The temperature is rising
The pressure is on for firms across the globe. Litigation is on the rise, consumer shopping trends are migrating to favour sustainable brands and investor pressure is squeezing down from the top. According to a recent Gartner study, 85 per cent of investors consider ESG factors in their investment decisions, making climate risk a top priority for businesses.
However, the EY study threw up not only that 78 per cent of FTSE 100 companies have published partially developed plans that fail to address strategy and execution but, further, that 17 per cent are stagnating in the early stages of developing their net-zero plans [Ref.1].
This leaves organisations vulnerable. In a world of rapidly evolving policy change, governments join a growing audience of NGOs, community-action groups, consumers and investors in demanding more.
No cooling-off period
A credible net-zero plan relies on a science-led approach, with a strategy underpinned by trusted data. For those organisations at the beginning of their journey, and even those a little further down the road, disclosure frameworks can be the starting point to developing that credible net-zero plan.
The Task Force on Climate-related Financial Disclosure (TCFD) is one such framework that can prepare businesses with a foundation for developing a net-zero strategy. But for this foundation to stand, it also requires the rigour of a science-led approach.
Getting the fundamentals right will remain essential, where frameworks like the TCFD have been put in place to provide support and drive companies towards meeting not only these disclosure requirements but also the net-zero demands from legislation like the UK government’s Transition Plan Taskforce.
[1] https://www.ey.com/en_uk/news/2023/04/only-five-percentage-of-ftse-100-have-published-net-zero-plans
Download the Risilience report: Why a science-led TCFD report is good for business, or get in touch to learn how we can help you develop and action a credible net-zero plan.