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How has sustainable finance regulation evolved in the past decade? In this episode, Mark Manning, Visiting Senior Fellow at the London School of Economics (LSE), explains how Mark Carney's seminal 2015 speech and the TCFD's 2017 recommendations paved the way for the development of sustainability related disclosure standards. Mark also discusses what makes sustainable finance regulation different, how regulators are engaging with climate transition planning and what's in store for sustainable finance regulation in the next five years. Chapters (00:00:00) - Introduction(00:01:50) - How sustainable finance regulation has shifted since 2015(00:09:11) - Why climate finance requires a different regulatory approach(00:13:05) - Collaboration and the experimental side of regulation(00:16:33) - Climate transition planning(00:25:10) - Geopolitics and the future of sustainable finance regulation
In this special episode of Sustainable Edge, your host Joachim Nahem, Executive Chairman at Position Green, interviews David Carlin, founder of Cambium Global Solutions and head of Climate Risk and TCFD for UNEP FI. In this episode David Carlin brings his wealth of expertise to explore the multifaceted impacts of climate risk and the urgency for action.This episode is a must-listen for anyone invested in understanding the intersections of climate science, business resilience, and sustainable finance. Learn about: Understanding climate risk: The diversity of physical and transition risks, from water scarcity to the energy transition, and how they cascade across industries and societies. Scenarios and surprises: Insights into unexpected developments, such as geopolitical shifts and non-linear climate dynamics, that reshape strategies. The future of commitments: A candid discussion about the limitations and potential of net-zero pledges, emphasizing the importance of credible, actionable plans over hollow promises. Global perspectives: How countries like Vietnam and India are balancing development and sustainability, and why emerging markets are crucial to solving the climate challenge. About David Carlin David Carlin is a globally recognized authority on climate risk and ESG integration. As founder of Cambium Global Solutions and head of Climate Risk and TCFD at UNEP FI, he has worked with over 100 financial institutions worldwide. A thought leader on sustainable finance, David champions the importance of credible climate commitments and actionable transition plans. His work spans advising governments, corporates, and financial institutions, shaping the future of climate governance. Follow us on LinkedIn: https://www.linkedin.com/company/position-green
Private markets are uniquely positioned to unlock the value of nature, which may be one of the world's most underappreciated assets. On this week's episode, BI's senior ESG associate Melanie Rua is joined by Anne Valentine Andrews, global head of private markets at Manulife IM, and Brian Kernohan, the firm's chief sustainability officer, to discuss how nature and climate can drive investment strategies. They explore frameworks such as TCFD and TNFD, the intricacies of carbon credits and biodiversity markets and the future of portfolio diversification. With over $16 billion in assets under management across agriculture and timberland, Manulife stands as the largest manager of natural capital assets. This episode was recorded on Oct. 18. For more insights, register for BI ESG's Dec. 11 conference here: https://bbgevent.app/esg-investment/See omnystudio.com/listener for privacy information.
During October, we are focusing on climate change and climate change policies. While I am not a single-issue voter, aligning who I vote for, no matter the office, with my values is important. As someone who cares deeply about the planet, climate policies greatly influence how I choose to cast my vote. So, this month, we will be hearing from experts nationwide who specialize in different aspects of climate change action and policies. Be sure to subscribe to our weekly newsletter to stay updated on the latest climate discussion each week this month. In episode 152 of the Outdoor Minimalist podcast, we kick off our climate month by looking at the intersection of climate policy and everyday life. We discuss why strong climate policies are essential for the future of the United States, touching on their impact on both the environment and the economy. To help lead this timely discussion, I am excited to introduce Kate Gaertner. Kate has 25 years of corporate and entrepreneurial experience in corporate sustainability. As the founder and CEO of TripleWin Advisory LLC, she specializes in GHG inventories, TCFD analyses, supply chain mapping, and developing company sustainability roadmaps. Kate has held roles in digital marketing at XM Satellite Radio and Time Inc., consulted for Fortune 500 companies, founded a sustainable activewear brand, and served as an adjunct professor at the Fashion Institute of Technology. She is the Board Chair of XXcelerate, supporting women-led businesses, and advises the Loopt Foundation on zero waste goals in manufacturing. A leading sustainability expert, Kate is a sought-after speaker and opinion writer featured in top publications. She hosts a monthly sustainability column for Portland's Star-News and is the author of "Planting a Seed: 3 Simple Steps to Sustainable Living." Kate holds a Master's in Sustainable Management, an MBA from Wharton, and a degree from Dartmouth College. INSTAGRAM: https://www.instagram.com/outdoor.minimalist.book/ WEBSITE: https://www.theoutdoorminimalist.com/ YOUTUBE: https://www.youtube.com/@theoutdoorminimalist ORDER THE BOOK: https://www.theoutdoorminimalist.com/book LISTENER SURVEY: https://forms.gle/jd8UCN2LL3AQst976 ----------------- Kate Gaertner Website: https://kategaertner.com/ Book: https://kategaertner.com/book LinkedIn: https://www.linkedin.com/in/kate-gaertner-935478/ Instagram: https://www.instagram.com/kategaertner/ Facebook: https://www.facebook.com/kate.gaertner/ ----------------- Episode Resources Clean Air Act: https://www.epa.gov/laws-regulations/summary-clean-air-act Clean Water Act: https://www.epa.gov/laws-regulations/summary-clean-water-act Silent Spring Book: https://www.nrdc.org/stories/story-silent-spring Climate Reality Project: https://www.climaterealityproject.org/ 350.org Environmental Entrepreneurs: https://e2.org/ vote411.org/ --- Support this podcast: https://podcasters.spotify.com/pod/show/outdoor-minimalist/support
My guest on today's program is Marie Clara BUELLINGEN, Head of Sustainable Finance Americas for Societe Generale Corporate & Investment Banking, one of the largest foreign banking organizations in North America. She is charged with solving the challenges of making public and private capital work together to scale clean energy solutions in the required timelines. The Societe Generale sustainable finance team develops ESG strategies and programs that meet with key stakeholder expectations and best practices such as TCFD, SASB, GRI, UNPRI and the CDP. We talk about approaches to clean energy technology solutions that she has seen work across multiple sectors of the global economy.
Text us your thoughts on this episodeThis week, host Heather Horn is joined by a special guest from the International Sustainability Standards Board (ISSB). Vice Chair, Sue Lloyd gives us an inside look into the ISSB's workplan, new projects, and new strategic relationships. She also shares how the ISSB is supporting implementation of the standards.In this episode, they discuss:4:15 – Insights from the adoption of ISSB standards around the world9:20 – Variability of sustainability reporting and interoperability guidance19:08 – Challenges reporting under multiple frameworks and ISSB partnerships to address them25:31 – Responsibilities to report under other frameworks, such as California SB 261 (based on TCFD)29:41 – Working to address investor needs and concerns31:35 – Aligning ISSB reporting and sector standards35:10 – How the ISSB is supporting implementation38:40 – Advice for companies navigating the evolving sustainability reporting landscapeWant to hear more about the ISSB? Listen to our previous podcast discussing the ISSB standards and interoperability guidance. Also, as referenced in the podcast, check out the ISSB's Webcast: Overview of ESRS-ISSB Standards Interoperability Guidance or visit the IFRS Sustainability knowledge hub.Sue Lloyd is the Vice Chair of the ISSB and played a leading role in its establishment. Previously, she served as a member and Vice Chair of the International Accounting Standards Board (IASB) and as Chair of the IFRS Interpretations Committee. Heather Horn is the PwC National Office Sustainability & Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC's global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC's quarterly webcast series.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.
In this special episode, hear from Tony Rooke, Executive Director at Howden Group Holdings and Beth Gould Creller, GARP's Sustainability & Climate Risk Program Lead, as they discuss the recent improvements to the SCR's syllabus and learning experience. Long-time listeners of the podcast will have noticed that we often mention GARP's Sustainability & Climate Risk (SCR) Certificate. It's a program that GARP launched in 2020, providing all the foundational knowledge you need to become a climate risk leader within your own firm. This episode is a special one, as we bring you a conversation between Beth Gould Creller, who heads up GARP's SCR team, and Tony Rooke, who alongside his role at Howden, is a member of the SCR Advisory Committee and long-time supporter of the program. You'll learn about: The latest update to the SCR Curriculum, including new topics like nature risk and transition plans; The enhanced e-learning platform, including practical, hands-on modules; And testimonials from candidates on how the certificate has advanced their skills and careers. The SCR certificate is not only an excellent opportunity to boost your knowledge, but it also connects you with a global community of climate risk experts, fostering collaboration and innovation. Register before 31st July to save USD $100. Follow this link to find out more: https://www.garp.org/scr For more information on climate risk, visit GARP's Global Sustainability and Climate Risk Resource Center: https://www.garp.org/sustainability-climate If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: climateriskpodcast@garp.com Speaker's Bio(s) Tony Rooke, Executive Director and Head of Transition Advisory, Howden Group Holdings Tony is Executive Director in the Climate Risk and Resilience team at Howden, and head of climate transition advisory. He helps organisations plan and achieve their climate goals, to identify and manage climate risks, and then optimise returns from their transition investments. Tony has over 25 years global experience in strategy advisory, risk management, disclosure and programme delivery, with over 18 years as a leader and expert in climate change, environment and sustainability issues affecting businesses and financial institutions. Prior to Howden, Tony was Head of Transition Finance and Transition Planning at the Glasgow Financial Alliance for Net Zero (GFANZ), Senior Director for Transition Risk at WTW, and Global Technical Director for the Carbon Disclosure Project (CDP), the world's largest environmental disclosure platform. He has contributed to regulatory, policy and industry work including transition planning and transition finance standards (the UK's Transition Planning Taskforce and GFANZ), the reporting standards (EU EFRAG, CDSB, CDP, TCFD), and strategic use of models, pathways and scenarios (International Energy Agency (IEA), NGFS, MPP, CFRF, GFANZ). Tony is a member of GARP and on Sustainability and Climate Risk (SCR) certification advisory committee. He is additionally a fellow of both the Institute of Environmental Management and Assessment (IEMA) and the Royal Society of Arts, Commerce and Manufacture (RSA). Beth Gould Creller, Sustainability & Climate Risk Program Lead, GARP Beth manages GARP's Sustainability and Climate Risk Program. Prior to joining GARP, she was a risk professional in the upstream oil and gas industry. Working across multiple continents, her energy career spanned enterprise risk management, internal audit, business controls, supply chain process improvement, and governance.
Text us your thoughts on this episodeIn this podcast, host Heather Horn sits down with Katie Woods, a senior director in PwC's Global Corporate Reporting Services group, to discuss the recent activities of the International Sustainability Standards Board (ISSB). They discuss the standards issued by the ISSB to date, recent decisions reached by the board regarding future standard setting activities, updates on jurisdictional activity, and more.In this episode, we discuss:2:16 - Refresher on the issued IFRS® Sustainability Disclosure Standards (SDS), as well as the Board's consultation on agenda priorities8:43 - Sustainability reporting in the broader context of global issues, including biodiversity and human capital13:06 - The new interoperability guidance from the ISSB and EFRAG related to climate disclosures19:28 - Updates on jurisdictions looking to adopt IFRS SDS23:47 - The ISSB's publication of the IFRS SDS digital taxonomy25:14 - The significance of the TCFD framework coming under the umbrella of the IFRS Foundation26:53 - Highlights and areas of focus related to the ISSB's future activitiesLooking for the latest developments in sustainability reporting? Follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to stay in the loop for the latest thought leadership on sustainability standards. Katie Woods is a senior director in PwC's Global Corporate Reporting Services - sustainability group advising on ESG and international accounting standards. Katie specializes in the new and emerging ESG reporting frameworks working across the PwC network. She has over 30 years of experience working with a broad range of companies. Katie speaks regularly on a range of ESG and accounting topics.Heather Horn is the PwC National Office Sustainability & Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC's global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC's accounting and reporting weekly podcast and quarterly webcast series.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.
This week: – The interoperability guidance released by ESRS and ISSB standards, aiming to streamline reporting efforts across different sustainability reporting frameworks. – The release of the new CDP's 2024 reporting questionnaire, highlighting its alignment with various reporting standards and frameworks such as TCFD, TNFD, SEC's climate disclosure rule, and EU's ESRS, along with the support provided by Sustained Life as an accredited solution provider.
Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society. Justin Smulison interviews returning guest Jana Utter. Jana is the 2022 Risk Management Honor Roll inductee and a former RIMS SERMC Chair. Jana remains active on RIMS committees. On May 6 at 2:45 pm, she will co-host a RISKWORLD session, Sustainability Reporting: Making ERM Transparent: Environmental, Social and Governance in ROOM 25AB. The SEC is in the news with final and proposed Climate Disclosure Rules announced. Jana shares her knowledge, experience, and risk philosophy, a cluster of acronyms, and why ERM needs to connect more fully with ESG. Jana will be co-hosting a session on the ESG track with Bob Wirth at RISKWORLD 2024. Listen in to learn more about emerging ESG risk reporting and disclosure. Key Takeaways: [:01] About RIMS and RIMScast. [:14] Public registration for RISKWORLD 2024 is now open. Explore infinite opportunities with RIMS from May 5th through May 8th, 2024, in San Diego, California. Register at RIMS.org/RISKWORLD. [:31] About today's episode of RIMScast. My friend Jana Utter returns to discuss ERM, ESG, and the new Climate Reporting Disclosures; the SEC, the CSRD, and more. We've got a lot of acronyms today! [1:01] As you know, RISKWORLD 2024 is coming up from May 5th through May 8th, 2024, in sunny San Diego, California. Registration is open at RIMS.org/RISKWORLD. Register today! There's a link in this episode's show notes. [1:22] In Episode 276 of RIMScast we had opening keynote Peter Diamandis join us. Check out that episode for just a taste of what's in store for RISKWORLD 2024. The full roster of keynotes has been announced! I'm so excited! We will be welcoming Academy Award-winning actress, director, and activist, Marlee Matlin! [1:46] For our industry keynote, we will be rejoined by Evan G. Greenberg, the Chairman and Chief Executive Officer of Chubb Limited and Chubb Group. That session will be sponsored by Chubb. Just announced, our closing keynote on May 8th will be Daymond G. John. You know him from Shark Tank. He's also the Founder of FUBU. I'm a big fan! [2:10] I'm extremely excited about that closing keynote on May 8th! Experience all the energies of our keynotes at RISKWORLD! Register at RIMS.org/RISKWORLD. We want to see you there! [2:24] Today's guest is one of my favorites. She is Jana Utter, the Vice President of Enterprise Risk Management at Centene Corporation. In 2022, RIMS named her to the Risk Management Honor Roll. She is the former chair of the RIMS Strategic and Enterprise Risk Management Council. Jana is knowledgeable about ERM and ESG. [2:50] Since there were new SEC Climate Disclosure Rules announced, I wanted Jana to come back on the show and fill us in on what we need to know. This dialogue will dovetail with her upcoming RISKWORLD session on May 6th at 2:45 p.m. in Room AB25, Sustainability Reporting, Making ERM Transparent. It is part of the ESG track. She'll be co-presenting with Bob Hirth. [3:25] Jana Utter, welcome back to RIMScast! Jana was the 2022 RIMS Risk Management Honor Roll Inductee. Jana and Justin go back quite a few years. This is her third time as a RIMScast guest. Jana was the chair of the RIMS Strategic and Enterprise Risk Management Council. She misses it a bit but has moved on to other RIMS volunteer activities. [4:10] Jana is here to discuss the SEC Climate Disclosures in the news. The U.S. SEC proposed final rules for Sustainability Reporting Standards. Also, the EU Corporate Standard Reporting Directive (CSRD) is making headlines. [5:02] Jana thinks it is important as risk professionals to think of sustainability in the same way that we think about enterprise risk management. They are both important. Jana speaks of the 2017 COSO ERM Update, Integrating Strategy with Performance. [5:29] That COSO document says that ERM helps enhance performance by more closely linking strategy and business objectives to risk. ERM affects value strategy and is linked to the business. The COSO framework also discusses how ERM leads to better decision-making. [5:48] The International Sustainability Standards Board (ISSB) says sustainability factors are becoming part of mainstream investment decision-making. Companies are called upon to provide high-quality global comparable information on sustainability reported risks and opportunities. [6:28] As ERM professionals, we are trying to identify risks to help protect the value and future ongoing business concerns of the company. Sustainability reporting is trying to do the same thing, protect the long-term value of the company. To Jana, that seems to be a natural fit. [7:00] Justin and Jana agree that the data should support the story-telling of the organization or the risk professional. Sustainability reporting is a big part of that data, just as financial statements are. [7:17] Sustainability reporting disclosures publish additional information by a company to inform stakeholders, including investors, business partners, employees, and customers. Jana thinks about it the same way as about financial statement information, which caters to the same stakeholder audience. [8:14] Jana notes it's important to know which of the different reporting directives for sustainability reporting standards apply to your company in the jurisdictions or geographies in which your company operates. Global sustainability disclosures are not 100% consistent. In the U.S., some states have additional expectations for ESG reporting above the SEC rules. [10:10] ESG is showing up in commercials. Jana finds that interesting as her friends and family still don't know what the acronym ESG means. It's appearing in the mainstream, with DEI. [11:31] Jana says that a lot of people who are responsible for enterprise risk management, including her industry peers, are not also responsible for sustainability reporting and disclosures. How can risk professionals get connected to the sustainability reporting team? [12:23] Jana recommends risk professionals use the RACI matrix: Who's Responsible? Who's Accountable? Who's Consulted? And Who's Informed? If you're not in this matrix, ask to join it as a consultant. She lists ways to contribute by connecting to different areas of the company. [13:56] It's important to know where your company operates. U.S. companies with no operations outside the U.S. may be able to follow the IFRS SASB Sustainable Accounting Standards and the SEC Climate Disclosure rules and other SEC-related rules that cover sustainability, as well as any state rules. [14:59] If you're U.S.-based with any operations in Europe, you're going to want to monitor CSRD and make sure you understand and follow that protocol. That should cover you for the majority of any sustainability risks in the U.S. [15:42] Jana's go-tos are the International Financial Reporting Standards (IFRS), International Sustainability Standards Board (ISSB), and Sustainability Accounting Standards Board (SASB). ISSB includes the Taskforce on Climate-Related Financial Disclosure (TCFD). TCFD and CDP (formerly Carbon Disclosure Project) are closely aligned. [16:46] Jana repeats, pay attention to the IFRS and what they do. IFRS is geared to the investor community. Also watch the Global Reporting Initiative (GRI), which is focused on social and environmental impact reporting. [17:46] SASB is the Sustainability Accounting Standards Board. Justin invites you to look for these acronym links in the show notes. [18:06] RIMS plug time! You can sign up now for RISKWORLD pre-conference workshops. They will all be held on May 4th and 5th at the San Diego Convention Center. The link is in this episode's show notes. [18:19] The topics include but are not limited to Applying and Integrating ERM, Fundamentals of Insurance, and a RIMS-CRMP Exam Prep Workshop. Go to RIMS.org/RISKWORLD, go to Learn, and then Workshops and you'll find them there. [18:35] RIMS Virtual Workshops: Visit RIMS.org/virtualworkshops to see the full calendar. Virtual workshops are in session, beginning in June, starting with Leveraging Data and Analytics for Continuous Risk Management. That's a three-part course that begins on June 6th. We've got Fundamentals of Insurance on June 11th and 12th. [18:55] We've got Fundamentals of Risk Management on June 18th and 19th and we've got Captives as an Alternate Risk Financing Technique on June 26th and 27th. More information about these workshops and others is on the RIMS Virtual Workshops page and a link is in this episode's show notes. [19:13] If you attend RISKWORLD, be sure to download the RIMS Events App. This is different from the RIMS App, available only to members. The RIMS Events App will help you keep sessions organized, take notes, communicate with other attendees, and a whole lot of other great features because there's so much happening. This is a great way to stay on schedule. [19:38] On May 8th, at 2:10 p.m., please go over to the Global Studio and check out RIMScast Live for a special session with RIMS Risk Manager of the Year 2024, Steve Robles. Steve received the award for his fantastic work with LA County. We will discuss his career and we will give all of you a chance to ask him anything that's on your mind. [20:03] Steve's a great guest. We've already recorded next week's episode together. In a clip from the episode, Steve says his risk group at LA County was responsible for about 100K county employees. He didn't know all their names, but if he knew their name, that was probably a bad thing! Be sure to tune in to RIMScast next week for more podcasting gold! [20:35] Steve was a lot of fun and our session at the Global Studio on May 8th at 2:10 p.m. is going to be a blast! Be there! [20:43] Webinars: On April 30th, to close out Supply Chain Integrity Month, we welcome Moody's, who will present Resilience in Turbulent Times: Navigating Geopolitical Challenges in Supply Chains. Our friends from TÜV SÜD GRC will return on May 23rd with Respond to Emerging Risks with a Winning Property Loss Control Formula. [21:08] On June 6th, Evident ID makes its RIMS Webinar debut with Uncovering Hidden Risks in Your Third-Party Risk Management Program. On June 13th, our friends at Riskonnect return to present Unlocking the Value of Business Continuity and Insurable Risk Management. That's a great line-up for the next couple of months! [21:30] Visit RIMS.org/Webinars to learn more about these webinars and to register! Links are in the show notes. Webinar registration is complimentary for RIMS members. [21:38] The RIMS ERM Conference 2024 will be held on November 18th and 19th in Boston, Massachusetts. RIMS continues to present the best conference agenda by featuring the most engaged and knowledgeable risk professionals leading the discussions. [21:53] RIMS wants to hear from you. Submit your session by Friday, May 3rd. A link is in this episode's show notes. The best submissions will address current and future issues facing ERM practitioners and provide takeaways for an audience of risk professionals, business leaders, students, governmental officers, legal professionals, and more. [24:15] You must keep it relevant to ERM and Strategic Enterprise Risk Management. Remember, product sales pitches are not acceptable nor appropriate as part of the RIMS ERM Conference Education Program. [22:46] Jana Utter has a session at RISKWORLD on May 6th at 2:45 p.m. with Bob Hirth, called Sustainability Reporting: Making ERM Transparent. It's part of the ESG track. It will be in Room 25AB. Jana is excited about the session. There are a lot of great sessions that run concurrently, but everybody should head over to Room 25AB on May 6th at 2:45 to hear more from Jana! [23:35] Risk professionals are supposed to have a line of communication to the C-suite and the enterprise to take these announcements seriously. Jana says a risk professional has to treat sustainability reporting and disclosures like any other risk. An emerging risk can sometimes bubble up to become a noticed risk. [24:42] Jana tells of her experience in reporting what ERM saw as up-and-coming emerging risks, capturing ESG and sustainability-related risks, and reporting disclosure expectations bubbling up in emerging risks. It eventually gets the attention when the time is right. [25:40] Keep any emerging risk in the reporting to the extent possible. When the time is right, it will become important, not only to the ERM professional but to others where you've been trying to raise the flag. Risk professionals, make a note! [26:19] Jana says Scope 3 Emissions are pretty complex. It is comprised of 15 categories. Scope 1 is a company's use of natural gas. Scope 2 is its use of electricity. They're more straightforward. [27:16] The focus of Scope 3 is supply chain emissions. Most enterprise risk management professionals may not know or have had any reason to focus on how many suppliers their company has. It can be thousands or tens of thousands. It's challenging. [27:54] The Greenhouse Gas Protocol and other authoritative sources have ways to categorize types of vendors and use categorizations as a way to calculate emissions. It's still very complex and much more subjective. [28:30] To get the quality of reporting you need for financial statements, with external auditor reviews and having the same level of controls and tightness on the calculations, Scope 3 becomes quite complex. [28:56] Justin reads from the U.S. EPA guidance on Scope 3: “The result of activities from assets not owned or controlled by the reporting organization but that the organization indirectly affects in its value chain.” Scope 3 emissions include up-chain and down-chain. A risk professional has a lot of work to do dealing with Scope 3 emissions. [29:37] Jana mentions that a challenge around Scope 3 is double counting. A manufacturer uses a third party to deliver goods to a retailer. Both the manufacturer and the retailer count the third party for emissions. Communication has to occur between the manufacturer and its retailers. So Scope 3 emissions reporting is not required now. [31:04] Jana talks about possible consequences of the failure of an enterprise to comply with the rule. It will probably be similar to any other failure to report accurately. You'll get a letter with a deadline to comply. There could be levels of penalties. It could be the same as not filing your financial statements on time. Jana suggests you check with your legal counsel. [33:10] Another trend Jana sees is the rise of Artificial Intelligence. It's on everybody's mind. There are sessions at RISKWORLD on the upside and downside risks and benefits of AI. AI has the ability to bring together a lot of information for the ERM practitioner. It still needs human interaction to determine what those results might mean and play out for your company. [34:32] Jana would not limit the research to what the AI brought back for a data set. AI can't replace the human experience and reasoning ability. [35:05] Another topic Jana sees, as we get to 2025, people are looking to the end of the decade from a risk perspective, taking a little longer-term view than normal for risk professionals, looking past current and emerging risk and thinking ahead. How are the risks of today going to progress to 2030? Justin invites Jana to come back in 2030 for a look back! [36:32] Justin describes how he has eased into using AI for simple things. [37:17] On May 6, at 2:45 p.m. in Room 25AB, Jana will co-host a RISKWORLD session, Sustainability Reporting: Making ERM Transparent: Environmental, Social and Governance. It may be one of the last times we see Bob Hirth speaking in a session with Jana. Bob has quasi-retired. They will reminisce a bit about what came true and what did not. [38:57] Jana and Bob will take questions if there is time at the end and maybe during the session. Check out Sustainability Reporting: Making ERM Transparent. This is going to affect your organization! [39:22] Jana, it has been such a pleasure to reconnect with you! We always find your insights very enlightening. We'll have you back before 2030! Let's set a date after we wrap and a date for 2030! Thank you, Jana! [39:42] Special thanks again to Jana Utter for joining us here on RIMScast. She's one of our favorites and she will be one of yours, too, when you see her live at RISKWORLD, on May 6th at 2:45 p.m. in Room 25AB for Sustainability Reporting: Making ERM Transparent! Registered attendees should use the RIMS Events App to get you where you need to go at RISKWORLD. [40:08] Go to the App Store and download the RIMS App. This is an exclusive members-only benefit with all sorts of RIMS resources and coverage. It's different from the RIMS Events App. Everybody loves the RIMS App! [40:40] You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let's collaborate! Contact pd@rims.org for more information. [41:25] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email membershipdept@RIMS.org for more information. [41:43] Risk Knowledge is the RIMS searchable content library that provides relevant information for today's risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more. [41:59] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management. Justin Smulison is the Business Content Manager at RIMS. You can email Justin at Content@RIMS.org. [42:20] Thank you for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe! Mentioned in this Episode: RISKWORLD 2024 — San Diego, CA | May 5–8, 2024 RISKWORLD Pre-Conference Workshops RISKWORLD Speakers NEW FOR MEMBERS! RIMS Mobile App RIMS DEI Council Spencer Educational Foundation — Grants Page RIMS-Certified Risk Management Professional (RIMS-CRMP) RIMS-CRMP Virtual Workshops RIMS ERM Conference 2024 — Nov 18-19 — Boston, MA — Call For Session Submissions by May 3. RIMS Risk Management Awards Edition 2024 Spencer-RIMS Risk Management Challenge — Live at RISKWORLD SEC Climate Disclosures — March 2024 announcement (On March 6, 2024, the SEC issued a final rule different from the proposed rule.) RIMS Webinars: Resilience In Turbulent Times: Navigating Geopolitical Challenges in Supply Chains | Sponsored by Moody's | April 30, 2024 Respond to Emerging Risks with this Winning Property Loss Control Formula | Sponsored by TÜV SÜD GRC| May 23, 2024 Uncovering Hidden Risks in Your Third-Party Risk Management Program | Sponsored by EVIDENT ID | June 6, 2024 Unlocking the Value of Business Continuity and Insurable Risk Management | Sponsored by Riskonnect | June 13, 2024 RIMS.org/Webinars Upcoming Virtual Workshops: See the full calendar of RIMS Virtual Workshops RIMS-CRMP Prep Workshops Related RIMScast Episodes: “ERM, ESG, and More Acronyms with Jana Utter” (2022) “Scenario Planning in 2024 with the RIMS SERMC” “RISKWORLD 2024 Keynote Peter Diamandis” “Harnessing Innovation's Promise with ERM Conference 2023 Keynote Bob Roitblat” “Live From RIMS ERM Conference 2023” “All Roads Lead to ERM” “ERM's Value Proposition with Chris Mandel” Sponsored RIMScast Episodes: “Platinum Protection: Underwriting and risk engineering's role in protecting commercial properties” | Sponsored by AXA XL (New!) “Elevating RMIS — The Archer Way” | Sponsored by Archer “Alliant's P&C Outlook For 2024” | Sponsored by Alliant “Why Subrogation is the New Arbitration” | Sponsored by Fleet Response “Cyclone Season: Proactive Preparation for Loss Minimization” | Sponsored by Prudent Insurance Brokers Ltd. “Subrogation and the Competitive Advantage” | Sponsored by Fleet Response “Cyberrisk Outlook 2023” | Sponsored by Alliant “Chemical Industry: How To Succeed Amid Emerging Risks and a Challenging Market” | Sponsored by TÜV SÜD “Insuring the Future of the Environment” | Sponsored by AXA XL “Insights into the Gig Economy and its Contractors” | Sponsored by Zurich “The Importance of Disaster Planning Relationships” | Sponsored by ServiceMaster RIMS Publications, Content, and Links: RIMS Membership — Whether you are a new member or need to transition, be a part of the global risk management community! RIMS Virtual Workshops On-Demand Webinars RIMS-Certified Risk Management Professional (RIMS-CRMP) RIMS-CRMP Stories — New interview featuring Manny Padilla! Spencer Educational Foundation “Leveraging Insurance and Risk Management to Address Political Risk” — RIMS Executive Report RIMS Events, Education, and Services: RIMS Risk Maturity Model® RIMS Events App Apple | Google Play Sponsor RIMScast: Contact sales@rims.org or pd@rims.org for more information. Want to Learn More? Keep up with the podcast on RIMS.org and listen on Spotify and Apple Podcasts. Have a question or suggestion? Email: Content@rims.org. Join the Conversation! Follow @RIMSorg on Facebook, Twitter, and LinkedIn. About our guest: Jana Utter: Vice President, Enterprise Risk Management, Centene Corporation Tweetables (Edited For Social Media Use): It's important as risk professionals to think of sustainability in the same way we think about enterprise risk management. We think about ERM as being important. Then sustainability is also important. — Jana Utter There's a lot out there and you can get overwhelmed by trying to meet the requirements or expectations of all of them. — Jana Utter In reporting disclosure expectations bubbling up in emerging risks, it eventually gets the attention when the time is right. — Jana Utter As we get to 2025, I'm seeing a lot of looking to the end of the decade, from a risk perspective, taking a little longer-term view than we normally do as risk professionals, coupling current and emerging and what may be new on the horizon, thinking ahead to 2030. — Jana Utter
After Chris' report this week, Will and Ben are joined by Paul Macer, Consultant with Kite and David Christensen, Oxfordshire farmer, to talk about forage management in the context of the incredibly wet weather experienced across the country this past season. Paul and David discuss some of the challenges on farm as a result and outline strategies for when it begins to improve to get on top of things, emphasising the need for patience. They discuss lessons that can be learned from the last year and what farmers can do to plan and mitigate for these kinds of issues in the long-term, touching on how this relates to TCFD and the potential cost to the industry of rectifying these issues, if investment in food security for the future isn't prioritised by policy makers. Please note: The information provided during this podcast has been prepared for general informational purposes only and does not constitute advice. The information must not be relied upon for any purpose and no representation or warranty is given as to its accuracy, completeness or otherwise. Any reference to other organisations, businesses or products during the podcast are not endorsements or recommendations of Dairy Consulting Ltd or its affiliated companies. The views of the presenter are personal and may not be the views of Dairy Consulting Ltd. The contents of this podcast are the copyright of Dairy Consulting Ltd.
