FR Climate Science
Overview
If you cannot recognise the acronyms above, this section will help you to better understand the climate disclosure landscape and guide you through the basics of climate disclosure requirements.
Why now?
In recent years, the duties of board directors have evolved significantly in relation to climate action due to an increased understanding of the financial risks associated with climate change. As a board director, you are now expected, and in many jurisdictions legally mandated, to ensure that your organisation has established appropriate mechanisms and resources to identify and assess significant climate opportunities and risks¹. It is also seen as your duty to ensure that these issues are properly addressed and disclosed.
It is important for board directors to understand that effective climate governance goes beyond focusing solely on risks. By adopting a narrow focus, you might overlook potentially significant opportunities that good climate governance can bring to your organisation.
By following these guiding principles for effective climate governance, you will also be fulfilling your duties as a board director and helping to ensure that the organisation has a robust climate strategy and delivery plan which is not deemed as greenwashing.
Broader context
The principles and guidance build on existing corporate governance frameworks, such as the International Corporate Governance Network’s (ICGN) Global Governance Principles, as well as other climate risk and resilience guidelines, such as the recommendations of the Financial Stability Board’s Task Force on Climate- Related Financial Disclosures (TCFD).
The drafting process involved extensive consultation with over 50 executive and non-executive board directors, as well as important organisational decision-makers, including chief executives, and financial and risk officers. Input was also gained from experts from professional and not-for-profit organisations.
How to take action
Invite your organisation’s board to reflect on the following questions:
- Is our organisation taking action to phase out fossil fuels use, both in its operations and across the value chain?
- Does our organisation measure its full carbon footprint across its operations and across the value chain?
- Has our organisation set science-based targets, both long-term and in the interim, to reduce its carbon emissions?
Resouces
- Read this summary on the latest climate science is provided by the IPCC in it’s Synthesis Report of the Sixth Assessment Report.
- More information on climate tipping points in ‘How 16 Tipping Points Could Push Our Entire Planet Into Crisis’ and ‘Scientist Johan Rockström Explains Earth's Climate Tipping Points’
More information on positive tipping points in ‘The Breakthrough Effect’