Climate Risk
Climate Risk
Scientists now state that it is extremely likely (95% confidence level) that the earth’s climate is changing as a result of human-related emissions of greenhouse gases (IPCC¹).
Climate change is exposing organisations to both physical risks (such as more frequent and more intense storms) and transition risks (such as legislative and regulatory measures to support decarbonisation of the economy).
These risks are expected to increase considerably in the coming years and organisations need to plan ahead.
PathLight can:
conduct a gap analysis between your organisation’s current approach to climate risk and the External Reporting Board’s (XRB) reporting requirements - see below
develop a roadmap to address identified gaps on a reasonable timeline
support your organisation as you implement the workstreams to address those gaps
support your organisation as you report under the XRB’s reporting standard for the first time and beyond
provide ongoing advice to help your organisation stay ahead of the curve in this fast-moving area
PathLight’s services in this area focus on the XRB’s mandatory Climate-related disclosure framework.
The XRB’s disclosure framework is based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), which has now disbanded following the issue of Climate and Sustainability Standards by the International Sustainability Standards Board (ISSB).
The ISSB issued IFRS S2 Climate-related Disclosures in June 2023.
This approach covers the risks and opportunities for an organisation as a result of the changing climate and how the organisation plans to adapt to and mitigate those risks and benefit from the opportunities.
The disclosure framework is based on the four pillars of Governance, Strategy, Risk Management and Metrics & Targets.
These requirements are mandatory for most NZX listed companies and financial institutions, for financial years starting after 31 December 2022 and earlier for many Crown-owned entities.
Whilst the XRB’s Climate related disclosure framework is not currently intended to apply to other organisations in New Zealand, the related climate risks are real for all entities.
PathLight is happy to support any organisation that wants to understand and be better prepared for climate risk, and be part of the solution on climate change.
the Intergovernmental Panel on Climate Change (IPCC) is the United Nations body for assessing the science related to climate change