PwC, the international consulting firm, just released their 24th Annual Global Survey of CEOs. With regard to Canada’s results, they state, “Too few Canadian CEOs, especially those from private companies, are concerned about climate change. Organizations of all sizes must build ESG into their investment and risk-mitigation strategies to sustain long-term growth.”
According to PwC, two thirds of Canada’s CEOs are not factoring climate into their companies’ risk assessments. Most likely, the barrier is a lack of understanding of how to proceed, not a lack of commitment to climate action.
David Arkell, President and CEO of 360 Energy notes that, “Many CEOs erroneously believe their companies cannot control energy use or carbon emissions. They also don’t see how climate action is easily incorporated into corporate strategy”. Where do they begin? How do they ‘upskill’ their corporate capabilities to take on this challenge?”.
Fortunately, there is ample help available.
The Task Force on Climate-Related Financial Disclosures (TCFD) provides a series of practical resources for CEOs on how to best disclose climate-related risks and opportunities into the marketplace. All companies, regardless of economic sector, can implement the TCFD recommendations. The TCFD emphasis is on integrating climate into a company’s existing processes, not on creating new processes.
The end goal of climate-related disclosure is for companies to make better informed decisions.
John Pooley, Vice President, Program Development at 360 Energy provides a very helpful overview of the TCFD reporting requirements in this webinar.
By adopting the TFCD framework, companies demonstrate to lenders and investors that they are appropriately assessing and managing climate-related risks and opportunities. This can enable easier access to capital.
Climate-related financial disclosure builds broader awareness inside the reporting company. The outcome is better risk management and more informed strategic planning.
When climate-related risks and opportunities are material to a company, the CEO and CFO will more effectively comply with existing financial filing requirements.
All these benefits support and sustain a more profitable business organization.
Since the first TCFD report in 2017, growing numbers of companies are implementing climate-related financial disclosures into their annual reports as well as their Environment, Social and
Governance (ESG) goals and regulatory filings. Investors with responsibility for $175 Trillion in financial assets now support the TCFD approach.
Momentum is building for companies to assess and disclose their exposure to climate-related risks. Future CEO surveys will likely have much different results from the ones reported this year.
For over 25 years, 360 Energy has provided independent and expert assistance to any company that wants to improve energy, carbon and utility management. Talk to us about how we can help you prepare your company’s transition to a lower carbon future.