Rising to the Challenge of Climate Disclosure
Snapshot
- Investors, stakeholders, and regulators are increasingly looking to understand how organisations are addressing climate-related risk.
- Many governments are beginning to mandate climate-related financial disclosure in line with Task Force on Climate-Related Financial Disclosures (TCFD) recommendations.
- Organisations must understand the changing reporting environment in the Asia Pacific region and the impacts on governance, strategy, risk management, metrics, and targets.
Climate change ambition without clear disclosure is no longer an option for companies. Investors, stakeholders, and regulators are all looking to understand how organisations are addressing risks associated with changes in our global climate. Disclosures of climate-related risks currently lack standardisation and assurance, making comparisons across organisations difficult, as well as opening the door to ‘greenwashing’.
As a result, many governments are now mandating climate-related financial disclosure in line with Task Force on Climate-Related Financial Disclosures (TCFD) recommendations.
In Australia, the Australian Prudential Regulation Authority (APRA) has recently released guidelines on managing financial risks of climate change and target-setting[1].
Now is the time for companies to get ahead in their response to climate disclosure regulations. This means understanding the changing reporting environment and the impacts on governance, strategy, risk management, metrics, and targets to consider when developing effective disclosure frameworks.
Aon’s new report explores climate disclosure requirements across the Asia Pacific region and shares insights and guidance on developing TCFD-compliant disclosures.
[1] https://www.apra.gov.au/news-and-publications/apra-finalises-prudential-guidance-on-managing-financial-risks-of-climate
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