Redesigning interaction between companies and capital markets to accelerate transformation

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21 October, 2022


Insights from the CEO



Peter Bakker

  • Identifying, assessing and managing climate-related risks are key competencies for business and investment decision-making. But challenges remain in understanding potential financial impacts and making the connections with the balance sheet, cash flow, and income statement. 
  • The work of the International Financial Reporting Standards (IFRS) Foundation, ISSB, and their climate exposure draft, addresses the connection gap between climate-related risks and opportunities, financial position and financial performance. That link can flow through to valuation and truly catalyze finance to flow to climate solutions. We must turn ISSB into a global baseline of comparable and materiality-based disclosures. 
  • We need to move beyond disclosures of climate impacts. For business, the strategic response, pursuit of opportunities, transition planning, investment, and innovation are critical other elements that need to be integrated with the strategic climate scenarios that are part of the TCFD.