CSR W2 Roles to create sustainable success and Sustainable Reporting TUTORIAL NOTES •Find information about these two topics •Investigate whether and to what extent ‘your’ company reports on these topics Climate related financial risks https://www.bis.org/bcbs/publ/d502.pdf : “Climate-related financial risks refer to the set of potential risks that may result from climate change and that could potentially impact the safety and soundness of individual financial institutions and have broader financial stability implications for the banking system.” https://www.charteredaccountantsanz.com/news-and-analysis/news/what-are-climate-related-risksand-why-should-you-know-about-them : The TCFD recommendations played a vital role in framing climate-related risks for the purposes of financial disclosures. Per their recommendations, 2 types of climate-related risks to be considered by organisations: 1- transition risks – those related to the transition to a lower-carbon economy which could entail policy, legal, technology and market changes (for example, like the policy changes recommended by the Climate Change Commission in New Zealand), and 2- physical risks – those related to the physical impacts of climate change, such as extreme weather events, chronic heat waves, sea-level rise, erosion, and biodiversity loss. https://www.rff.org/publications/explainers/climate-financial-risks-101/ : consequences of risks: - higher cost of capital systemic risk and stability of the financial system burden on the public Policies that can support assessment climate financial risks: - disclosure (including GHG emissions) climate stress testing Science based targets (SBT) https://sciencebasedtargets.org/how-it-works : Science-based targets provide a clearly-defined pathway for companies to reduce greenhouse gas (GHG) emissions, helping prevent the worst impacts of climate change and future-proof business growth. Targets considered ‘science-based’ if in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement – limiting global warming to well-below 2°C above pre-industrial levels and pursuing efforts to limit warming to 1.5°C. https://sciencebasedtargets.org/companies-taking-action/case-studies - examples of firms w SBT What actions did Patagonia take? - - - In 2010 Sustainable Apparel Coalition with aim: “An apparel industry that produces no unnecessary environmental harm and has a positive impact on the people and communities associated with its activities.” In 2013 Fair Trade Certified™ sewn label $2,300,000+ In grants made to groups focused on supporting environmentally marginalized communities and giving a voice to the groups of people who are impacted most by environmental disasters, climate change, pollution and other environmental degradations. $5,700,000+ In grants made to groups fighting to protect lands, waters and wildlife. $2,500,000+ In grants made to groups fighting to stop climate change, with particular focus on mitigating greenhouse gas emissions and improving human and ecological resiliency $2,700,000+ In grants made to groups working to scale many of the tenets of Regenerative Organic and help more farmers implement practices to improve soil health. 769 Employees who are actively involved in grant-making and deciding which environmental organizations Patagonia supports. Also a decrease in toxic materials:
