How do you disclose and manage climate change risks?

3 What are the main frameworks and standards for climate disclosure?

Organizations can use or refer to various frameworks and standards for climate disclosure, depending on their sector, size, scope, and objectives. For example, the Task Force on Climate-related Financial Disclosures (TCFD) provides recommendations for consistent and comparable disclosure of climate-related financial risks and opportunities. The Carbon Disclosure Project (CDP) is a non-profit organization that runs a global disclosure system for environmental information, including climate change. The Global Reporting Initiative (GRI) is an international standard for sustainability reporting that covers economic, environmental, social, and governance topics. Lastly, the Sustainability Accounting Standards Board (SASB) develops and maintains industry-specific standards for sustainability disclosure relevant to investors and financial markets. All of these frameworks can help organizations measure and communicate their impacts and performance on the issues that matter to them and their stakeholders.

4 How to start with climate disclosure?

Organizations need to take several key steps to begin climate disclosure. Firstly, they should define the scope and purpose of the disclosure, including which framework or standard they want to use or align with, and how they want to communicate their disclosure. Secondly, organizations should identify and evaluate the potential impacts of climate change on their business, both in terms of physical risks and transition risks. Thirdly, they should define and assign roles and responsibilities for climate disclosure, and develop a strategy for addressing and managing their climate risks and opportunities. Fourthly, organizations need to collect and analyze relevant data for their disclosure, ensuring accuracy, consistency, and comparability. Lastly, they should report and communicate their disclosure in a transparent, credible, and engaging way. They should also solicit feedback from stakeholders and use the insights to improve their performance.

5 What are the main challenges and best practices for climate disclosure?

Climate disclosure can pose some challenges and barriers for organizations, such as a lack of data availability, quality, and consistency; a lack of skills, knowledge, and resources; and a lack of alignment or integration. To overcome these obstacles and enhance their climate disclosure, organizations should adopt a stakeholder-centric approach by identifying and engaging with their key stakeholders. They should also pursue continuous improvement by monitoring and evaluating their climate disclosure and performance. Additionally, organizations should collaborate with other organizations to share best practices and explore innovative ways of disclosing and managing climate risks.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?