Host Mike Sakell speaks with new Center for Discovery CEO Dr Terry Hamlin on her 40 year career and new role at TCFD. Dr Hamlin discusses the upcoming opening of The Center for Discovery Childrens Specialty Hospital and other short term and long term priorities. Dr Hamlin also speaks to the role of TCFD as the largest employer in Sullivan County NY and it's commitment to the community.
SRI360 | Socially Responsible Investing, ESG, Impact Investing, Sustainable Investing
What if your investments could be a force for global change? At BlackRock, the world's largest asset management company, they're steering capital towards a sustainable future with green bonds and ESG fixed-income investing.In this episode, I'm speaking with Ashley Schulten, the Head of ESG Investment for Global Fixed Income at BlackRock. After graduating from Vanderbilt University, Ashley entered the world of finance as a bond trader at First Union. From there, she evolved in the financial world at institutions like BNP Paribas, J.P. Morgan, and Goldman Sachs, before landing at BlackRock. At BlackRock, where over 600 people manage more than $700 billion invested in sustainable strategies, Ashley oversees ESG investing and integration in the active fixed-income asset class.Besides driving the change toward a sustainable future within finance, her leadership extends beyond BlackRock to influential roles in the TCFD and the Executive Committee of the ICMA Green and Social Bond Principles.Ashley is also an Aspen Institute First Movers Fellow and sits on the board of the Mianus River Gorge, the first land conservancy project for the Nature Conservancy, which showcases her commitment to sustainability.This episode highlights the power of integrating ESG data into investment analysis and decision-making. Ashley also shares how she saw the birth and development of the green bonds market, explaining how they work, and how BlackRock was an early adopter of this transformative financial instrument.By leveraging green bonds, impact investing, and ESG data, BlackRock not only achieves its desired risk profiles and outcomes for investors but also drives meaningful change in the real economy.Ashley and I also discuss BlackRock's PEXT/NEXT ESG framework that her team uses to evaluate, tag, and categorize investments based on their positive and negative externalities.Ready to learn the ins and outs of green bonds and ESG fixed-income investing? Tune in.Show notes: https://sri360.com/podcast/ashley-schulten/About the SRI 360° Podcast: The SRI 360° Podcast is focused exclusively on sustainable & responsible investing. In each episode, I interview a world-class investor who is an accomplished practitioner from all asset classes. Connect with SRI360°: Sign up for the free weekly email update Visit the SRI360° PODCASTVisit the SRI360° WEBSITEFollow SRI360° on X/Twitter Follow SRI360° on FACEBOOK Key Takeaways:Intro (00:00)Meet Ashley Schulten and learn about her background (03:00)Ashley's evolution from options trader to Head of ESG of Global Fixed Income at BlackRock(13:22)An overview of BlackRock & its sustainable strategies (21:09)Green bonds & the role of publicly traded bonds in sustainability (25:50)ESG criteria in investment analysis & an explanation of PEXT/NEXT (34:31)ESG-integrated vs. ESG-tilted portfolios & examples of ESG fixed-income funds (46:58)The evolution of green bonds into a trillion-dollar market & their role in sustainable finance (57:32)Measuring impact on fixed-income portfolios & issuer engagement (01:05:22)Final thoughts & rapid fire questions (01:13:50)Additional Resources: Connect with Ashley: LinkedInConnect with BlackRock: Twitter Website
I have been closely observing for 4 years how Clarity AI has evolved. This team, exceptionally strong in AI topics and with an ultra-strong academic footprint, has developed an interesting offering for the financial sector (among others). Having Angel on the podcast was a chance to delve deeper into their value proposition and understand the values they uphold through their platform. The DNA of this scale-up is fundamentally in sustainability and transparency. So, we took a closer look at the models developed, how their offering has expanded and adapted to the needs dictated by European regulation and what makes their sustainability tech kit the "most comprehensive and granular" in the market. We also talked about clients like Klarna and solutions for meeting the requirements of CRR, SFDR, and TCFD. No wonder Clarity AI has won so many awards.
After Chris' milk market report, Will and Ben are joined by not one but two of the Kite team; Hayley Campbell-Gibbons, Head of Sustainability and consultant Emma McAvoy alongside Jason Bayley, a Staffordshire dairy farmer. They share their thoughts on the highlights and mood at Dairy Tech this year where they were also speaking about the effects and impact of climate change on farm. Emma and Hayley discuss a recent survey of farmers which shows the extent of the issue with Jason talking though the challenges he has faced and what investments he's made to plan for and mitigate. In highlighting these challenges and TCFD requirements for the supply chain and considering the potential threat to milk supply and food security, Hayley reminds listeners that this must be addressed and funded by the whole supply chain..
he NRF Big Show Conference 2024, a landmark event across the retail industry, concluded this week in New York City. This year, we decided to attend, and to our surprise, the conference took an unexpected yet critical turn towards sustainability, signaling a significant shift in the industry's priorities. As one of retail's most significant technology-focused events, we were pleased to see the sector locked in on emphasizing minimizing risk, enhancing resilience through ESG (Environmental, Social, and Governance) initiatives, and leveraging technology for operational efficiency. There was much to take in– we were able to take away some compelling insights from the show: ESG and resilience in focus: The conference showcased a solid commitment to ESG principles, emphasizing building resilient supply chains. This shift reflects a growing awareness of the need for sustainable practices in retail.Retail leaders now prioritize sustainability, a notable change given the industry's traditional focus on profit and growth. Technological innovations in supply chain management: A key highlight was using AI and predictive modeling to minimize supply chain disruptions. This approach is not only innovative but also a critical step in ensuring smooth retail operations amidst increasing environmental uncertainties.Technology integration in supply chains paves the way for more efficient and reliable operations, crucial for the retail sector's success. Walmart's pioneering approach to sustainable supply chains: Walmart's session, led by their EVP of Supply Chain Operations and SVP of Sustainability, stood out. They discussed creating value through sustainable supply chains, linking resilience, efficiency, product availability, risk mitigation, and worker opportunities.This session highlighted the practical benefits of sustainable practices regarding environmental impact and business efficiency. Tech-driven solutions for supply chain weather-related disruptions Innovations by major players like IBM and smaller companies in AI-driven predictive modeling for weather-related supply chain disruptions were impressive.These technologies embody the idea of physical risk mitigation, which is crucial for maintaining steady and reliable supply chains in the face of increasing natural disasters and climate change impacts. TCFD and its practical implications: The conference illustrated the practical application of TCFD (Task Force on Climate-related Financial Disclosures) principles in retail. The focus was on building resilience and strategic value creation through climate risk assessment and management.TCFD's framework was implicitly present in the tools and technologies showcased, highlighting the industry's move towards comprehensive climate risk management. Sustainability as a cross-functional priority: The conference wasn't solely aimed at sustainability experts but attracted a diverse group of retail professionals. This diversity underscores the universal importance of sustainability across all retail sectors.Discussions on AI, technology, and supplier engagement in decarbonization indicate a holistic approach to sustainability, integrating it into every aspect of retail operations. The NRF Big Show Conference 2024 marked a pivotal moment for the retail industry, with a clear shift towards sustainability and technological innovation. The conference highlighted the latest trends and solutions and underscored the industry's commitment to a more sustainable future. The insights gained from this event are vital for anyone involved in retail, showcasing how sustainability and technology are becoming integral to the sector's success and resilience. The energy and engagement at the conference promise an even more impactful event next year, driving the industry toward a more sustainable and technologically advanced future.
Opinions expressed are those of the speakers based on market conditions as of the date of recording, are subject to change without notice and do not necessarily reflect Mercer's opinions.In the year since the previous COP in Egypt there has been little progress made in scaling adaptation.To discuss, Amy Barnes, Head of Sustainability and Climate Change Strategy at Marsh is joined by James Crask Head of Strategic Risk Consulting at Marsh UK and Rob Bailey, Partner at Oliver Wyman, specializing in climate and sustainability.Together they share insights into navigating the challenges and seizing possible opportunities presented by climate change. Also exploring how organizations can both build and embrace resilience by anticipating potential disruptions, quantifying risks, and developing response plans.For more information about Marsh McLennan's presence at COP28, contact the team at mercerinvestmentsolutions@mercer.com or visit https://www.marshmclennan.com/pages/COP28.htmlMercer is proud of its ESG commitments, which are reported by Marsh McLennan, as well as its responsible investment policy and TCFD report. For further information, please visit www.mercer.com/investing-sustainably or www.marshmclennan.com/about/esg.html This does not constitute an offer or a solicitation of an offer to buy or sell securities, commodities and/or any other financial instruments or products or constitute a solicitation on behalf of any of the investment managers, their affiliates. For the avoidance of doubt, this is not formal investment advice to allow any party to transact. Additional advice will be required in advance of entering into any contract.Read our full important notices - click here © 2023 Mercer (US) LLC. All rights reserved.
Opinions expressed are those of the speakers based on market conditions as of the date of recording, are subject to change without notice and do not necessarily reflect Mercer's opinions. In this episode Helga Birgden and Hill Gaston sat down with Debbie Fielder, Deputy Head of Clwyd Pension Fund to delve into the topic of transition. Together, they explore the crucial role investors play in driving the transition to a net-zero economy and how they can effectively manage investment risks, seize opportunities, and seek to mitigate the impacts of climate change.For more information about Marsh McLennan's presence at COP28, contact the team at mercerinvestmentsolutions@mercer.com or visit https://www.marshmclennan.com/pages/COP28.htmlMercer is proud of its ESG commitments, which are reported by Marsh McLennan, as well as its responsible investment policy and TCFD report. For further information, please visit www.mercer.com/investing-sustainably or www.marshmclennan.com/about/esg.html This does not constitute an offer or a solicitation of an offer to buy or sell securities, commodities and/or any other financial instruments or products or constitute a solicitation on behalf of any of the investment managers, their affiliates. For the avoidance of doubt, this is not formal investment advice to allow any party to transact. Additional advice will be required in advance of entering into any contract.Read our full important notices - click here © 2023 Mercer (US) LLC. All rights reserved.
The Task Force on Climate-related Financial Disclosures (TCFD) framework serves as a foundation for the major ESG disclosure frameworks, and also the basis for the California SB 261 climate disclosure rules recently signed into law. The UK first mandated reporting under the TCFD for listed companies beginning in 2021, and as such, there are two years of reports and insights available in 2023. In today's podcast, host Heather Horn sat down with Mark O'Sullivan, PwC UK's Head of Corporate Reporting, to discuss PwC's review of the second year of mandatory TCFD reporting for certain companies in the UK, and how insights from this review can help companies looking to start or enhance their climate-related disclosures. In this episode, you'll hear:4:44 - Our review findings for year two of mandatory TCFD reporting in the UK10:12 - Current challenges, including the understanding and expectation gaps faced by companies required to “comply or explain”18:09 - Observations and trends by industry 24:01 - Key takeaways from year two for companies looking to start or enhance their own TCFD reporting30:09 - Regulatory findings from the UK's Financial Reporting Council (FRC) on metrics and targets34:36 - What's coming next for TCFD, and its relationship with other ESG frameworks that are becoming mandatory39:39 - Discussion of materiality assessments and the FRC's recent findings44:30 - Advice for companies preparing for mandatory UK, California, or other ESG reporting rulesWant to learn more about developments in ESG and TCFD? Read PwC UK's publications, The green shoots of TCFD reporting, and Still early days: A review of year two of TCFD reporting, along with our previous podcast on how TCFD is shaping today's reporting landscape. Additionally, refer to the FRC's latest report on its reviews of TCFD disclosures, as well as the FRC Lab's recent articles on materiality assessments and applications. Mark O'Sullivan is PwC UK's Head of Corporate Reporting. He has more than 15 years of experience advising leading organizations on current and best practices in reporting and the implementation of new reporting strategies to meet the needs of the capital markets. Mark also oversees PwC's annual review of corporate reporting practices in the FTSE 350.Heather Horn is PwC's National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC's accounting and reporting weekly podcast and quarterly webcast series. With over 30 years of experience, Heather's accounting and auditing expertise includes financial instruments and rate-regulated accounting.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.
Opinions expressed are those of the speakers based on market conditions as of the date of recording, are subject to change without notice and do not necessarily reflect Mercer's opinions. Climate related risks are on the rise globally, with floods that were once considered one-in-200-year events occurring more frequently and impacting both advanced and developing economies. In first episode in our COP28 series, Andrew Bailey, Principal in Oliver Wyman's Government and Public Institutions practice sat down with Julian Enoizi, Chief Executive Officer of Guy Carpenter Europe. Together, they delve into the evolving challenges posed by climate change and explore the potential measures that both the public and private sector can take to address these issues.For more information about Marsh McLennan's presence at COP28, contact the team at mercerinvestmentsolutions@mercer.com or visit https://www.marshmclennan.com/pages/COP28.htmlMercer is proud of its ESG commitments, which are reported by Marsh McLennan, as well as its responsible investment policy and TCFD report. For further information, please visit www.mercer.com/investing-sustainably or www.marshmclennan.com/about/esg.html This does not constitute an offer or a solicitation of an offer to buy or sell securities, commodities and/or any other financial instruments or products or constitute a solicitation on behalf of any of the investment managers, their affiliates. For the avoidance of doubt, this is not formal investment advice to allow any party to transact. Additional advice will be required in advance of entering into any contract.Read our full important notices - click here © 2023 Mercer (US) LLC. All rights reserved.
