WTW unveils next generation climate change reporting

WTW has rolled out enhanced capability for its Climate Diagnostic tool, which first launched in April 2021, which will be showcased during this year’s AIRMIC conference in Liverpool on 6 and 7 June.

The broker said that the latest version of its tool has been developed in response to an increase in Task Force on Climate-Related Financial Disclosures (TCFD) reporting and the ever-growing need for transparency.

As such, WTW clients will now have the ability to generate tailored, instantaneous, and in-depth TCFD reports using their own collected data.

It added that this next iteration of the Climate Diagnostic tool is in line with the latest regulatory guidance and addresses the growing call for a consistent framework and set of standards for climate-related reporting alongside comparable metrics.

The TCFD is an industry-led group which helps investors understand their financial exposure to climate risk and works with companies to disclose this information in a clear and consistent way.

It was launched at the Paris COP21 in 2015 by the Financial Stability Board (FSB) and Mark Carney, the UN special envoy on Climate Action and Finance who was also the UK’s finance adviser for COP26.

Earlier this year the UK became the first G20 country to enshrine in law mandatory TCFD- aligned requirements for Britain’s largest companies and financial institutions to report on climate-related risks and opportunities.

From 6 April 2022, over 1,300 of the largest UK-registered companies and financial institutions have to disclose climate-related financial information on a mandatory basis – in line with recommendations from the TCFD.

This includes many of the UK’s largest traded companies, banks and insurers, as well as private companies with over 500 employees and £500 million in turnover.

The new requirements are intended to help investors and businesses to better understand the financial impacts of their exposure to climate change, and price climate-related risks more accurately, while supporting the greening of the UK economy, according to the government.

Commenting on the latest version of its diagnostic tool, Andy Smyth, head of GB risk and analytics, WTW, said: “Climate change has wrought progressively more tangible and globally devastating consequences. As companies seek to better understand their climate exposure and develop risk management strategies, WTW has developed a comprehensive visual representation of a businesses’ risk, powered by the client’s own data and analytics.”

“With unmatched precision and based on individual requirements, WTW will provide clients with an essential integrated tool as they look to bolster their climate resilience.”

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