December 1, 2022
How climate-related financial disclosures can strengthen your company
Supply chain disruptions. © Adobe Stock Images / Pavel

The Swiss Federal Council confirmed last week the adoption of the ordinance on mandatory climate disclosures. Climate disclosures will become mandatory for large companies as of 1 January 2024 and reporting standards will need to comply with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Public reporting on climate issues is applicable to public companies, banks, and insurance companies with 500 or more employees and at least CHF 20 million in total assets or more than CHF 40 million in turnover.

The TCFD recommendations outline the types of information that companies will need to disclose to support investors, lenders, and insurance underwriters in appropriately assessing and pricing specific risks related to climate change.

CelsiusPro is one of the Swiss forerunners supporting the TCFD Recommendations. Our Climate Risk Insights and Solutions (CRIS) team is specialized in TCFD reporting and climate risk assessments, including scenario analysis. We provide company- and portfolio-specific insights into physical climate-related risks and help our corporate clients set up a strategy for financial climate resilience.

In collaboration with HCM International Ltd., a consulting firm with decades of cross-industry experience in advising supervisory boards and executive boards, CelsiusPro’s CRIS team authored a whitepaper entitled “How to back climate action and reporting with appropriate governance and incentives?”.

In order to further reinforce the incorporation of physical climate risk into Swiss companies’ risk reporting, exposed companies will need to set up appropriate governance structures and targets. The forward-looking aspect of TCFD disclosure makes it a powerful instrument for internal decision-making and external stakeholder engagement on climate-related financial risks and opportunities.

“Overarching suggestions as to how these goals can be achieved are outlined in our whitepaper,” explains Samuel Brown, Head of CRIS at CelsiusPro. “Our expertise in climate-risk assessment is key in helping our clients increase readiness for and resilience to climate exposure.”

“We are happy to announce our collaboration with CelsiusPro, one of the leading climate-risk and NatCat InsurTech companies,” says Claudia Wuerstle, Senior Manager & Sustainability Lead at HCM. “Our expertise in the strategy, governance, and incentive areas paired with the competence of CelsiusPro in the areas of climate risk reports and climate risk transfer products optimally supports clients to better understand climate data and integrate the respective insights into actionable initiatives.”

HCM International is one of the leading consulting firms focusing on corporate governance, sustainability/ESG, leadership and performance management, and compensation. In the area of ESG, they specialize in the development of ESG strategies - from the definition of ESG focus areas and the implementation of appropriate governance processes, to the consideration of ESG issues in performance management and compensation.

Read more in our whitepaper, produced in collaboration with HCM, by clicking on the link below. For more detailed information, please contact us using this contact form.