In this episode of HL PensionsPod, pension Partner Duncan Buchanan is joined by pension Associate Jade Rigby to discuss climate reporting for pension schemes. Join us to find out what exactly TCFD means, what schemes climate reporting applies to, the key obligations to look out for and more. To listen to other episodes of HL PensionsPod, click here: The HL PensionsPod - Hogan Lovells Engage To listen to episode of our other podcast series, HL Pensions NewsBeat, click here: HL Pensions NewsBeat: all episodes - Hogan Lovells Engage
Just as they do every week, Embarkers Adam Olsen and Nicole Harger are here to deliver the accounting and finance news, including: A brief overview of the SEC's most recent rule amendments governing beneficial ownership reporting Tentative board decisions coming from the FASB's October 11th meeting. Findings from the TCFD's 2023 status report. For more information on these and related topics:SEC Fact Sheet: Modernization of Beneficial Ownership ReportingTentative Board Decisions: Wednesday, October 11, 2023 FASB Board MeetingTCFD Report Finds Sharp Increase in Company Disclosure of Climate Risks and OpportunitiesConnect with Embark on: LinkedIn Instagram Twitter Facebook YouTube Listen to AM Now on Apple Podcasts, Google Play, and Spotify.
ESG Talk host Andie Wood discusses the final recommendations of the Task Force on Nature-related Financial Disclosures (TNFD) and their connection to the Task Force on Climate-related Financial Disclosures (TCFD). Join us as Andie unpacks the significance of both guidelines, their strategic timing, and their impact on environmental sustainability and financial transparency.
⭐ My guest today is Steven Rothstein, the founding Managing Director of the Ceres Accelerator for Sustainable Capital Markets. Previously, Steven ran the world-renowned Perkins School for the Blind, as well as Environmental Futures, Citizen Schools, and the John F. Kennedy Library Foundation. ---
The Taskforce on Nature-related Financial Disclosures (TNFD) released its final disclosure recommendations for nature-related dependencies, impacts, risks and opportunities on September 18. Given the interrelationship between climate and nature — and the dependence of business on nature — companies may want to consider this new framework as a tool in communicating their full sustainability story.This week, Heather Horn is joined by Daniel O'Brien, PwC Canada's Sustainable Business Solutions leader and TNFD member, to discuss what companies should do now to prepare to make effective nature-related disclosures.In this episode, you'll hear discussion of:4:18 - Background on the TNFD, including how the taskforce was formed and its mission8:11 - The key principles of the TNFD framework and interoperability of the TCFD framework with existing climate reporting frameworks13:36 - Complexities in critical areas of the TNFD framework 20:08 - Recommendations for how companies should approach TNFD disclosures29:29 - How companies should approach data collection for qualitative and quantitative nature disclosures31:10 - Best practices and common pitfalls in reporting nature-related disclosures37:33 - Final thoughts on why companies should consider utilizing the TNFD frameworkLooking for more information on nature related reporting? Check out a podcast from our “Becoming nature positive” series on Committing, measuring, and reporting. Daniel O'Brien is PwC Canada's Sustainable Business Solutions leader, helping clients to align their business strategies with the environmental and social challenges and opportunities of the future economy. Daniel has over 18 years of experience in environmental consulting and management. He is also a member of the Taskforce on Nature-related Financial Disclosures (TNFD).Heather Horn is PwC's National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC's accounting and reporting weekly podcast and quarterly webcast series. With over 30 years of experience, Heather's accounting and auditing expertise includes financial instruments and rate-regulated accounting.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.
Apple continues to trailblaze on the sustainability front. On the legislative front, California's new bills might set a precedent for broader global actions, which make one thing clear: meticulous carbon accounting is no longer a choice; it's a necessity. Paving the way: California's climate bills California is once again at the forefront of climate legislation. The state has passed two promising bills: SB 253, aka the Climate Corporate Data Accountability Act, and SB 261, the Climate-related Risk Disclosure Act. Both bills remain unsigned, but their momentum is undeniable. What sets them apart? SB 253 will require companies boasting revenues over $1B (regardless of being public or private) to verify and disclose their emissions across all scopes.SB 261 demands businesses with a revenue threshold above $500M to report climate-associated risks in harmony with the TCFD. Interestingly, these bills not only align with proposed SEC rules, but notably encompass private entities, hinting at broader, rippling effects through supply chains. Apple's ongoing green evolution Lovable tech titan, Apple, publicly endorsed the California bills, likely due to its preparedness signaled by their latest product launches, which focused heavily on sustainability. Key highlights from the September 12 Apple event: Freight emissions cut: Apple is largely transitioning from air to ocean freight, which has a 95% smaller carbon footprint.Carbon neutral product debut: The launch of new Apple Watch models have been designed to be carbon neutral—a big step for the company in its quest to become net-zero by 2030 (more on that in a sec).A farewell to leather: Vegan enthusiasts rejoice! Apple is transitioning away from leather, which might redefine leather's luxury status.Recycled minerals: Apple has taken a significant step by using 100% recycled cobalt in their batteries, addressing both environmental and ethical concerns in the supply chain. While Apple's initiatives are commendable, it's essential to gauge their progress against their broader carbon reduction goals. The company aims for net-zero by 2030 and has already slashed emissions by 45% since 2015. Individual announcements might dazzle, but the journey to their ultimate goal remains paramount. And there's still the curious case of a move to titanium. Apple's choice to introduce a titanium frame in their new iPhone Pro models has raised eyebrows. With a carbon footprint significantly larger than aluminum, it begs the question: Do we really need such high-end materials in everyday tech?
With Climate Week NYC just over a week away, we're turning our attention to the global landscape for climate disclosure. Investors and stakeholders around the world have long clamored for more consistent and comparable climate-related disclosures, and in June 2023, the International Sustainability Standards Board (ISSB) responded to that call by issuing its first two standards. In this episode of the ESG Insider, we speak to ISSB Vice Chair Sue Lloyd about what the board hopes to achieve, how it is working with jurisdictions around the world, and what's next on the standard setter's agenda. “This really should be an opportunity for us all to take a step back and to really think about how sustainability risks and opportunities are really important to understand to run a business well, to run a business in a way that you're really sustaining value and creating value in the future,” Sue tells us. You can read research from S&P Global Sustainable1 on the global landscape for climate disclosure here. You can learn more about the event S&P Global Sustainable1 during Climate Week, click here. And register here. Copyright ©2023 by S&P Global DISCLAIMER This piece was published by S&P Global Sustainable1, a part of S&P Global. By accessing this Podcast, I acknowledge that S&P GLOBAL makes no warranty, guarantee, or representation as to the accuracy or sufficiency of the information featured in this Podcast. The information, opinions, and recommendations presented in this Podcast are for general information only and any reliance on the information provided in this Podcast is done at your own risk. This Podcast should not be considered professional advice. Unless specifically stated otherwise, S&P GLOBAL does not endorse, approve, recommend, or certify any information, product, process, service, or organization presented or mentioned in this Podcast, and information from this Podcast should not be referenced in any way to imply such approval or endorsement. The third party materials or content of any third party site referenced in this Podcast do not necessarily reflect the opinions, standards or policies of S&P GLOBAL. S&P GLOBAL assumes no responsibility or liability for the accuracy or completeness of the content contained in third party materials or on third party sites referenced in this Podcast or the compliance with applicable laws of such materials and/or links referenced herein. Moreover, S&P GLOBAL makes no warranty that this Podcast, or the server that makes it available, is free of viruses, worms, or other elements or codes that manifest contaminating or destructive properties. S&P GLOBAL EXPRESSLY DISCLAIMS ANY AND ALL LIABILITY OR RESPONSIBILITY FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR OTHER DAMAGES ARISING OUT OF ANY INDIVIDUAL'S USE OF, REFERENCE TO, RELIANCE ON, OR INABILITY TO USE, THIS PODCAST OR THE INFORMATION PRESENTED IN THIS PODCAST.
Hear from Jane Stevensen of JS Global Advisory, as we examine the overall progress of the global energy transition. We always knew that the transition to net-zero wasn't going to be smooth. Political realities must be considered, especially during a period of increased concern over energy security. A good recent example of political backsliding is the UK government's controversial decision to grant over a hundred new oil and gas licenses in the North Sea, despite a legally binding commitment to reach net zero by 2050. Although the UK is not alone, there are some encouraging signs of progress in other policy domains. It's a matter of where the balance lies. That's why in this episode, we explore some solutions needed to manage the risks during this uncertain transition, such as: Abandoning short-term thinking in favour of long-term strategies that align with our net-zero and socio-economic goals; Using ESG reporting frameworks as a tool for developing resilient business strategies, rather than as an annual chore; and Leveraging the information from reporting frameworks to ensure decision-makers are held accountable for their actions. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: https://www.garp.org/scr For more information on climate risk, visit GARP's Global Sustainability and Climate Risk Resource Center: https://www.garp.org/sustainability-climate If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: climateriskpodcast@garp.com Links from today's discussion: - UK Government's press release regarding the new North Sea oil and gas licenses – https://www.gov.uk/government/news/hundreds-of-new-north-sea-oil-and-gas-licences-to-boost-british-energy-independence-and-grow-the-economy-31-july-2023 - JS Global Advisory homepage - https://www.jsglobaladvisory.com/ - International Energy Agency's Net-Zero by 2050 report - https://www.iea.org/reports/net-zero-by-2050 - Climate Change Committee's letter to Rishi Sunak – https://www.theccc.org.uk/publication/letter-2023-progress-report-to-parliament-to-rt-hon-prime-minister/ - Top ten countries currently developing the most oil and gas fields - https://www.energymonitor.ai/industry/top-ten-countries-developing-the-most-oil-gas-fields/ - International Sustainability Standards Board's inaugural standards - https://www.ifrs.org/news-and-events/news/2023/06/issb-issues-ifrs-s1-ifrs-s2/ Speaker's Bio Jane Stevensen, Founding Partner, JS Global Advisory Jane has over 20 years' experience advising businesses on sustainability strategy and the implementation of TCFD, ISSB and other ESG reporting frameworks. Prior to founding JS Global Advisory, she held a number of senior positions, including leading Grant Thornton's Sustainability practice, and as Managing Director of the Climate Disclosure Standards Board. She holds an MBA from INSEAD and is a graduate of the Cambridge Institute for Sustainability Leadership.
Standardisation and comparability are key to making climate data meaningful. EDHEC's Abhishek Gupta and Nishtha Manocha discuss the hurdles this presents and how investors can clear them. This episode is sponsored by EDHEC Infra & Private Assets
Next month is the biggest event on the corporate climate calendar, the Climate Change + Business conference by Environmental Defence Society, the Sustainable Business Council and Climate Leaders Coalition.You could say it's the CCBC by the EDS and SBC and the CLC. On the agenda are the ETS, the TCFD and of course IPCC by UNFCCC. To explain all those Cs, I'm joined by Rebecca Lowe, head of communications at SBC and Antonia Burbidge head of climate and nature.
AM Now hosts Adam Olsen and Nicole Harger are at it again, delivering yet another round of critical updates from the accounting world, including: The FASB's proposed standard update to improve the accounting for purchased financial assets under ASC 326 A quick recap of the recent Private Company Council (PCC) meeting held at the end of June The IFRS Foundation takes over the monitoring of sustainability reporting progress from the TCFD. For more information on these and related topics:Proposed Accounting Standards Update, Financial Instruments—Credit Losses (Topic 326)PCC Meeting RecapIFRS to Take Over Responsibilities of the TCFDConnect with Embark on: LinkedIn Instagram Twitter Facebook YouTube Listen to AM Now on Apple Podcasts, Google Play, and Spotify.
Australia's proposed climate disclosure law The Australian government has proposed a new law to enhance climate-related financial disclosures from companies and other entities operating in the country. Drawing from the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), the proposed legislation intends to provide investors and stakeholders with reliable information about the financial risks and opportunities associated with climate change. It is part of the government's broader efforts to address climate change, foster sustainable economic growth, and safeguard the interests of investors and the broader financial system. The law will likely apply to larger entities, including listed companies, banks, insurers, and superannuation funds, but would also impact smaller companies over three years. Key features of the reporting requirements: Precise climate-related financial disclosures in annual reports.Information on the financial impact of climate-related risks and opportunities on business activities.Disclosure of relevant metrics and targets related to climate-related risks. Entities are encouraged to conduct scenario analyses to assess the potential financial impacts of various climate change scenarios. Companies must also disclose information about governance processes, controls, and procedures for managing climate-related risks and opportunities. External assurance of climate-related financial disclosures is also on the table and would enhance credibility and reliability. The Australian government plans to phase the proposed law to allow entities time to meet the new requirements. Still, the writing is on the wall: Australia acknowledges the need for globally consistent climate-related financial disclosures. The law aims to promote cross-border consistency and reduce regulatory fragmentation by considering global reporting standards like those developed by the International Sustainability Standards Board (ISSB). ISSB 's new sustainability disclosure standards The International Sustainability Standards Board (ISSB) has introduced two new disclosure standards, IFRS S1, and IFRS S2. The two finalized standards aim to establish a global benchmark for sustainability-related disclosures for capital markets. IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) centers around disclosing sustainability-related risks and opportunities across the short-, medium-, and long-term to facilitate better investor decision-making. Conversely, IFRS S2 (Climate-related Disclosures) details specific climate-related disclosures and is meant to work in tandem with IFRS S1. Both standards draw from the Task Force on Climate-related Financial Disclosures (TCFD) recommendations and aim to improve the quality of information available to investors and are supported by various global stakeholders, including investors, companies, policymakers, regulators, and international organizations like the IOSCO, the Financial Stability Board, G20, and G7 Leaders. In addition to TCFD recommendations, the ISSB's standards strive to unify and build upon existing sustainability disclosure initiatives like SASB Standards, CDSB Framework, Integrated Reporting Framework, and World Economic Forum metrics. The unification is a boon for companies already leveraging previous sustainability reporting investments because it helps tone down the complexity of multiple reporting frameworks. In short, these new disclosure standards promote global compatibility for financial markets. Both IFRS S1 and IFRS S2 will become effective for annual reporting periods beginning on or after January 1, 2024.
