Going Beyond Disclosures: Why It's Time To Rethink How We Consider And Respond To Climate Risks

Climate disclosures are in danger of ticking boxes while the earth system passes critical thresholds. To achieve climate resilience, organizations need to better understand the risks and realities.

Generic statements, significant underestimates of risk and a lack of detail on plans to meet targets are common characteristics of many climate disclosures currently produced globally, research by the Financial Reporting Council finds. We agree that many disclosure activities are not supporting organizations' ability to address and adapt to physical climate risks or develop management plans to navigate and accelerate the transition.

Organizations need to refocus on assessing climate risks more carefully and setting more realistic management plans. You can only do this by considering the total environmental and economic systems that determine the operating landscape. Only then can you take decisions that create more resilient business models and operations.