countries now require Task Force on Climate-Related Financial Disclosures (“TCFD”)-aligned reporting, including Brazil, Canada, the European Union, Hong Kong, Japan, New Zealand, Singapore, Switzerland, and the United Kingdom. Others, likeAustralia, have developed their own climate risk reporting regulations, largely based on TCFD.
When does reporting take place?
Climate risk reporting must be completed as part of annual reporting cycles and can be integrated into financial reporting.
What is included in a climate risk and opportunity assessment?
A climate risk and opportunity assessment involves conducting an in-depth analysis to determine exposure to physical and transition risks and opportunities across multiple climate scenarios to examine the effects of potential outcomes of a warming climate.
Scope of a climate risk and opportunity assessment
Climate risks and opportunities may need to be reported on both the entity (corporate) and product (fund) level, depending on the asset class of the reporting entity.
We measure and report on key carbon and climate metrics, including scope 1,2 and 3 carbon emissions at the fund and/ or entity-level
Net-zero target setting and robust decarbonisation strategies, aligned with the Science-Based Targets initiative
We conduct an in-depth climate risk and opportunity assessment, based on latest Intergovernmental Panel on Climate Change and Network for Greening the Financial System climate scenarios
TCFD/IFRS and CSRD aligned reporting on climate risks
Establish a climate-related strategy and governance processes to mitigate climate risks and capture climate opportunities
Governance
Stage 1:
Governance
The company’s structure and governance in place to manage climate-related risks and opportunities.
Stage 2:
Strategy
The actual and potential impacts of climate-related risks and opportunities on the company’s business, strategy, and financial planning.
Stage 3:
Risk management
The processes used by the company to identify, assess, and manage climate-related risks.
Stage 4:
Metrics and targets
The metrics and targets used to assess and manage relevant climate-related risks and opportunities.
