Climate-Related Disclosures and Risk Management: Standards and Leading Practices
The aim of this paper is to assist actuaries (and others) to understand the principles and leading practices for preparing climate-related disclosures, and how they can be used to inform risk management processes in relation to the impacts of climate change. Using their specific skills and their professional judgment, actuaries are well placed to help companies, investors, policymakers, and society to better understand the risks and opportunities involved and meet the disclosure standards and reporting requirements.
While climate-related disclosures should reflect a company’s own business and regulatory environment, the expectation is that in due course the various frameworks will become sufficiently standardized to facilitate comparisons across firms, industries, and countries.
Just as importantly, companies will be able to leverage these disclosures to structure their climate strategy and governance, demonstrate their resilience to climate-related risk and communicate in a transparent way how they contribute to building a more sustainable world.