In this illuminating episode of the Count Me In, we sit down with our esteemed guest, Janis Parthun, VP, Advisory & Project Services at RGP. She is a leading voice in the world of Environmental, Social, and Governance (ESG). Dive into the intricacies of ESG, understand its importance in a business context, and explore its different facets - from the environmental to the social and governance perspectives. We also delve into the challenges companies face in implementing ESG strategies, discussing the evolving regulatory landscape and offering insight into the best practices adopted by forward-thinking businesses. Whether you're an industry veteran looking to refine your ESG approach or a newcomer eager to implement an ESG program, this episode is brimming with valuable insights.Connect with Janis: https://www.linkedin.com/in/janisparthun/Full Episode Transcript:Adam: Welcome to another exciting episode of Count Me In. Today we have a special guest with us, Janis Parthun. VP, Advisory and Project Services, at RGP. She is an expert in the field of Environmental, Social, Governance or ESG, as many of us know it. Janis brings a wealth of knowledge providing a fresh perspective on the complexities and significance of ESG. She will walk us through the intricacies of ESG, discuss its growing prominence, and share valuable insights on its implementation. So if you're looking to understand ESG better, and how we can add value to your business model, this is one episode you won't want to miss. Let's dive right in. Janis, we're really excited to have you on the Count Me In podcast. As we go into today, we're going to be talking about ESG or Environmental, Social, and Governance, and we hear a lot about that. IMA talks a lot about that. We've been publishing articles. There's a lot of things happening in the industry. But maybe we can start off just at a higher level and talk about what does it mean, what does it represent, in an organization? Janis: Yes, Adam, happy to do that. The term ESG or Environmental, Social, and Governance can really differ just depending on who you speak to. But I'd like to establish some initial background here. Where environmental focuses on the company's impact on the environment. On the risks, and opportunities associated with the impact of climate change on the company, its business, and its industry. Social may focus on the company's relationship with people and society, or whether the company's investing in its community. And governance focuses on issues such as how the company is run, and possibly connect to executive compensation. So ESG has been an important element to organizations approach to create value, as part of the business model, and just to the greater society impact. But what does this entail? Is what I often hear. And to elaborate a little bit more, a company's overarching ESG program will likely have top priorities determined around ESG matters. With goals, which includes metrics and possibly targets for future outlook has been set and established. To reach the goals and the targets, the company may have various initiatives and action, in order to support the goals. For example, a company may have climate change as one of its ESG priorities or material topics, and a goal to reduce emissions with the target of 40% by 2040. The organization, then, may have an initiative or a project to convert all transportation fleets to electric vehicles, as a strategy to reduce the emissions. But when we're discussing ESG, at the overarching program or program level, this is applicable across multiple material topics or priority topics. Now, the topic of ESG is not new, and there are significant funds and investments around this. Currently, over 96% of the S&P 500 already, voluntarily, publish sustainability reports in some form or fashion. But an increasing interest from parties to invest, and companies wanting to communicate or report on ESG. Regulatory and standard-setting bodies are also paying attention to how companies are reporting on ESG matters. Adam: Definitely, and you see a lot of the bigger organizations implementing it. But smaller organizations may not quite be ready or there, yet. And if you are one of those organizations that are saying, "You know what, I want to jump into this, get into this." What are some steps that a typical company might undergo to establish an ESG-type program? Is there a specific, strategic, approach that you need to take when you're implementing that? Janis: Yes, that's a great point, Adam, and there is a recommended strategic approach to this. So the other aspect to think about is the ESG strategic roadmap or steps that companies, typically, may undergo to establish an ESG program. First, is really having to determine materiality. This is driven by stakeholder and market input, industry profile, business strategy, and suggested standards and frameworks. And, then, setting goals and targets and execute on the reporting. So establishing process and oversight to have that accountability, and report or update related to performance metrics. And, then, establishing quality control. Establish process and governance to ensure the quality control of the data that's collected or reported, and of course, reevaluate in that cycle. But, more often than not, companies are encountering challenges, during the midpoint stages of executing on the ESG program strategy. And this includes adhering to regulations, standards and frameworks, and just trying to stay current and up to date. There are several in the horizon, and it's a lot going on for companies to navigate through. Program management and governance, having organizational governance over the ESG program, and monitoring and tracking against existing goals, appropriately, and evaluating progress. For example, do you have a governance process around adding or revising priorities or metrics? And monitoring the actions or involved in ESG committee that helps govern the goals set and tracked. And data quality management; is the information reliable? For example, is the information collected comprehensive to the metrics being tracked? Such as inclusive the various regions and markets. Is that information reliable? Such as is it trackable or include supporting details. And with each of these challenges, it's important to pull the right resources in to help and address. Adam: Before we get too much into the details of program management and those challenges. You've mentioned, a few times, about different regulating bodies have been watching in certain areas. There are regulations and new standards coming up, and that can be challenging for anybody and everybody. A lot of people are overworked. People are getting stressed out, and the idea of having more regulations to follow can be very stress inducing. But, maybe, you can talk a little bit more about how it's affecting companies and what people can expect? Janis: Yes, I can, definitely, elaborate that a little bit more, Adam, and dive a little bit deeper. From a regulatory driver perspective, and you're so right on this. And there's such an increasing scrutiny just on how companies are presenting the ESG-related information. As well as the push to reduce the climate impact to the environment. That multiple regulatory authorities are pushing their agendas, and that's what's creating all this pressure, too. For U.S. public companies the pressure is coming from the SEC. With the biggest proposal on climate-related disclosures announced last year. To disclose governance, strategy, risk management, and targets on the climate impact and, specifically, greenhouse gas emissions. And there are multiple elements within the proposal that's creating concerns for many public companies. Especially around disclosing climate-related financial impact and Scope 3 Emissions. I think by the time this recording is released, the SEC will likely announce an update and issue, possibly, a reduced-scope version of the original proposal. It is a lot to ask for companies to disclose on those areas. And this is just one specific proposal, and there are several other SEC proposals anticipated to finalize in the horizon, this year, as well. Beyond the climate-related disclosures. And in the EU, the pressure is coming from the EU Commission. The Commission recently adopted a new rule, late last year, The Corporate Sustainability Reporting Directive or CSRD. For companies to publish detailed information on sustainability matters. To increase the company's accountability, and to prevent divergent sustainability standards. This is a pretty big ask since there are 12 standards drafted with 10 specific ESG topics. Spanning from climate, to workforce, to business conduct. And this may also impact a U.S. company if the company has subsidiaries in the EU market. And there are also country jurisdictional specific requirements to consider. That I won't mention here because there's just a lot to capture. But beyond reporting, the EU is also proposing another new rule to streamline information about companies' environmental performance of products, and to reduce misleading claims. So just to add one more thing to this, related to all this, is that companies are also, increasingly, being asked to communicate and report information that's understandable, across a broad base of the investor community. So more so around voluntary standards. And this is happening through recognized standards and frameworks for comparability, and there are a number of them as well. So the top two standards that are frequently referred to is SASB and GRI. But there are also others, each with a specific mission. And, again, this is just a lot for companies to get a handle of and stay on top of. And I just wanted to, at least, share a little bit of the landscape of the different type of requirements or voluntary type of disclosures. And, then, interesting enough, just to highlight or illustrate a little bit. So, for example, we at RGP had helped one of our clients on a related issue last year. The Task Force for Climate-related Financial Disclosures or TCFD, issued new recommendations in October 2021. And the client needed to understand the degree of the changes. As well as consider how this impacts the clients reporting to another global environmental disclosure system, the CDP in connection to the TCFD changes. So that's just one example. But the reporting information can also be interconnected across the requirements. Adam: That's really interesting, and as you're going into this process. Either get some help or make sure you're staying on top of that, or find an organization that can help you stay on top of those standards, and help understand it better. Because depending on where your organization is, will be what standards you have to follow, obviously. So we've talked about the standards and the different regulations, and you've gotten a very good overview of that, for the audience. But you mentioned aspects of program management and goverments outside of their keeping up with the standards and regulations. You have to actually manage the program. Maybe you can talk about what you've seen where companies are on track, where they're not on track, and maybe give some best practices. Janis: Yes, happy to do so, Adam, it's a great point to bring up. So I've seen companies where they're really leading the pack, and companies where they're falling short on their ESG commitments to their stakeholders. Now, in terms of companies where they're really on track and where they're not. Industries that are ahead of the curve in ESG reporting are in consumer products and real estate, and for good reasons. So for consumer products, recent studies show that consumers are shifting their spending towards products with ESG-related claims, and products making ESG-related claims have averaged higher cumulative growth, over a five-year period. This is a major reason that consumer product companies are pushing to be ahead of the curve in ESG initiatives, and to report on ESG commitments. Chipotle is one setting a good example, recently. The company announced that its 2023 ESG goals will be linked to executive incentive compensation. Impacting its 2023 annual incentive bonus by 15%. So making that commitment to set the goals and hold its people accountable, to achieve the goals, is a great example. For real estate, considering there's a significant emission generation from the real estate value chain, ESG is now a top-risk priority for the industry. And CBRE is one setting a good example. When the company entered into a new five-year revolving credit agreement, last year, to increase it's revolving credit facility. It linked the agreement with achieving certain sustainability goals. Such as to provide procurement spending with sustainable suppliers to converting vehicle fleet to electric vehicles. But there are instances where the companies are using ESG to promote and market products misleadingly. And this is a lesson learned for one retail company last year. On what might happen when your organization lacks the program governance and the structure to manage the ESG initiatives, and the integrity of the data reported. In this instance, the apparel company was investigated by regulators for misleading sustainability related products, and had to remove the labels from their products and websites. I mean, the company really broke the brand promise of offering sustainable apparel. It's clear that there's consumer demand for more eco-friendly products. But, again, this is where the regulators are stepping in. And the European Commission had, recently, highlighted that over 50% examined environmental claims, in the EU study conducted, were found to be vague, misleading, or unfounded. And because of this, the Commission had since proposed a rule that I just had mentioned earlier to address. And companies that are lagging behind in ESG reporting are more likely in IT or healthcare industry. With less direct customer or consumer pressures, or just have other pressures to take priority, such as COVID-19 in the past few years. And companies may also have other external pressures, such as having to obtain capital, for example, from the mergers and acquisition perspective. A number of studies indicate that senior management suggest they're willing to pay premiums to purchase companies with positive ESG records. ESG is also influencing capital raising process. For example, this year, credit ratings agency, Fitch Ratings, announced plans to use its climate vulnerability scores to enhance the process to consider credit-relevant, climate-related risks or its corporate credit ratings for non-financial attributes. So with the increasing demands by stakeholders, companies may wonder how they can establish or elevate to a solid ESG program and governance. To start, it's about understanding your priorities, based on your industry profile and business model. Because once the priorities are established, organizations can drill down further. Understand what specific metrics goals and targets are relevant, and integrate these activities to the business strategy. With all this having a structured, more formal ESG program, with governance structure, can help set clear strategic goals and expectations. That are recognizable by a broader audience, and hold management and internal stakeholders more accountable. Whether public or private organization; just having structure can really help better communicate ESG efforts and progress to the community, to creditors, or investors that large Adam: Janis, as you're given that answer one thing that really stuck out to me is data quality. And as we, in the accounting world, know how important your data is, and having numbers in the right place, and reporting accurate numbers. And I know that there are concerns around the quality of data in ESG information that is reported. And you made some examples of people not giving that accurate thing and, especially, on how they're marketing things. What can companies do to address these types of issues? Janis: Yes, that's a great point to have a discussion. Yes, data quality is a significant concern for companies. And the concerns used to be more around the data collection and the availability of the information. But now companies are getting more comfort around what information is available just through understanding and research. And it's been shifting more focus on the data quality, or the completeness and the accuracy of the data collected, calculated, and reported out. And there's been an increasing focus on the data quality with a number of our clients in preparation, more so for future assurance. And this is an increasing trend that's also being observed at the board level. According to a recent survey, conducted with corporate directors. Over 50% of public company director respondents indicated that the higher quality of ESG information is being presented to the board. But, then, with a lower percentage and less progress for private companies. To address the concerns or focus area companies are seeing how they can prove the quality, through building internal control structure to ESG data. And interesting, and timely enough, the IMA, also, recently, issued a publication, Achieving Effective Internal Control over Sustainability Reporting. That directly speaks to having effective control and oversight to that ESG information. To have that high-quality and fit for purpose for decision making. This publication is really resourceful, it's providing an overarching, regulatory landscape and incorporating the COSO Internal Control Framework, also at RGP, we've also built a consultation approach on this for our clients, incorporating the COSO Internal Controls Framework. So that we can be able to help guide the clients to be able to add control structure, and improve the reliance of ESG-related information. Now, another strategy is around automation for the data collection and reporting systems. And while I don't, necessarily, think there's one true solution leader, yet. But there are definitely tools, currently, out there in the market, to help address either at the initial collection process. To the generation of the report or disclosures, and there are, definitely, a few few that are more prominent. But I do think that the platforms are maturing. They'll likely be a leader on this as the platforms mature. But it's also important to consider what systems you can leverage within your organization. You'll want to think about what system or combination of systems, can also be able to help you pace all the way through. Adam: Definitely, and depending what systems, as you can tell, as we talk about ESG, it applies across multiple functions within an organization. But who are we, in IMA podcast, to not talk about the finance and controllership function within an organization? What role does the finance team provide in the ESG reporting ecosystem? Janis: Well, Adam, within the finance organization. Historically, controllership functions are familiar with implementing new reporting requirements. Working across multiple stakeholders and, at the same time, bringing that structure and that rigor to the process outcome. And this can be, similarly, said about the FP&A's function, as well, or the reporting and analysis role. Leveraging the same expertise to apply to ESG reporting. I really see the future role of accounting and finance professionals, to be ranging from the orchestrator to the gatekeeper of the ESG programs. Depending on the industry and the business model of the organization. If the company is more focused on addressing risk, finance may likely play a more significant role, as an orchestrator. Versus if the focus is on supply chain; operations or sustainability office more likely would be the orchestrator. While finance is the gatekeeper for the reported information. But regardless of which spectrum of the role the finance organization fulfills. One, definitive, role is to be the partner, working collaboratively alongside other functions. I have seen similar experience and value translate from financial reporting to ESG reporting. Besides staying on top of regulatory updates, finance and accounting professionals can also provide process and governance structure to sustainability reporting. This includes developing standard processes for data collection. With associated reviewers and workflows, with sign off functions to building similar support structure such as a SharePoint site. For a one centralized communication of requirements, such as with dates, processes, sources, and training. The same attributes apply to operational reporting. As organizations are setting goals and targets to monitor and work across multiple stakeholders. Finance professionals can also bring that structure and the rigor to process outcome. The shift towards the future role and change can really be accomplished, through guidance development and education. Companies in more mature stages of reporting, are developing guidance and, typically, expected from the finance organizations to enhance policies and procedures. That add to the structure and the rigor. But there are still many organizations not at that mature stage, and this is where education and training is key. To educate the finance and accounting professionals, to be the partners to the ESG reporting ecosystem. The other aspects to consider is to educate the process or data owners. Who may not have been previously involved from regulatory reporting or audit perspective. To be able to strive for and achieve for that level of detail and the quality of information expected. And as finance and internal control functions are, increasingly, getting involved. We at RGP are also developing the project methodology and an ESG training program. To educate our consulting team on ESG reporting, and this is really to upskill our talent base, and to be able to anticipate our client need, and to be better prepared. Adam: That's awesome, and it sounds like you're doing great work, and those are some great insights. And we've covered a lot during this podcast, and, maybe, to finalize things, maybe, you can give a summary of some final thoughts that you want our listeners to remember, as they walk away. Janis: Yes, happy to, and a key point I want to emphasize is that, now, there are many more external pressures and expectations to consider when companies are issuing sustainability reports. And it's important to bring in the right people, to either implement and manage or to improve the ESG program. And this includes bringing in finance and accounting professionals. Who can be a valuable partner working, collaboratively, alongside other functions. I am, personally, passionate about this topic. But more, importantly, how much value our finance and accounting profession can bring to a company's sustainability program. We should advocate more for this role, and just provide the guidance associated to support the profession. And that's really my last point, I want to emphasize. So thank you, Adam, for having me on this podcast. And I'm very excited about the future developments to come related to sustainability reporting. Adam: Yes, thank you so much, Janis, for coming on. I really appreciate you sharing your insight with the audience. Announcer: This has been Count Me In, IMA's podcast providing you with the latest perspectives of thought leaders from the accounting and finance profession. If you like what you heard, and you'd like to be counted in, for more relevant accounting and finance education, visit IMA's website at www.imanet.org
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The release of the first two IFRS® Sustainability Disclosure Standards is a key milestone in the evolution of the sustainability reporting landscape towards high-quality mandatory reporting. We now have a clear global baseline for investor-focused sustainability reporting that local jurisdictions can build on. In this podcast – the first in a new series focusing on ESG reporting – Bryce Ehrhardt and Simon Weaver consider how to approach these new standards – from the standpoint of companies that already use the TCFD framework as well as those that don't. ‘ISSB™' is a Trade Mark and ‘IFRS®', ‘IASB®', ‘IFRIC®', ‘IFRS for SMEs®', ‘IAS®' and ‘SIC®' are registered Trade Marks of the IFRS Foundation and are used by KPMG IFRG Limited under licence subject to the terms and conditions contained therein. Please contact the IFRS Foundation for details of countries where its Trade Marks are in use and/or have been registered.
