Explainers

Our UK policy briefing aims to highlight the latest developments in UK climate policy directly relevant to NEDs. Since our last briefing. there have been significant developments in the climate policy landscape, most notably the Climate Change Committee’s 2023 Progress Report to Parliament and the recent government U-turn on a number of key net zero targets. Although this has generated much discussion among the business community, particularly around contributing to investment uncertainty, other key initiatives such as those on corporate disclosure and transition planning, continue at pace.

Part 3 of the Transition Planning Toolkit. Use the ‘Governance Compass’ section in your board committee meetings to ensure that your committee’s work considers, aligns with and supports the company’s Strategic Ambition and transition plan.

Part 2 of the Transition Planning Toolkit. Complete the Transition Planning Scorecard to help assess how effectively your board is responding and contributing to the transition to a low GHG-emissions and climate-resilient economy. The scorecard serves as a valuable tool for board members to use when the company is developing its transition plan in accordance with the TPT guidance.

Part 1 of the Transition Planning Toolkit. Companies need to develop a plan for delivering on net zero targets and pledges. High-quality transition plans enable management teams to develop, communicate and implement their climate strategies.

In September 2023, the TNFD published its final Recommendations for businesses and financial institutions to disclose material interactions with nature. These aim to inform better decision-making by companies and capital providers, and contribute to a shift in global financial flows toward nature-positive outcomes and the goals of the Kunming-Montreal Global Biodiversity Framework. This briefing, produced by the Climate Governance Initiative, explains what the latest TNFD recommendations mean for you as a board director and key questions to ask in the boardroom to ensure your organisations can benefit from the opportunity to make impactful changes for business and nature.

TCFD guidance on scenario analysis.

Scenario models have formed a substantive part of managing financial risk for years. WTW look at how climate impacts – and transition - bring new subtleties to the way organizations and governments understand and use them.

COP refers to the United Nations’ annual conference on climate change. Its 28th meeting (COP28) is scheduled to begin November 30, 2023, in Dubai, United Arab Emirates. McKinsey explains the background and significance.

The Climate Governance Initiative has published the third edition of the Primer on Climate Change: Directors’ Duties and Disclosure Obligations. Produced with the Commonwealth Climate and Law Initiative and covering 31 countries and the EU, it outlines the general climate obligations for board directors.

Net zero is a corporate norm, with almost two-thirds (65%) of the annual revenue of the world’s largest 2000 companies now covered by a net zero target. Net Zero Tracker looks at the published targets at 12 June 2023.

This briefing, produced by the Climate Governance Initiative, explores and discusses the context of the proposed SEC climate disclosure rule, the current status and likely next steps, and provides key questions for board directors to ask their boards in relation to it.

A briefing from Rethinking Capital and the Centre for Climate Engagement on applying normative accounting for intangibles in net zero transition decision governance and reporting.