Resource Database

The GARP Risk Institute (GRI) recently undertook a global, cross-sectoral survey of firms’ approaches to managing the financial risks associated with climate change. That survey indicated that climate risk management is generally in its infancy, but that firms want to learn and improve their practices. This paper provides a guide to the risk implications of climate change, starting with a brief overview of the current scientific and regulatory context, and then examining the financial risks for different types of financial institutions. It concludes with some practical next steps.

The report sets out a proposed framework for assessing financial impacts on the liabilities side of the balance sheet from physical climate change risk and the relevance of these impacts to a wide range of business decisions.

Following changes to pension scheme investment regulations, from October 2019, UK pension trustees must update their scheme’s SIP to set out their policies on ESG, climate change and stewardship activities. Additional requirements apply from 2020 to trust based DC schemes. Similar changes are anticipated for contract based schemes and their IGCs, following an FCA consultation, expected in the first quarter of 2019. Against the backdrop of regulatory change, climate change falls heavily under the spotlight. Pages 7-9 looks at how trustees’ fiduciary duties require a prudent assessment of risks, and pages 10-12 looks in detail at how trustees should apply this to their assessment of climate change risks specifically.

This primer sets out some of the key developments in climate-related disclosure relevant to financial report preparation and assurance in 2019.

The Network for Greening the Financial System (NGFS), as a coalition of the willing and a voluntary, consensus-based forum provides six recommendations for central banks, supervisors, policymakers and financial institutions to enhance their role in the greening of the financial system and the managing of environment and climate-related risks. The recommendations are not binding and reflect the best practices identified by NGFS members to facilitate the role of the financial sector in achieving the objectives of the Paris Agreement.

Ahead of the launch of the “TCFD Implementation Guide”, CDSB and the SASB have published a checklist to help you prepare for effective TCFD-aligned disclosures. The checklist includes 11 preliminary steps that you can take to start integrating the TCFD recommendations into standard business processes.

This report provides industry perspectives from a climate risk awareness survey conducted in partnership with the International Association of Credit Portfolio Managers (IACPM), across 45 global financial institutions. The report presents how institutions can integrate climate considerations and opportunities into their financial risk management frameworks and provide guidance on implementing the TCFD recommendations.

The intention of this position paper is to provide insurance sector risk professionals, and wider stakeholders, with a clear understanding of climate change implications for the insurance industry, both from an underwriting and investment perspective, and to equip them to challenge their businesses and clients in their responses to climate change. The paper aims to navigate the main issues, and provide a clear and up-to-date view of the climate change challenge, centred around the potential impacts on the insurance sector.

The time to act is upon us. The climate is changing and ‘the heat is on’.

This Sustainability Reporting Guide seeks to provide guidance on how to embed sustainability in to organisations and help identify, evaluate and manage material economic, environmental and social risks and opportunities.

This ‘how to’ guide is intended to support asset owner trustees and boards in their deliberations on incorporating climate-related risks and opportunities into board level processes. As a practical tool, the guide provides a series of questions and answers, examples of best practice and useful resources, to support implementation at each step of the investment process.

This guidance is designed to supplement COSO’s updated enterprise risk management (ERM) framework. This supplemental guidance addresses an increasing need for companies to integrate environmental, social and governance (ESG)-related risks into their ERM processes.

This guide outlines the expectations that investors have of listed companies on their climate disclosure and is designed to provide a practical tool for investors as they work in partnership with their investee companies in Asia. To understand the current state of play, the Asia Investor Group on Climate Change (AIGCC) commissioned analysis by EY and FTSE Russell to look at climate reporting from different perspectives. EY undertook detailed analysis in four major Asian markets across high risk sectors to provide the first benchmark of corporate climate disclosure in Asia against the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).