Calls for companies to provide climate-related financial disclosure are growing, with regulators, investors, insurers, and others increasingly looking for robust climate self-reporting. Marsh's Dr. Bev Adams, Randal Waters, and Sophie Griffin discuss the evolving nature of climate risk and how the information generated for disclosure can help businesses understand their exposures and take the most effective action to mitigate their risks. You can access a transcript of the episode here. For more insights and insurance and risk management solutions, follow Marsh on LinkedIn and Twitter and visit marsh.com
As highlighted in the recent COSO publication on Internal Controls over Sustainability Reporting, good governance and systems for sustainable business activities and ESG reporting require attention to potential risks around fraud and greenwashing. Reflecting Grant Thornton's recent report on control activities related to these risks, join us as we take a dive deep into the world of Environmental, Social, and Governance (ESG) in business with our latest episode of the 'Count Me In' podcast. Hosted by a panel of experts, which includes Catie Serex, Douglas Hileman and Dan Mosher, our podcast uncovers the truth behind ESG, its importance in today's business world, the challenges it presents, and importantly, its potential role in fraudulent activities. Tune in for a fascinating conversation on ESG reporting, corporate purpose, sustainability, and the latest trends affecting investors, employees, and stakeholders alike. Don't miss this chance to stay informed and ahead of the curve in the ever-evolving world of business.Connect with our speakers:Catie: https://www.linkedin.com/in/ctserex/ Dan: https://www.linkedin.com/in/dan-mosher-8552519/Doug: https://www.linkedin.com/in/douglas-hileman-fsa-crma-cpea-p-e-6abbb71/Download the reports mentioned into today's podcast:Achieving Effective Internal Control Over Sustainability ReportingManaging Fraud Risks in an Evolving ESG EnvironmentFull Episode Transcript:Adam: Hello, and welcome back to another enlightening episode of Count Me In. I'm your host, Adam Larson, and today we're diving deep into the complexities of Environmental, Social, and Governance, ESG, with a distinguished panel of experts. We're joined by Douglas Hileman, an experienced sustainability consultant, with over three decades of experience in environmental management systems, and internal controls. Alongside him, we have Dan Mosher, a seasoned professional who excels in helping businesses navigate the complexities of sustainability and environmental risks. Last but not least, we welcome Catie Serex. A leader in environmental, health, and safety, auditing and management who assists businesses in integrating sustainable and socially responsible practices. Today's discussion will delve into the importance of ESG, the challenges businesses face in managing ESG data, and the potential risk of fraud in ESG reporting. Here we go, let's listen in together. [00:01:00] < Music > Doug: And one of the things that we might kick off is with a very basic question of what is ESG? Dan, when people ask you this, how do you answer? Dan: Well, it really is a big umbrella, and I'll ask for some help from Catie in this regard. But ESG stands for Environmental, Social, and Governance. And, so, lots of things under that environmental area. Everything from waste management and air quality, climate change. From a social perspective, it could be your human capital management, health and safety matters. Governance, I think of anticorruption, data risks, and the like. So it really is a broad title when we say ESG. Catie, do you have some things you'd like to add to that comment? Catie: Yes, Dan, you definitely covered the gamut as far as some of the phrasings and the terminology, and really the topics that fall under that ESG umbrella. What I would want to add is that ESG is certainly one of the buzziest words in business today. But you might not know that ESG is, very simply, the newest iteration of concepts you've likely known for a long time. It's been previously known as corporate purpose, sustainability, even philanthropy. But what differentiates ESG from these previous versions is that it now represents the closest alignment, to date, of business operations, so think about your tangible assets. To those intangible elements of business that drive value. And, in this case, I'm referring to things like customer loyalty, labor environments, community engagement support. And because of this connection, ESG is moving from a nice-to-have to a need-to-have for companies, but also their investors, their customers, and other key stakeholders like their employees. Doug: I also think of ESG as a convenient taxonomy for all things non-financial. Many people have published those pillars or the word clouds that's in the ACFE report, and what topic goes where. For financial reporting, we know where sales goes and we know where EBITDA goes. We know where those are in a format and how to put the data and information together for clarity and reporting. For all things non-financial, it's just such a sprawling array of topics that ESG serves for one reason, in one way, as just simply a taxonomy. And there are some issues, such as climate change, like Dan mentioned, that really transcend more than one category, if you will. But for purposes of just where do you find it, and how do you manage it, and it can just serve as a taxonomy. Catie, to your point, on how to organize some processes, some controls, some recordings to understand what the organization is doing. Dan: And I'd be interested in hearing your thoughts on the various channels in which this information is being put out there in the public. Catie, maybe you have some thoughts around the wide scope of that. Catie: Yes, so in terms of the reporting side of things and getting to the nuts and bolts of what, I'm sure our listeners are interested in, in terms of, what am I on the hook for? There are a lot of reporting frameworks out there that are guiding folks. And I know that that's been a point of confusion for people is understanding, there are all these different acronyms out there. That I can report to like SASB, or the Global Reporting Initiative, GRI, Task Force for Climate-Related Financial Disclosures or TCFD. There are a lot of frameworks out there, but the field is narrowing. So some of the communication that we've been seeing from these wider umbrella frameworks, are that they are working together to consolidate. To make things a little bit more straightforward, and to make things a little bit more uniform across the reporting landscape. But that's currently in progress, and this is just a result of this being not in nascent stages, but still in its growth period, and really honing down what are the things that shareholders, regulators, and such need to see when it comes to these ESG disclosures. Dan: And I know that Doug has been on the front line when things are misreported or omitted, and I'd love to hear some of his worst stories. Doug: Thank you, Dan. The question about reporting channels is a very good one, and Catie brought up several things that are happening in reporting to general capital markets. I also observe that there are other channels for reporting, including impact investors who may be interested in one particular topic. The general purpose capital reporting takes in one tranche, if you will, of topics that need to come external from an organization, a company. There are other investors who are interested, let's say, in human rights, or in product conformity, or in diversity, or in commitment to climate, and they want more information about those topics. So you may get information from investor groups or analyst groups, and that's a type of report. Another channel of reporting that I see is B2B reporting. The customers, and business partners, and banks, joint venture participants, are looking more into non-financial risk management. Non-financial performance and alignment, which is ESG. So before entering business relationships, and even during business relationships up and down the value chain, there's also ESG reporting that happens there. It is starting to align in some ways that they're asking questions about the same topics, but the questions themselves can be different. And, in many cases, the reporting, the demand for reporting has outpaced companies' abilities to report on the data and information. So that pull has created a bit of a vacuum. And many companies are scrambling to come up with processes, systems, and controls so they can generate the data and information that these stakeholders are expecting in terms of reporting. Catie: Doug, just to jump in there, from a client perspective, we are seeing that a lot of our clients are getting, especially, those B2B requests from either their suppliers or their downstream supply chain vendors. And the way that we're seeing that manifest is a lot of these larger companies are looking at their supply chain. If you think about greenhouse gas emissions, they're looking at their Scope 3 emissions, which is all value chain. And, so, they're sending requests to clients like ours that are asking, "What are your Scope 1 and 2 emissions? Because we need to report that." We are seeing clients feeling the pressure to respond to that, to continue to be part of those wider supply chains. And, so, they're coming to us asking for assistance in figuring out what those ESG metrics are and being able to respond in complete and accurate ways. So that they can continue to have those key customers that are asking for that information. Dan: Yes, and I'd like to pick up on that point, too, and Catie was just touching on it. I think some of the key challenges are, for businesses today, what is the providence of their ESG data? What is the confidence they have over the accuracy and completeness of it? And what is the integrity and quality of that data as it travels along its life cycle, from where it started to where it was reported? And has it maintained that integrity all along? Because bringing this back to our main topic of fraud, there are many pressures and incentives that might have someone misstate or omit information in their ESG reporting. Doug: I'd like to pick up on a topic that Catie discussed on climate change and greenhouse gas emissions. It does, inherently, involve a complex web of data from different sources, including suppliers. And companies may be asked to produce or report the greenhouse gas emissions for themselves, as a company, on Scope 1 and Scope 2. I hope our listeners know what that means. Or on a part of Scope 3, or their carbon emissions as a company, or their carbon emissions in a particular country or state, or their carbon emissions for the products they manufacture for a certain customer. So those are different ways to slice and dice much of the same data. And it all goes back, I'll put in a plug here for the COSO report mapping the internal control framework to ESG. That can be applied to anything, any topic, any company, including, for example, greenhouse gas emissions. In terms of fraud, there can be a difference between just sloppy, or just unavailability of data and willful reporting of incorrect or misleading data. For example, to get preferred treatment at a customer, or to get preferred inclusion in an ESG index fund, or to get a reduction on interest rate from a line of credit, from a financial institution that's looking for green investments. So we're still seeing an increase in awareness of the fact where, "Well, we can just report this because nobody cares." Or, "Well, it's not regulatory, so we'll just let it go." And willful deceit in order to get a benefit at the expense of other competitors in these areas, which goes into the fraud bucket. That ACFE and Grant Thornton touched upon in that report. Dan: Yes, thank you, Doug. The report that Doug is referring to is a joint publication of the Association of Certified Fraud Examiners and Grant Thornton called Managing Fraud Risks in an Evolving ESG Environment. You can get it from our website and from the ACFE, and within that, we did develop an ESG fraud taxonomy. It encompasses both some of the traditional areas of fraud that have always been there. Corruption, asset misappropriation, and financial statement fraud. And there are certainly ways in which ESG fraud manifests itself under each of those headings. To that traditional fraud tree we have added an additional area of non-financial reporting fraud, which Doug was alluding to. And the things that might happen under there, there could be false labeling or advertising. Think of things like declarations of saying that it's "Dolphin-free tuna" that has certainly been an area of litigation in the past. I'm thinking about false disclosures or representations, and that might be along the B2B relationships. Where you are omitting information or misstating information to a company that you are a supplier to. Lots of ways that things can be contorted, and misrepresented, and misstated, omitted, and if it is done intentionally, then we're going to consider it fraud. Doug: Dan, I can't say enough good things about the report that came out and, certainly, my hat is off to you, and Catie, and everybody who contributed to that. I know that was a massive effort. What I think is so elegant about that report is that many of our listeners struggle with how to get their arms around ESG, this sprawling issue is so new, it's so different. The report begins with a construct that's familiar to everybody who deals with fraud, that famous ACFE fraud tree. And the report adds a leaf, if you will, if you look at that tree at the bottom row, that provides an ESG example for the fraud tree as everybody knows it. And then it was very elegant how you added that branch, if you will, for the ESG, the non-financial reporting with nine different twigs to describe a taxonomy there, and then the leaves with the examples, it was really well done. So anybody familiar with fraud and the fraud tree. Anybody who has been involved in developing procedures to prevent fraud or to detect fraud on the audit side, you can just use that reference document and get pretty close to how you think about ESG fraud to prevent it and detect it. Another thing I would observe that the human rights, no product was made with child labor. Non-financial reporting and compliance exists in a lot of places out there, and it can be possible, it can be easy for stakeholders to compare information that arises from different reporting channels for consistency. For example, Dan mentioned one of the claims could be, "None of our products use forced labor". In the U.S. there's a law called the The Uyghur Forced Labor Prevention Act. That has the rebuttable presumption that products made from a certain area, in China, if you cannot prove that those products were made absent forced labor, the assumption is that they were made with forced labor. And the Customs and Border Protection is seizing products at the docks before they come into the country, and waiting on companies to provide evidence that the products are forced-labor-free. So if you have claims on your website, or on products, or in contract documents that they're forced labor free, and the Customs and Border Protection is reporting that your goods are being held and not allowed into the country. There is an inconsistency there that can be embarrassing, at a minimum, to companies. And it can cost the company sales, customers, and reputational damage if it turns out that those claims cannot be supported. Dan: Yes, so just picking up on what Doug was talking with The Uyghur Forced Labor Prevention Act, this is a big stick for the government in they have a presumption of guilt, so to say. That if they suspect that a good has any raw material or input within it because it is in whole or in part of your good that's being imported, is suspected of having forced labor in it, and that means every tier of your supply chain down to the raw material or seed, if it's an agricultural product. If there is a suspicion that it is tainted by forced labor, it will not be allowed into the country unless you can prove otherwise. And, I think, it's going to become, increasingly, challenging for companies to know their supply chain inside and out. And from a fraud perspective, whether any part of that supply chain is deceiving the rest of the supply chain on whether or not it's tainted by forced labor. I was just reading over the holidays, there is a tremendous report that came out from Sheffield Hallam University, in the UK, around the various risks in the auto industry for being tainted by forced labor in the production of raw materials. it's really a very difficult area, and it is something that our clients are coming to us, asking for