With climate change coined as the key theme at the World Economic Forum (WEF) Annual Meeting 2020 in Davos, it is no longer a topic reserved for scientists and governments, but one that companies must address in order to stay in the game as the economy transition to a low carbon path.
With the call for action comes the demand for better disclosures on climate change actions. Investors, regulators and other stakeholders are challenging companies to demonstrate an integrated, strategic approach to addressing climate-change risks and opportunities. As the most prominent custodian of a corporation, the Board will be responsible for exerting effective climate governance and make appropriate decisions for the long-term resilience of their organisations.
Establishing climate governance
Climate change is a complex topic and directors' responsibilities around climate change often remain unclear. The WEF guidance on establishing effective climate governance provides a good starting point for companies to consider as part of their Better Business Reporting journey to proactively manage climate and other ESG risks and opportunities, and create long-term sustainable value.
How we can help
KPMG can provide bespoke services to help clients plan and implement a practical approach to build proactive climate governance and gain stakeholder support via quality climate disclosure. Our support covers the following areas:
- Board/Executive Training – Set the scene for climate governance
- Advisory on governance structure – Build the foundation for making decisions
- Identify risk and opportunity – Find out what should be addressed
- Climate risks analysis – Determine impact of climate risks
- TCFD maturity assessment – Evaluate and prepare for TCFD adoption
- Information and data quality – Assess current processes and data quality for climate reporting