Chris Thurston’s Post

While much has been discussed about the new Climate-Related Disclosures, the focus on NZ’s progress has often been high level process insights. This month our team delved deeper, and shared results of our systematic assessment of the first batch of documents submitted by NZ companies.   Detailed work by the team has given us quantitative and qualitative insights including, for example: 💡 87% of companies have not reported either current or anticipated financial impacts of climate change. 💡 Only 22% of companies reported the transition plan aspects of their strategy, including how their business model and strategy might change to address its climate-related risks and opportunities. Given that Transition Plans are a vital tool for investors and wider stakeholders to assess commitment and ability for the business model to remain relevant in a net zero carbon economy, many will be looking forward to seeing disclosures in this space in the next reporting period, 💡 Only 19% of companies chose to report all of their Scope 3 greenhouse gas emissions. With disclosure requirements widening in Y2, Directors will need to be aware of the need to actively advance the measurement of Scope 3 emissions. The upshot is that companies now have an opportunity leverage being first in the world out of the gate on climate related disclosures. Directors also have a commercial opportunity to advance business model innovation and resilience. I’m personally excited to be supporting this work. The second year of disclosures will build on the first, it's going to be a gamechanger. Yes it's big step up in assessing the financial impact of climate risk but crucially also opportunities! Our incredible team is here to support the journey of NZ companies. We also specialise in Scope 3 measurement, certification & reporting and are proud to be walking alongside internal teams in this space.   Link to the full article in comments 🙌 👉 Follow us at Lever Room

Going on the record about climate matters? Data transparency brings insights & comparison. Lever Room has identified some significant patterns in the world-leading climate data provided in NZ - it is an interesting read. We should expect more scrutiny like this, whether it is from journalists like Bernard Hickey, Ministry for the Environment | Manatū mō te Taiao or organisations like National Innovation Centre for Data in the UK. Thanks for sharing Rebecca Mills! FYI Andrew Schollum Emma Naji Stephen Clarke BA (Hons), PG Dip, MRIM Natasha Lewis Jennifer Hutcheon Devine Propulsion #dataethics #decisionsthatmatter #climatedata #mattersthatmatter #accesstoenvironmentaljustice #environmentaldata

Often the debate around credible climate action and corporate standards boils down to two sides: “for or against” carbon credits. The reality is—it’s not binary. Our CEO Carter Roberts sat down with Simon Mundy from the Financial Times to talk about the role of business in the global energy transition. And it really comes down to three things: market transformation, market integrity, and simpler processes.   Corporates can make their greatest contribution to solving the climate crisis by investing in and reducing emissions in their value chains. This helps build resilience and continuity for their businesses while providing a durable transformation of the global economy. Simultaneously, we need to build and grow a more credible voluntary carbon market with high integrity accounting. That includes: 📝Evidence of impact 🌳Projects that benefit climate, nature and local communities 🪙A fair carbon price that reflects the full costs of a high-quality intervention   While there is a lot of focus on carbon markets, most companies are just looking for simpler processes, easier target-setting methods, and practical, cost-effective measures. Together, these mechanisms allow companies to focus on the highest impact and most material emissions categories and invest in solutions – improvements that the Science Based Targets initiative (SBTi) and the Greenhouse Gas Protocol (GHGP) should support. Thanks to FT Live for hosting a great conversation alongside David Blood, Mandi McReynolds, and Karen Pflug.

👍 Delighted to share positive news for Climate Action 100+ with the addition of 90 new investor joiners globally since June 2023. 🌎 📰 Dominic Webb covers the highlights https://lnkd.in/egi372DW 📊 🏭This comes as we launch this year's Net Zero Company Benchmark assessments which show there's much more to do, but: - 65% of companies have reduced their emissions intensity in the past year. - Over 90% of all companies assessed have disclosed evidence of board-level oversight of the management of climate change risks. - 88% of companies are publicly committed to implement the recommendations of the Task Force on Climate related Financial Disclosures (TCFD) OR International Sustainability Standards Board (ISSB) Standards. More info here: Press release - https://lnkd.in/ei2ETbP8 Summary of results - https://lnkd.in/egXSXN6D Great work once again from a big team including Natasha Rutherford, Kerri-Anne H., Reginald Zimmerman, MPP, Joseph Cockerline, Fergus Pitt, Tammie K. and many more! #climate #climatechange #investors