help around. Dan: Catie, do you have some other thoughts around the regulatory environment in which this is probably just one small piece? Catie: Yes, Dan and Doug, you both brought up a great point of there are current existing regulations that apply to certain areas of ESG. But what we're seeing is a global movement towards more overarching regulations across different jurisdictions. So, for instance, last year, the European Union approved the Corporate Sustainability Reporting Directive Regulation, also called CSRD, and that sets reporting standards for entities that meet certain EU reporting thresholds. In the UK, there IS BEIS, which is focused on climate-related disclosures for entities that operate in the UK. And then, of course, for our U.S. listeners, I'm sure you all have heard about the coming SEC final rule when it comes to climate disclosures. We anticipate that being finalized as early as April of this year. But all that to say that the regulatory environment, itself, from an ESG perspective, there is a growing recognition that there needs to be standards that companies adhere to. So that there is comparability across the landscape when it comes to ESG data. Because it is hard for whoever is looking at this data to discern what certain data points may mean because they may be defined differently. So these standards are helping to create an environment that is more accountable and more comparable which, hopefully, will help clarify some things and clarify the way that you go about reporting. That said, even though some of those regulations are very early stage or haven't been released, yet, there are already consequences for misreporting. So we saw last year, or in the past couple of years, that Goldman Sachs was fined $4 million and BNY Mellon was fined $1.5 million for what were considering material misstatements. And in the future, we see that more frequent consequences could be around the corner. But I can't speak to what that looks like just, yet. Dan, do you have any experience, or Doug, in terms of any additional consequences that you're seeing for misreporting of ESG data? Dan: Yes, well, for me, as you said, there are consequences from misstating, publicly, the information. There are just a ton of business consequences of misstating the information. So, for example, I myself was involved in an investigation in which there was a licensor of images for the front of T-shirts and the like. There was a requirement that none of the production would take place in Bangladesh after the tragedy in 2013, in which a building collapsed, killing more than 1000 apparel workers. And, so, there was a requirement that no production take place in Bangladesh, and there was wide-scale deception on that point. Such that there was a lot of production going on in Bangladesh, but it was being misreported to the licensor as being produced in India or in other jurisdictions throughout Asia. That finding, in the investigation that we carried out, was the subject of whether or not a billion-dollar license would go forward or not. Doug: I can see several potential risks or consequences for misreporting or misleading content and reporting, and they vary according to the reporting channel. For example, there is ESG content in financial statements, in income statements and balance sheets. There are reserve estimates for contingent environmental liabilities. Something that's a little newer is asset values for Emission Reduction Credits or expected costs in the future for Emission Reduction Credits, if that's part of a company's strategy for reducing greenhouse gas emissions. Those have a vintage and the value depends on the vintage. If those are, knowingly, misstated, you're subject to all the things that come with that in financial reporting, disclosure controls, and procedures, and the like. For misrepresentation and misreporting in the Form 10-K, the analysts and the investors are using this to make investment decisions. There are shareholders who are quite happy to file proxy filings or to file suit by claiming to be misled for the content in there. Some of those are starting to see the light of day or to get quietly settled. There was an instance of a major European bank, an employee blowing a whistle, publicly, saying that their screening process for companies to include in an ESG index fund was just not very good or, maybe, a sham. So there's the reputational damage that can be a hit to a company and the market cap for many companies, the reputation, the intangible value, exceeds the value of PP and E - Plant Property and Equipment. So intangible value and brand value is something to watch out for too and that can take a hit, with misrepresentation or loss of reputation in ESG and non-financial matters. Catie: And, Doug, just to piggyback on that point, there's the financial disclosure side of that, but there's also, as we talked about, the intangible side of that. So customers are increasingly wanting to purchase sustainably made goods, and engage with companies that align with their own personal moral values and beliefs. And, so, when they learn that whether it's a good that's claiming to be sustainably made is actually unsustainable, you could lose members of your customer base. At times it inspires boycotts and protests and, especially, in the age of digital media, just imagine someone telling their community about their experience, and that going on Twitter, or TikTok, or something of that nature. Those are some of the risks that we're seeing from not a regulatory penalty approach. But also there are consequences when it comes to your customer base, the value of your brand, and your brand reputation. Doug: We've discussed a lot of different data, a lot of different stakeholders, a lot of different needs. So how do companies manage this kind of reporting. When everybody wants something different. There are different ways to slice and dice. How does a company get their arms around this and make sure that it's right? Catie: Yes, that's a great question, Doug. So as I said before, there are a lot of different frameworks out there. But they are working to consolidate the frameworks and to consolidate the data expectations of those frameworks. From what I'm seeing, it appears that SASB, GRI, and TCFD, all of which I previously mentioned, are emerging as the big three of ESG data disclosure frameworks. And it's important that our listeners understand that while these frameworks are not required for disclosure, they can help guide your reporting. And, ultimately, they can help your company be more aware of any potential fraud risks and avoid being susceptible to associated fraud with those activities and reporting. Of course, the frameworks, themselves, are not mandatory for disclosure. They are, as I said, guidelines and we talked, previously, about the different regulations that are emerging. I think the thing that's important to know here is that some of these frameworks are being utilized to inform those regulations. So we know that the SEC climate disclosure draws heavily from TCFD reporting framework. And, so, some of our clients are asking us to conduct TCFD reporting gap analysis to help them prepare for those upcoming SEC-required disclosures. We have clients who are asking us to do assurance readiness services because they know that they will fall in that year one reporting group, the large accelerated filers for the SEC. And, so, having us test their existing processes, internal controls, things of that nature, and validate that their data is complete and accurate is something that they're doing to prepare for the upcoming regulatory framework. So the way to think about those frameworks is that it's a helpful way for you to organize your disclosures in anticipation of future reporting requirements. Dan, do you have any thoughts from the fraud risk perspective of how those frameworks can usually help you. In terms of guarding against any potential misreporting or intentional or unintentional? Dan: Yes, so when I think about this, I usually do go back to the ACFE's Fraud Triangle, thinking about incentives and pressures, the opportunities for fraud, and the rationalizations one might apply to committing those frauds. So when I think about reporting what is the role of that report? Is it going to a regulator? Is it going into a corporate social responsibility or a marketing publication? All of those bear different kinds of risks. So in terms of on this reporting topic, that people and companies should be thinking about taking an inventory of all the ways in which that ESG information is going out to the public, across those different channels. And ensuring that as they're building up their capabilities and infrastructure to maintain good data quality, that it is also ensuring consistency across all of those reporting channels. What I anticipate, and I think we're starting to see it, is that there will be cases where the same information is reported in one channel, but is inconsistent with how it was reported in another channel, and that will be held against the company. You should not be finding yourself saying one thing to the government and something else in a publication. Doug: Dan, I absolutely agree with that. I would say to this question, it comes back to a familiar trilogy that we hear as the answer to so many questions, and that is people, process, and technology. And I'll start at the end and work my way back, there are many vendors offering technology fixes and even companies, in-house, building technology fixes to gather and report data. But the data and the information is only as good as the process it took to come up with the data. You can automate the wrong process and just get the wrong answer faster. So you back up to the process and say, "Well, since this non-financial information originates in so many parts of the company, and even from other companies, suppliers, customers, business partners, and the like. What is the process to get them?" There are also challenges I see on reporting periods. Governments, like EPA, may have an annual reporting process. There are companies with a non-calendar fiscal year, who need to report some of this on a fiscal year basis. So where are the reporting periods? What is the process to collect information and report to a state agency, to a stakeholder, to a customer? So those processes need to be nailed down, and that's where that wonderful COSO internal controls framework comes in. Just follow that and apply it as it's appropriate. And because that data and information comes from so many different sources, I encourage people to have the right people involved. If companies establish a cross-functional team and get folks from all the places who provide this information. Real estate, operations, safety, procurement, R&D if they understand their roles and responsibilities in collecting this information to enable the kind of reporting that Catie has mentioned and others, then that goes a long way to making the process more effective and more efficient. Dan: Yes, and I would like to add on to what Doug was saying. That in terms of the fact that this information is coming from different parts of organizations, that haven't necessarily undergone third-party assurance procedures. That this is a transition period here where, I think, a broader spectrum of people, within an organization, are going to be changing their mindset around the accuracy and completeness of the data because they know that they are subject to that third-party assurance. Catie: And, Doug, you had mentioned, I think, very rightly, that having the right team in place is critical to being able to have the right processes and technology also in place, to ensure that your reporting is complete and accurate. And we're seeing on the client side that a lot of our clients don't, necessarily, have the resources in place to start to organize that. So I wanted to ask, in your opinion, and Dan, feel free to jump in. How important is it to not just assign one person to do all of your ESG reporting? But how important is it to have that cross-functional team approach to these non-financial disclosures? Doug: I think it is absolutely essential. One structure that I see work a lot is to have a steering committee. To set strategy and to be plugged into those reporting frameworks that you've mentioned, Catie, and some of the customer demands and organizational strategy and where things are going. And a more tactical working group that's closer to operations, and the systems, and controls to really modify those systems and controls and talk to each other. A couple of things I've seen work really well. I've seen those committees be assembled, and people show up, and they don't know why they're in the room. And it really helps to have a coach or an external resource to help facilitate all that. To make sure that people are talking the right language and not talking past each other. So you get everybody on the same page to take actions in ways that are aligned with the company objectives, that helps a lot. A couple of functions that I don't see on those teams but, I think, should be there a lot more than they are IT, for sure. And many of our listeners are from accounting, I would say accounting. I don't see on those cross-functional teams as much as I think they should be. Much of what is required for the sustainability reporting, it comes from accounting. You get utility bills from accounting. Get a list of assets from accounting. Get a list of our ten largest customers from accounting. Accounting has the master key to a lot of this information. But the information that's in company systems, in my experience, was not designed for the way the information needs to be reclaimed and used now. So there are some changes that need to be made in accounting to enable this reporting and to enable the systems and controls. To, then, ensure accurate reporting, verifiable reporting, and the fact that we tighten down the controls so that we can prevent the possibility of fraud. Dan: Yes, great points, Doug. I really appreciate you bringing up the steering committee. Someone at the top of an organization that is there to set strategy. And I think that it is common, and it will become more commonplace, to have that steering committee require that any fraud risk assessments, that are being done within an organization, include ESG fraud as part of what they're doing. And in conducting a fraud risk assessment that is a stress test, that's looking for ways in which various kinds of scenarios. Such as the scenarios we brought up in our report with the ACFE, of ways in which ESG fraud could be committed. And then looking at whether the controls in place within the organization, are sufficient to prevent and detect or detect those occurrences. So, Doug, I know that you've been contributing to an exciting report, that's been recently released from the IMA. Could you give us a few highlights in that regard? Doug: Sure, I'd be happy to. I was one of the primary authors of this document, the only non-CPA on the team. I provided the ESG specialist input for this very important report. It's a COSO report and IMA is, of course, a member of COSO and their leadership had a terrific role in pulling this together. And it will resemble a lot kind of the report you've had major involvement with from the ACFE, on fraud, ESG fraud. In that it begins with a framework that everybody knows and is very familiar with, the COSO Internal Controls Framework, and there's something old and something new. There is a summary of some of the key points of the COSO Internal Controls Framework, the components, and the points of focus. And on each of the components there's some information demonstrating how the internal controls framework can be applied to ESG. So that in terms of non-financial management of information, and of reporting, and of communications, and of control environment. It can be applied and it points you in the right direction on how it can be adopted to improve the effectiveness, and the efficiency of company organization, management, and reporting. I encourage everyone to read it and use it. [00:36:50] < Outro > Announcer: This has been Count Me In, IMA's podcast. Providing you with the latest perspectives of thought leaders from the accounting and finance profession. If you like what you heard and you'd like to be counted in for more relevant accounting and finance education, visit IMA's website at www.imanet.org.
Can Finance Fuel a Greener, Sustainable Future? | Exclusive Interview with David Carlin
In this week's episode, host Natalie Pierce speaks with attorneys Alexa Belonick and Andy Thorpe from Gunderson Dettmer's Public Companies and Capital Markets practice. The three discuss the increasing focus on ESG factors in the venture capital landscape and by public companies.
