Marsh's Global Risk Centre and CDP, an NGO which helps entities manage their disclosure for environmental impacts have launched a new initiative to develop insights on the best practices for companies to assess and disclose their climate resiliency.
The announcement comes one year after the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) released its final recommendations, which established a clear and consistent framework for companies to voluntarily disclose climate-related financial information.
The research by the Global Risk Centre and CDP will leverage the organisations’ combined capabilities and expertise to offer practical guidance to businesses seeking to overcome the so-called “implementation gap” to effectively adopting the TCFD’s disclosure recommendations.
The partnership between both the Global Risk Centre and CDP has also culminated in a newly-issued report Reporting Climate Resilience: The Challenges Ahead, which outlines the current state of progress of the TCFD recommendations and elaborates on the main challenges organisations face as they seek to adopt them, namely ensuring leadership support for enhanced disclosure; revising risk assessment processes; and applying scenario analysis to climate change.
“Climate risks and opportunities are not abstract concepts. They are essential for creating a business model that delivers long-term value,” said the Global Risk Centre’s executive director Alex Wittenberg.
“The Global Risk Centre seeks to address those pervasive risks that have the greatest long-term implications for the global economy. Climate-related risks and opportunities, and the associated transition and regulatory changes, are going to have a tremendous impact on businesses over the next decade. The TCFD framework is a robust approach for companies to understand and build their climate resiliency.”
“The disclosure of climate impact, risk and opportunity is the foundation of both investment accountability and opportunity. What gets measured gets managed," said CDP's engagement director to the TCFD Jane Stevensen, “The real gain for companies in disclosing climate-related risks is the process itself, which clarifies new risks and business impacts critical to long-term sustainable success.”
In early 2019, the Global Risk Center and CDP will release additional research providing guidance and case studies for organisations on how to implement the TCFD framework.
The Reporting Climate Resilience: The Challenges Ahead report is available here.