Insights
22 March 2022

Understanding asset risk for UK climate-related financial disclosure

Laura Mazzola

By Laura Mazzola

Understanding asset risk for UK climate-related financial disclosure

Download Cervest’s free ebook to learn more about discovering and analyzing climate-related asset risk and complying with the UK’s incoming disclosure requirements.

On 6th April, the UK’s first regulations on climate-related financial disclosures will come into effect, requiring more than 1,300 UK-registered businesses to publish detailed information on risks and opportunities associated with climate change. Refined during a three-month consultation process, the requirements are based on recommendations created by the Task Force on Climate-Related Financial Disclosures (TCFD), an industry body established by the Financial Stability Board (FSB) to “improve and increase reporting of climate-related financial information.”

Under the framework, which will be fully mandatory across the UK economy by 2025, companies must produce a range of information about how they track and manage the potential impacts of our changing environment. Firms must describe the risks and opportunities considered financially material to their business in different time periods, and analyze the resilience of their strategies across multiple climate-related scenarios. 

Learn more about analyzing your asset risk in line with the UK’s climate-related financial disclosure requirements with Cervest’s free ebook.

Understanding asset risk

To accurately report on the past and future impacts of climate change, companies need to consider climate-related risks at the asset level. This includes assets they own (internal) and 3rd party assets their business depends on (external). According to Cervest’s 2021 Climate Intelligence Outlook, nearly 90% of companies have already had at least one physical asset affected by extreme weather like storms. As climate change accelerates, climate-related risks in the form of extreme weather events and slower-onset hazards like rising sea levels will only intensify. 

The challenge is that a large number of companies have historically struggled to understand their climate-related asset risks, especially when it comes to looking at multiple time frames and scenarios. Cervest’s Climate-related financial disclosure report unearthed the roots of this problem: a significant proportion of businesses lack the tools and understanding to quantify their climate risk in order to make financial disclosures.

Navigate disclosures with Cervest’s free ebook

To help companies close this knowledge gap, understand their climate-related asset risks, and improve the quality of their voluntary or mandatory climate-related financial disclosures, Cervest has published a detailed ebook covering the following important topics:

  • Understanding UK regulations from an asset perspective

  • Analyzing climate-related asset risks across different climate-related scenarios

  • The benefits of financial disclosures beyond compliance

  • How to incorporate Climate Intelligence (CI) insights into workflows beyond disclosure reporting

Whether your company is looking to learn more about the UK’s TCFD-aligned regulations, navigate new government requirements, or enhance your voluntary Environmental, Social and Governance (ESG) reporting with science-backed insights, Cervest’s free ebook can add substantial value to your disclosure processes.

Download the free ebook here.

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