Grace Kwok has over 23 years' experiences in sustainable design and green building projects in Hong Kong, China and across Asia-Pacific, she has led the AEC group to set up a robust sustainability governance structure and is committed to promoting sustainability from the inside out. The Group committed to ambitious sustainability commitments, including Science-Based Target and Net Zero Carbon Operation by 2030, and is a Signatory for the Business for Ambition for 1.5°C campaign organized by SBTi and UNGC. Also, took the lead to uphold sustainability standards by conducting climate risk assessments using TCFD framework and adopting GRI Standards in its annual ESG reports. AEC Group has obtained many awards for its sustainability governance and ESG initiatives, including Honorable Mention Award in the Hong Kong Corporate Governance Excellence Awards 2020 and Grand Award in the Hong Kong Sustainability Award 2020/21. In support of World GBC's net-zero built environment agenda, AEC Group has joined the ranks of WorldGBC Asia Pacific Net Zero Collaborators in 2021. Driven by a vision to shape a sustainable future, Grace is dedicated to work with the building and construction sector to build climate resilience and accelerate net-zero transition. She had played a key role in encouraging the early adoption of green building rating systems and worked on the earliest batch of HK-BEAM and LEED projects in Hong Kong. Grace had also been facilitating the localization of international green building and sustainable infrastructure rating tools, including BREEAM and CEEQUAL. In recent years, she created a stronger momentum for the green building movement with ESG and green finance as drivers and leveraged her expertise in corporate sustainability to promote sustainable real estate from fund and developers' group to project levels. With an environmental engineering background, Grace is a keen advocate of regenerative sustainability for the built environment. She is often invited to share her insights at local, regional and global conferences, including Internoise 2017, USGBC Greenbuild China 2019, International Symposium on Regional Air Quality Management in Rapidly Development Economic Regions 2020, APEC Workshop Training on Retro-commissioning 2021 and BREEAM Summit 2022, etc. She was recently selected to join GRESB Real Estate Standard Committee to develop ESG standard for sustainable real estate and has been appointed to join major government committees to advise on matters related to sustainable development, environmental conservation as well as innovation and technology. Show Highlights Raising the bar to manage stringent building and energy codes in the Hong Kong region. Driving new industry standards and creating alternative solutions to the problems the industry is facing. Understanding the local and international standards in the finance sector to achieve a green classification. Driving green capital in the real estate sector by finding common language. Speeding up different initiatives like the quality of life category in how you present them to a client. Solving challenging problems for clients with alternative solutions shape industry standards. Working more on sustainable infrastructure to go beyond building. The city's programs need to align with the sustainable development goals. Carbon management and climate resilience tips. “Green building is very dynamic and it's got a changing landscape. Explore more about all the areas related to the green building movement. It's not only about buildings, it's about the people in the built environment as well. When we are working on a project we always remind ourselves so that we won't lose the focus, not just in the number or the modeling. Lastly, encouragement. When we're working on a green building project, you can expect it (the building) will stay there for a long time. You need to consider the whole life cycle of the building. It could become a legacy because it is going to be standing there for 50, 60 years.” -Grace Kwok Get the episode transcript here!! Show Resource and Information Linkedin Company Profile – AEC Nature, Space, Science & More | BBC Earth Blue-planet Connect with Charlie Cichetti and GBES Charlie on LinkedIn Green Building Educational Services GBES on Twitter Connect on LinkedIn Like on Facebook Google+ GBES Pinterest Pins GBES on Instagram GBES is excited our membership community is growing. Consider joining our membership community as members are given access to some of the guests on the podcasts that you can ask project questions. If you are preparing for an exam, there will be more assurance that you will pass your next exam, you will be given cliff notes if you are a member, and so much more. Go to www.gbes.com/join to learn more about the 4 different levels of access to this one-of-a-kind career-advancing green building community! If you truly enjoyed the show, don't forget to leave a positive rating and review on iTunes. We have prepared more episodes for the upcoming weeks, so come by again next week! Thank you for tuning in to the Green Building Matters Podcast! Copyright © 2023 GBES
ESG Decoded is a podcast powered by ClimeCo to share updates related to business innovation and sustainability in a clear and actionable manner. In celebration of Earth Month, we'd like to thank Big Pivot Partners, this month's sponsor. Big Pivot is an award-winning communications design firm with solutions ranging from sustainability and corporate social responsibility projects like ESG, DE&I, and TCFD reports to investor communications. As strategic consultants, they've earned a reputation for delivering strategic, creative solutions with hands-on project management that ensures projects deliver on-time and within budget. In this episode, Kaitlyn Allen talks with Mike Smith, CEO and Co-founder of Aclymate, a Denver-based climate-tech startup providing a carbon accounting and offsetting platform to help small and medium businesses manage and report their impact on the climate. Previously, Mike founded RenewWest, where he developed the largest carbon reforestation project in U.S. history, the two million tree Collins-Modoc (Moe-Dock) Project. He is a former U.S. Navy FA-18 pilot with 354 carrier-arrested landings across three deployments, ultimately attaining the rank of Commander. In this week's episode, host @Kaitlyn Allen welcomes @Mike Smith, CEO and Co-founder of @Aclymate. Listen as Kaitlyn and Mike discuss the complex relationship that small to medium-sized companies have with setting climate or ESG goals. They also dive into adequately capturing impact since many existing carbon accounting systems are designed for larger companies. Mike explains how Aclymate addresses the gap in the market. He also reminds us that we don't need to know everything related to climate change to get started, and we should avoid making things more complicated than they need to be. Mike is a Veteran (we thank him for his service) – his experience drives his perspectives on national security impacts related to climate change. Make sure to subscribe to ESG Decoded on your favorite streaming platforms and our YouTube Channel so that you're notified of new episodes! Remember to connect with us on our social media channels. Enjoy this episode! - Episode Resource Links Mike's LinkedIn Newsletter “The Mike Drop”: https://www.linkedin.com/newsletters/the-mike-drop-7046926900216164352 Aclymate Account Creation (30-day free trial): https://dashboard.aclymate.com Aclymate 30-second emissions calculator: https://aclymate.com/carbon-footprint Offset Marketplace: https://aclymate.com/offsets Big Pivot Website: www.bigpivot.net Big Pivot LinkedIn: https://www.linkedin.com/in/joelcharron
ESG Decoded is a podcast powered by ClimeCo to share updates related to business innovation and sustainability in a clear and actionable manner. In celebration of Earth Month, we'd like to thank Big Pivot Partners, this month's sponsor. Big Pivot is an award-winning communications design firm with solutions ranging from sustainability and corporate social responsibility projects like ESG, DE&I, and TCFD reports to investor communications. As strategic consultants, they've earned a reputation for delivering strategic, creative solutions with hands-on project management that ensures projects deliver on-time and within budget. In this episode, Amanda Hsieh talks with Rickard Nilsson, Head of Stewardship Success at Esgaia, which offers ESG engagement tracking software for investors. With years of experience in responsible investing and investment stewardship, Rickard heads up Esgaia's GTM strategy, thought leadership, and positioning. He works closely with investors globally and is an active voice in the industry on topics such as active ownership, the investment value chain, regulatory developments, and the role of technology. In ESG Decoded fashion, Amanda guides an ‘Impact Investing 101' conversation that can benefit institutional and individual investors. Listen as she and Rickard discuss investment stewardship as a part of impact investing strategies. They also provide historical context for responsible investing in different regions. Amanda tees up the topic of Theories of Impact and tools to measure the effectiveness of investing strategies. Both remind us that information is power. Perspectives related to responsible investing are shifting. We need to eliminate the noise and get clear about the opportunities and the path forward for these investments. Make sure to subscribe to ESG Decoded on your favorite streaming platforms and our YouTube Channel so that you're notified of our video podcast episodes! Don't forget to connect with us on our social media channels. Enjoy this episode! - Episode Resource Links Responsible Stewardship: Quality, Not Quantity: https://www.esginvestor.net/responsib... Website: https://www.esgaia.com/ Rickard's LinkedIn: https://www.linkedin.com/in/rickard-nilsson-a3980677/Website: https://www.esgaia.com/ Big Pivot Website: www.bigpivot.net Big Pivot LinkedIn: https://www.linkedin.com/in/joelcharron
ESG Decoded is a podcast powered by ClimeCo to share updates related to business innovation and sustainability in a clear and actionable manner. In celebration of Earth Month, we'd like to thank Big Pivot Partners, this month's sponsor. Big Pivot is an award-winning communications design firm partnering with some of the most experienced sustainability, investor relations, and corporate communications strategists. We collaborate with clients to tell their “story” through smart, engaging solutions in a timely, cost-effective, and service-oriented approach. Their solutions range from sustainability and corporate social responsibility projects like ESG, DE&I, and TCFD reports to investor communications — annual reports, investor presentations, enhanced proxy materials, and other solutions delivered across a variety platforms. In this episode, Kaitlyn Allen talks with Josh Hile, Co-Founder and CEO of Citizen Mint, founded and built on accessibility and impact by researching investments for both financial return and positive impact. Previously, Josh was the Director of Investment Strategy & Research at Laird Norton Wealth Management, a $16 billion registered investment advisor (RIA) headquartered in Seattle, WA. Before this, Josh worked at Russell Investments, performing due diligence on fund managers for Russell's mutual fund and consulting divisions (Russell advised on $2.2 trillion). Josh has a B.A. in Business Administration and an M.B.A. from the University of Washington's Foster School of Business. In addition, he is both a Chartered Financial Analyst (CFA®) and a Certified Public Accountant (CPA). Our loyal ESG Decoded listeners know that Kaitlyn is a massive proponent of impact investing and democratizing access to this related funding. Listen as they take a deep dive into the services Citizen Mint provides investors and beneficiaries and their process to establish metrics. Citizen Mint balances earning positive investor returns and channeling capital to projects addressing some of the more dire needs of our global society, including renewable energy, affordable housing, healthcare, and financial inclusion, to name a few. It is time to shift the way that impact investing is sometimes perceived. Investors can make money while doing good. Make sure to subscribe to ESG Decoded on your favorite streaming platforms and our YouTube Channel so that you're notified of our vodcast episodes! Don't forget to connect with us on our social media channels. Enjoy this episode! Episode Resource Links Big Pivot Website: www.bigpivot.net Big Pivot LinkedIn: https://www.linkedin.com/in/joelcharron Josh Hile's LinkedIn: https://www.linkedin.com/in/josh-hile-cfa-cpa-56323213/ Citizen Mint website: https://citizenmint.com/ Main Website: https://www.citizenmint.com White Papers & Blogs: https://www.citizenmint.com/resources/ Company LinkedIn: https://www.linkedin.com/company/citizenmint/
This week's episode features an interview with David Carlin, head of climate risk and TCFD for the UN Environment Programme Finance Initiative.
The Task Force for Climate Related Financial Disclosures (TCFD) framework underpins each of the “big 3" sustainability disclosure proposals issued in 2022. But before it was incorporated in any of these proposals, TCFD was a heavyweight in its own right in terms of the breadth of its adoption. How did TCFD become what it is today?Heather Horn was joined by Jon Williams, PwC partner and TCFD member, to unpack the history of the TCFD and look ahead to how the framework may continue to shape sustainability reporting in the future.In this episode, you'll hear discussion of:2:40 - The TCFD's history and why it was initially formed12:07 - How the TCFD works to achieve stakeholder consensus on its framework recommendations16:10 - Updates on where adoption of the TCFD framework stands at five years from its founding20:43 - Perspectives on how regulators are raising the bar on TCFD disclosures24:35 - How the TCFD was designed to interact with other existing frameworks, including the Climate Disclosure Project (CDP)29:53 - Updates on the TCFD's work plan for 202336:55 - Advice for companies who will be subject to mandatory TCFD disclosures in the futureLooking for more information on TCFD reporting and scenario analysis? Check out our previous podcast on Leveraging TCFD for climate-related disclosures.Jon Williams is a member of the TCFD and co-leads the PwC UK's Sustainability & Climate Change practice. With over three decades of experience in sustainable finance and strategy, Jon focuses on issues relating to climate change, biodiversity, water, and poverty alleviation. His clients include financial institutions in both developed and developing economies as well as companies in the retail, consumer goods, healthcare, energy, and mining sectors.Heather Horn is PwC's National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC's accounting and reporting weekly podcast and quarterly webcast series. With over 30 years of experience, Heather's accounting and auditing expertise includes financial instruments and rate-regulated accounting.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.
My guest today is Maria Fujihara, Founder and CEO of Sinai Technologies. Sinai Technologies is a VC-backed enterprise software company that measures, analyzes, prices, and reduces GHG emissions for large companies. In addition, Maria is the former: Coalition Advisor for Project Drawdown Technical Coordinator for the Green Building Council in Brazil Participant in the Global Solutions Program (GSP) at Singularity University In this episode, we talked about: Her origin story, coming to the US from Brazil with nothing, and then raising $40M and employing 60 people How they chose to work with some of the world's biggest polluters Her work to find cultural and business alignment with her carbon-intensive customers The challenge of stranded assets for large corporations How their SaaS solution helps companies understand and take action on decarbonization The role of TCFD and CDP in GHG reporting and corporate governance How her company moves sustainability from a cost center to a value adder What it's like being a woman CEO of a VC-backed company The HeartMath Institute and the connection between the heart and the brain Recommended books And lots more Hope you enjoy it! And give Maria a shout-out on LinkedIn, Slack, or Twitter by sharing this podcast with your people. --- Entrepreneurs for Impact is on a mission to help climate innovators grow faster with new investment capital, share best practices among peers, expand their networks, and reach their full potential. Here's our weekly newsletter — A 3-minute summary of climate tech startups, better habits, and deep work trends: https://entrepreneursforimpact.substack.com Our main program is a Climate CEO Mastermind peer group community: https://entrepreneursforimpact.com Our invite-only cohorts of 12 executives catalyze personal development and business growth via monthly meetings, annual retreats, and 1:1 coaching and strategy calls. Today's highly curated Mastermind members represent over $8B in market cap or assets under management. Programs are led by Dr. Chris Wedding — 4x founder, $1B of investment experience, and Duke University and UNC-Chapel Hill professor, with 70,000+ professional students taught, 25 years of meditation, an obsession with constant improvement, and far too many mistakes to keep to himself. --- Send in a voice message: https://anchor.fm/entrepreneurs-for-impact/message
In the first 2023 episode of HL PensionsPod, Pension partners Katie Banks and Duncan Buchanan look at the year ahead for defined benefit pension schemes, discussing the changes in the political and regulatory landscape, and what is to come for trustees and administrators including pensions dashboards, new DB funding code, TCFD reporting and more.
Emily and Rebeca dive deeper into the world of ESG reporting, looking at current ESG reporting regulations around the world. Stay with us as we compare and contrast local taxonomies and decode how the Taskforce on Climate-related Financial Disclosures (TCFD) has rapidly become the foundation of many reporting regulations. We wrap the episode with some predictions and hopes for the future of universal reporting. :::::: Resources: Download our 2023 Sustainability Reporting & Compliance Calendar to stay on top of the most common dates and deadlines. Listen to the first episode in our ESG Reporting series. Explore the EU Green Taxonomy Regulation Visit our Sustainability Reporting Toolbox for more resources. Follow Sustainability Business on LinkedIn for access to real-time insights and our latest blogs, videos, eBooks & more. Connect with Emily and Rebeca to share your hopes for the future of ESG reporting. ::::::
Carbon accounting (measuring and reporting climate emissions) has not traditionally been something SMBs have needed to do. That is starting to change as larger organisations are requiring reporting from their supply chains.One company looking to help SMBs with this is Greenly. They have developed a carbon accounting platform specifically for SMBs which they liken to a Freshbooks or Quickbooks for carbon accounting.I invited their CEO Alexis Normand to come on the podcast to tell us all about it.We had an excellent discussion talking about how Greenly helps organisations especially SMBs measure and report their carbon footprint, how they also work with larger enterprises to account for the carbon footprint of their supply chain and what their plans are for the future.This was a truly fascinating episode of the podcast and I learned loads as always, and I hope you do too.If you have any comments/suggestions or questions for the podcast - feel free to leave me a voice message on my SpeakPipe page, head on over to the Climate 21 Podcast Forum, or just send it to me as a direct message on Twitter/LinkedIn. Audio messages will get played (unless you specifically ask me not to).If you liked this show, please don't forget to rate and/or review it. It makes a big difference to help new people discover the show. Thanks.And remember, stay healthy, stay safe, stay sane!Music credit - Intro and Outro music for this podcast was composed, played, and produced by my daughter Luna JuniperDev InterruptedWhat the smartest minds in engineering are thinking about, working on and investing in.Listen on: Apple Podcasts SpotifyI've left SAP. I'm talking to a number of companies, but there is nothing signed yet, so if anyone else wants to get in touch, the window is still open for a while longer. Feel free to reach out to me on LinkedIn, Twitter, or simply email me tomraftery@outlook.com
The Task Force on Climate-related Financial Disclosures (TCFD) framework forms the basis of climate-related rules within each of the major ESG disclosure proposals released this year. The UK is the first jurisdiction to mandate reporting under the TCFD for listed companies. This requirement was effective for 2021, meaning these reports were available for the first time in 2022. Heather Horn sat down with Mark O'Sullivan, PwC UK's Head of Corporate Reporting, and Hilary Eastman, Director of Investor Engagement at PwC, to discuss PwC's observations on our review of the first 50 companies that reported under this mandate, as well as investor perspectives related to the filings.In this episode, our guests discuss:3:23 - Overview of our review of TCFD reporting in the UK10:06 - What we know about investor views on the importance of climate risk management17:08 - The areas investors want to understand, including the relevance of climate risk to the business, and the related financial impacts26:03 - Key challenges faced by companies when reporting under the TCFD framework31:40 - How companies in different industries approached the disclosures42:24 - The areas cited in reviews by the UK's Financial Reporting Council (FRC) and Financial Conduct Authority (FCA)47:09 - Advice for companies contemplating how best to prepare for future ESG disclosuresWant to learn more about developments in ESG and TCFD? Read PwC UK's report, The green shoots of TCFD reporting, along with our previous podcast on leveraging TCFD for climate-related disclosures. Also see the FRC's and FCA's reports on their reviews of TCFD disclosures, as well as the FRC's lab report on net zero disclosures.Hilary Eastman leads global investor engagement at PwC and has extensive experience advising on ESG reporting strategy. She manages the firm's relationships with the investment community in the UK and globally. In her role, Hilary works with investors and analysts to get their views on a variety of corporate reporting and governance matters to help companies improve their reporting to the capital markets.Mark O'Sullivan is PwC UK's Head of Corporate Reporting. He has more than 15 years of experience advising leading organizations on current and best practices in reporting and the implementation of new reporting strategies to meet the needs of the capital markets. Mark also oversees PwC's annual review of corporate reporting practices in the FTSE 350.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.
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