As concerns about climate change and its risks intensify, the Governance Institute has released a new guide, Climate Change Risk Disclosure: a practical guide to managing climate risk, to help entities navigate the maze of climate-related risk reporting.
Companies increasingly need to understand how climate change risks affect their businesses if they wish to remain competitive and maintain good relationships with stakeholders.
Governance Institute of Australia’s Ethics Index for 2019 found that nine in ten Australians wanted governments and organisations to take action on climate change.
But it’s not only consumers that worry about climate change. ‘The evidence on climate risk is compelling investors to reassess core assumptions about modern finance,’ says Larry Fink, CEO of BlackRock, the world's largest asset manager with US$7.4 trillion in assets under management.
The Reserve Bank of Australia has cautioned that climate change is exposing financial institutions and the financial system more broadly to risks. And, regulators such as the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission have identified climate change risk as a growing area of concern and are eyeing how organisations manage and disclose it.