With the closing of COP27, it’s been a year since COP26 in Glasgow, where Rishi Sunak announced that the UK will be the first country to require all financial institutions and listed companies to set out plans on how they will transition to net-zero from 2023.
In practice, this has translated into an HMT roadmap for mandatory Climate risk reporting aligned to the Taskforce for Climate related Financial Disclosures (TCFD) standards. In a change to FCA rules, from 6 April 2022 more than 1,300 of the largest UK-registered companies, LLP’s and financial institutions now have to disclose climate-related financial information on a mandatory baseline line with the TCFD. The UK is the first G20 country to enforce this.
There is a lot to digest with these, so where do insurers and insurance organisations start?!
For those firms wanting to know where to focus their efforts in TCFD reporting, and what’s coming over the hill, there are 3 key areas for attention that include:
Credible roadmap and target setting
Scope 3 analysis
Identifying and improving data sources
Our insurance expert Chantal Constable discusses these areas and how to get ahead in this paper.