Below is an excerpt from ISS-Corporate’s recently released article “Climate Risk Quantification: Three Things Corporates Need to Know”. The full article is available on ISS-Corporate’s resources page.
Over the past decade climate risk reporting has become a staple in corporate sustainability disclosures. Both investors and regulators are asking companies to show their exposure to climate risks, how they affect their business and the governance systems in place to manage those risks. With the European Sustainability Reporting Standards (ESRS) and later the IFRS Sustainability Disclosure Standards (IFRS SDS), the impetus to provide detailed information has increased.
The unpredictability of global climate policies and lack of data makes it challenging for companies to understand their risk exposure and prepare for reporting. As disclosures mature, there is an increasing expectation to provide quantitative disclosures, particularly on the financial effects arising from the identified risks.
In this article, we discuss what to consider when quantifying climate risks.
By:
Fredrik Lundin, Senior Sustainability Solutions Product Manager, ISS-Corporate
Amala Devi, Vice President, Sustainability Product, ISS-Corporate
