‘Net Zero is now the main goal but we must brace for a tidal wave of regulation’, Ali Cambray and Amy Pickering explained at the IoD Guernsey November breakfast.
This month’s breakfast, sponsored by Butterfield, covered the topic of climate change governance and regulation coinciding with the COP26 summit.
Ali and Amy, from PwC Channel Islands, discussed ESG’s relationship between business and the environment. Ali continued to emphasise a rapid need for change, reporting that investors are now calling for complete clarity in ESG reporting. Forty-nine percent stated they are willing to divest from companies that aren’t taking sufficient action (PwC 2021 Global Investor Survey).
Throughout their presentation, Ali and Amy highlighted this decade as a critical moment for Directors to influence change - ‘there is nowhere else left to hide.’ Net zero is the ultimate goal to making a global difference, whilst carbon neutrality is merely a stop-gap until full conversion
Both speakers raised concerns on physical and transitional risks that may be a result due to the changes required. Less than 20% of FTSE 350 companies have already carried out or outlined a training plan for board members in relation to climate change reporting.
Amy and Ali explained the Task Force on Climate-related Financial Disclosures (TCFD) recommendations and how the framework has emerged as the new global standard. In the recommendations it offers four key expectations for businesses to follow including:
- Governance - Disclose the extent of board and management’s oversight of climate-related risks and opportunities.
- Strategy - Disclose the actual & potential impacts of climate-related risks & opportunities on the organisation’s businesses, strategy, and financial planning where such information is material.
- Risk Management - Disclose how the organisation identifies, assesses, and manages climate-related risks.
- Metrics & Targets - Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.
Ali wrapped up the presentation saying ‘it’s all about the journey’ with both speakers underlining that the fight against climate change is not simply a tick box reporting exercise.
The Guernsey branch of IoD will continue its discussion of ongoing topics every month in its breakfast convention. You can review Ali and Amy's slides from the presentation here.