CSRD requires companies to share how they are assessing their climate-related risks and how these risks could affect financial performance.<\/p>\n
It will be a key area of scrutiny for the financial market and insurers, as there has been a sevenfold increase in reported losses from climate disasters since the 1970s.<\/p>\n
Resent research has found that the economic damage brought by climate change is \u201csix times worse than previously thought, with global heating set to shrink wealth at a rate consistent with the level of financial losses of a continuing permanent war\u201d.<\/p>\n
Rising temperatures, heavier rainfall and more frequent and intense extreme weather are projected to cause $38tn of destruction each year by mid-century.<\/p>\n
In improving disclosures, critical information will be available for boards, management, investors and stakeholders, informing strategy development, financial planning and allocation of capital.<\/p>\n
It can also provide an opportunity to attract investors by demonstrating climate-related opportunities and the resilience of the company.<\/p>\n
Under CSRD the company will have to reply Yes or No to these two questions (ESRS E1 AR 11):<\/p>\n
\u2b55The company has screened whether assets and business activities may be exposed to climate-related hazards.<\/p>\n
\u2b55 The company has assessed the extent to which assets and business activities may be exposed and are sensitive to identified climate-related hazards.<\/p>\n
In addition, the company will need to learn to disclose (ESRS E1-9):<\/p>\n
Extreme weather is causing loss of property, destruction of assets and business interruptions, with financial effects hitting our businesses.<\/p>\n
To get your climate-related physical risks under control:<\/p>\n
There are easy-to-use tools and science-based data available to help you assess, manage and disclose on your climate-related physical risk exposure.<\/p>\n
You are welcome to contact us: Book a demo<\/a><\/p>\n Sources:<\/p>\n