17 November 2021
by Ding Li, Agathe Kuhn and Olivia O’Brien
The countries least responsible for the climate crisis have to a great degree been hit hardest by its worsening impacts. This is especially the case for the Least Developed Countries. However, 2021 was another historic year for climate events, with the Western world in particular experiencing some of its hardest hitting disasters thus far, from the European floods in July, which killed over 200 individuals, to wildfires and scorching heatwaves in the typically cooler climates of Siberia and Canada. In parallel to these events, we have also seen some of the most promising commitments to climate action thus far. Despite the disappointing outcomes of the recent G20 Summit and COP26 – which did not deliver the urgent pledges needed to curb global warming at the pace required to maintain the 1.5 goal – some significant bright spots have emerged.
More than ever, the global spotlight is on the UK government who, as the host of COP26, is making a series of announcements to lead by example and set the country on track for meeting its net-zero commitment by 2050. In line with these efforts, are the UK government’s announcement of its formal plans to make disclosure of climate-related risks – in line with the Taskforce on Climate-related Financial Disclosure (TCFD) requirements – mandatory for large businesses and financial institutions.
What does this announcement mean?
Beginning in April 2022, reporting of climate-related financial information will become mandatory for UK traded companies, banks, insurers, as well as private companies with over 500 employees and £500 million in turnover. With this announcement, the UK will become the first G20 country to enshrine TCFD reporting in law. This commitment will hopefully set in motion the driving force that is needed for other governments to take similar action.
Longevity Partners welcomes this development, as we know that understanding climate-related risks is key to developing resilient business models and investment strategies. Indeed, the TCFD recommendations are currently the only globally available guidelines relating to disclosure of climate related risks and opportunities. Governmental support will ensure their adoption by a wide range of companies, thereby increasing climate transparency on the financial market.
TCFD reporting, risk exposure mapping and mitigation strategies are services that Longevity Partners offer to its clients. Get in touch today so we can help you prepare for the upcoming implementation of this legislation. Combining our expertise in climate risk management, policy advisory, ESG strategy and implementation, we offer a full suite of services to support clients in mitigating climate risk, optimising building performance and developing net-zero carbon roadmaps.