Businesses need to prepare to report on all of these factors at the end of their financial year. That means starting to think now about the climate-related risks posed to your business and the potential impacts. These can include risks relating to the transition to net zero, such as increased GHG emissions pricing, the cost of substituting existing products with low emission alternatives, increasing cost of raw materials and shifts in consumer preferences. They can include physical risks, such as those posed by extreme weather events and rising temperatures. There may be risks associated with shifting to more efficient modes of transport or more efficient buildings, as well as sourcing energy from lower emission technologies.
Organisations also need to report on their governance arrangements, including the role of the board and management in assessing climate-related risks and opportunities, how they oversee these issues and how progress is monitored against targets.