IEMA and IFoA publish updated User Guide to Climate-Related Financial Disclosures

22 February 2024

Extreme weather events around the world have highlighted the need for action on climate, and for climate-related risk and opportunity assessments to be more deeply embedded into financial markets’ operations. Take-up of disclosures is increasing and more jurisdictions across the world are mandating their adoption.

First published in 2020, this guide has been updated to cover the new and additional requirements of the IFRS Standards and TNFD recommendations. It is intended for all users of climate-related financial disclosures, providing new insights into understanding and using climate-related disclosures to help you get the most decision-useful information.

Wendy Walford, IFoA Sustainability Board, said: “Economic and investment decisions need to increasingly incorporate sustainability information, to understand the non-financial risks that enterprises are exposed to and how they are managing their position. This paper combines the sustainability skills and knowledge of IEMA experts with IFoA members specialising in financial risk management to provide a user-focused guide on how to make the best use of these disclosures, and respond to the evolution in reporting with a critical mindset.

“We hope this guide supports users of disclosures to feel confident in understanding and in applying the insights obtained, to support not only increased disclosures, but also their use in assessing how firms are adapting to our changing world, grappling with new opportunities and managing material risks.”

Sarah Mukherjee MBE, IEMA CEO, said: “When making any financial assessment of companies around the world, climate change stands out as both a potential risk and an opportunity . The more that companies disclose climate-related information, the more likely we are to drive business and industry towards net zero and encourage more sustainable practices within supply chains… The aim is to offer a valuable guide to help anyone better understand climate-related financial disclosures, as well as providing a helpful set of prompts to those working in this area.”

Read the guide

A User Guide to Climate-Related Financial Disclosures, February 2024 (PDF, 450 KB)

You can also read more about the updated guide on IEMA’s website.