Climate-related disclosures are made on a fund-by-fund basis to help you, our investors, understand the impact of climate change on the future performance of your investments. 🌿 These new reporting requirements are intended to provide you with greater visibility of the risks of climate change on your funds, both physical risks, such as the impact of flooding, wildfires and higher temperatures on the businesses your fund invests in, as well as the associated risks to the economy in a low carbon future (sometimes called “transitional risks”) that can impact financial markets. Mandatory climate-related reporting will also help New Zealand meet its international obligations to achieve the target of net zero emissions by 2050. It will: - Ensure the effects of climate change are routinely considered in business, investment, lending and insurance underwriting decisions - Help climate reporting organisations better show their responsibility and forward planning in considering climate issues -Lead to more efficient allocation of capital, and help smooth the transition to a more sustainable, low emissions economy. https://lnkd.in/gu5VXzn3

Time Magazine have never been shy of controversy. No, I'm not talking about Person of the Year. Well, maybe we are. The implications of the incoming government in the US and their policies are being noticed globally, if not felt. People have asked me, why bother with climate reporting? Does climate reporting have any positive impact? Why do we spend so much effort on reporting, why not spend it on fixing the problem? Whether there is legislated mandatory reporting or not, I think the momentum for voluntary reporting driven by numerous stakeholders has already taken root. Investors want to know their funds are invested ethically and environmentally sustainably as well as in a financially prudent way. Businesses also recognise that in the long term, sustainability and efficiency in energy use makes business sense. In that sense, mandatory reporting isn't required. However, like much regulation, it levels the playing field for all businesses, and forces the hand of laggards. Further, reporting generally allows decision makers to focus their efforts towards areas of greatest impact. No reporting, even if it's internal to businesses only, no idea where to start. Whether one believes in anthropogenic climate change or not, one thing is clear, extreme weather and pollution are increasing and having impacts on business finances. These risks need to be factored in operational and investment decisions. Need help preparing ESG and sustainability reports along with the data governance and management required? Say hello@tutxi.com, I'm here to help. #ESG #ClimateReporting #CarbonAccounting #Sustainability #DataGovernance #DataManagement https://lnkd.in/gerk2eYR

What do the #SEC’s new #climate disclosure rules mean for companies and investors, and what percentage of their Scope 1 and 2 emissions are U.S.-listed firms in each sector disclosing currently? #MSCIResearch takes a look. http://ms.spr.ly/6044cdCxY

Interesting sectorial analysis by MSCI Inc. for the most impacted companies in the US by the new SEC climate-related disclosure rule: * communication services, healthcare and financials are well-below the average (45%) * more energy-intensive sectors (utilities, industrials, energy and materials) tend to already disclose their carbon footprint.

Our take on the ASIC speech on climate disclosures. Main takeaways from the speech. * This is here and not going away. * 6000 companies immediately in scope. * This is just the beginning so get started now * Build Capacity. * Next comes biodiversity The big problems that this creates. 1. Capacity 2. Budget 3. However Meaningful Outcomes 4. Creating real business value from the exercise. Clima has you covered with its solution designed to tackle these challenges with confidence. There is no such thing as a stupid question but there is such a thing as a stupid answer. Put control of your net zero plans back in your hands with a Clima partnership today. Your customers care so you should too. With the most compelling end-to-end solutions in the net-zero space we have partnered with some of Australia's most respected companies to deliver a second-to-none offering across the transition supply chain. Consistency of outstanding outcomes. https://lnkd.in/gvUJvxRp

Here’s a good item to read from Harald Walkate about this excellent compilation: "I’m pleased to report that the series of climate blogs that I guest edited for European Corporate Governance Institute (ECGI) in ’23 has now been bundled in an easily accessible pdf. A good reason for me to reread these contributions and my own Editors Note. However, this reading suggests that much of the daily practice or thinking about climate change in corporate and investor circles is (still) out of-sync with the conclusions many blogs reach, as I conclude in my Editors Note. Below are some of the questions addressed in the series, with brief answers. I hope you take the time to read the full series and grapple with the longer answers. [And if you’d like to have a more in-depth discussion about the implications for companies or investors, you know where to find me.] 1. What can we expect from climate-related disclosures? (Our expectations should be modest) 2. Are disclosure-based approaches the most effective way to drive change or are they a distraction from alternative solutions? (Probably not, and quite possibly) 3. Is the best way to engage with energy companies to insist they ‘pivot’ (to renewables) or ‘run down’? (Often it will be the latter) 4. Are scope 3 emissions a good risk indicator? Does measuring emissions result in reducing them? (Both: no)." #esg #climate https://lnkd.in/es5iyiYY