22 February 2024
Extreme weather events around the world have highlighted the need for action on climate, and for climate-related risk and opportunity assessments to be more deeply embedded into financial markets鈥� operations. Take-up of disclosures is increasing and more jurisdictions across the world are mandating their adoption.
First published in 2020, this guide has been updated to cover the new and additional requirements of the IFRS Standards and TNFD recommendations. It is intended for all users of climate-related financial disclosures, providing new insights into understanding and using climate-related disclosures to help you get the most decision-useful information.
Wendy Walford, IFoA Sustainability Board, said: 鈥淓conomic and investment decisions need to increasingly incorporate sustainability information, to understand the non-financial risks that enterprises are exposed to and how they are managing their position. This paper combines the sustainability skills and knowledge of IEMA experts with IFoA members specialising in financial risk management to provide a user-focused guide on how to make the best use of these disclosures, and respond to the evolution in reporting with a critical mindset.
鈥淲e hope this guide supports users of disclosures to feel confident in understanding and in applying the insights obtained, to support not only increased disclosures, but also their use in assessing how firms are adapting to our changing world, grappling with new opportunities and managing material risks.鈥�
Sarah Mukherjee MBE, IEMA CEO, said: 鈥淲hen making any financial assessment of companies around the world, climate change stands out as both a potential risk and an opportunity . The more that companies disclose climate-related information, the more likely we are to drive business and industry towards net zero and encourage more sustainable practices within supply chains鈥� The aim is to offer a valuable guide to help anyone better understand climate-related financial disclosures, as well as providing a helpful set of prompts to those working in this area.鈥�
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