UK Green Finance Inquiry report concludes climate change risk reporting should be mandatory

by Carol A Adams Main points: Pension fund Trustees have a Fiduciary Duty to consider long term financial risks of climate change There’s a lack of regulatory mechanisms in place to ensure climate change risks are incorporated into investment decisions Recommendations of the Taskforce on Climate related Financial Disclosures (TCFD) should be mandatory and enforced […]

Pension funds adopt strikingly different approaches to climate change risk

by Carol Adams Pension funds invest for the long term and scientists have concluded that climate change poses a significant risk to all aspects of life, including water, food and energy security.  The implications for business are significant and yet investor and corporate action does not match this known impact of climate change and other […]

UK Green Finance Inquiry report released

by Carol A Adams Main points: Green investment levels have declined and are insufficient to meet legally binding carbon reduction targets Green bonds, carbon pricing, policy certainty and maintaining links with Europe are part of the solution Recommendations on increasing climate related financial disclosures under consideration The UK Government’s cross-party Environmental Audit Committee has today […]

Pension funds and Defined Contribution members called to action on climate change

by Carol A Adams The Chair of the British Government’s cross-party Environmental Audit Committee (EAC), Mary Creagh, has written to the Trustees of the country’s top 25 pension funds asking some probing questions about climate change risks, reporting of such risks and policy interventions on climate risk reporting. This is an important, if belated, development […]

Bringing to life the value creation process in corporate reporting

by Kerry Hicks, Senior Policy Advisor, Australian Institute of Company Directors The reporting process should be seen as an investment which can bring huge rewards, says Dr Carol Adams. This interview with Carol Adams was first published by the Australian Institute of Company Directors here Dr Carol Adams is an author, consultant and Non-Executive Director […]

How accounting and reporting can grow sustainable finance

by Carol A Adams How can the financial sector support a more sustainable and inclusive economic system which is low carbon and resource efficient?  This question was tackled by a European Union (EU) ‘High Level Group of Experts’ in a report published last month. It notes the increasing relevance of sustainability information for investors and […]

Corporate Governance Code consultation tackles the big issues

by Carol A Adams Ethnic diversity, the UN Sustainable Development Goals, wider stakeholder interests and encouraging a longer-term focus are some of the issues considered in the UK Financial Reporting Council’s (FRC) consultation on the revision of the Corporate Governance Code. Elsewhere many corporate governance codes are yet to address these issues and, whilst the […]

UK Financial Reporting Council consults on non-financial reporting

by Carol A Adams The UK’s Financial Reporting Council (FRC) has responded to the incorporation of the EU Directive on non-financial information into the UK Companies Act by amending its guidance on the Strategic Report.  UK companies with more than 500 employees are required by law to prepare a Strategic Report and now, across the […]

New approach for businesses seeking to contribute to the SDGs

by Carol A Adams My report outlining a new approach supporting businesses looking to contribute to the achievement of the Sustainable Development Goals (SDGs) has been published today by the International Integrated Reporting Council (IIRC) and ICAS (the professional accountancy body), in partnership with the Green Economy Coalition. While overall responsibility for the SDGs lies […]

Narrative reporting for financial reports – risk and governance

This second post on narrative reporting for financial reports, focuses on contemporary discussions on: Risk reporting (market, credit, liquidity and estimation risks) Governance reporting Environmental, Social and Governance (ESG) Risk Reporting It briefly sets out where narrative disclosures could be improved – and why they should be. Risk reporting (market, credit, liquidity and estimation risks) […]