Climate change poses serious risks and opportunities to almost all sectors of the economy, but the way in which businesses are affected is varied and complex, making it difficult to assess what the risks and opportunities are.
This means that businesses are not able to effectively define risks and opportunities, and are not able to generate a defined approach to managing the impacts of climate change on their operations.
This can have an adverse effect on a business’s long term sustainability and influence the behaviour of investors and customers alike.
In order to make the process of reporting easier, on June 29 2017 The Task Force on Climate Change related Financial Disclosures, an organisation promoting best , published guidance focussing on 4 core operational characteristics of businesses:
- Risk Management
- Metrics and Targets
These 4 key reporting areas overlap with other recognised non-financial and environmental reporting initiatives, allowing for easier integration with existing reporting.
In addition to this, guidance has been published on how to implement recommendations for:
- Financial Industries – banks, Insurance companies, Asset Managers, Asset Owners
- Non-Financial Groups – Energy, transportation, materials and buildings, agriculture, food & forest products.
The end goal of this reporting guidance is to help businesses identify the climate change risks and opportunities that apply to their activities and:
- More accurately price climate risk, and;
- Appropriately allocate capital to mitigate risk and seize opportunities to maximise profits and positive environmental impacts.
If your business needs support and advice around climate change management strategies and non-financial reporting, The Green Energy Advice Bureau is here to help.
Get in touch today to find out how your business can benefit from our expertise.