52% OF ORGANISATIONS FACE CHALLENGES TRANSLATING CLIMATE AMBITION INTO ACTION

Gathering Scope 3 emissions data a ‘mammoth undertaking’

Fifty-two per cent of organisations face challenges translating their ambitions around their climate transition plans into action, a survey of Airmic members this week revealed. The lack of data and budget were cited as the key factors.

This comes as the Transition Plan Taskforce (TPT) released last October their Final Disclosure Framework to guide organisations in developing a climate transition plan.

While a KPMG survey last year showed that 27% of respondents found “Building the business case” the most difficult in developing and implementing their climate transition plans, no respondent selected that option in the Airmic survey this week.

Hoe-Yeong Loke, Head of Research at Airmic, said: “Climate transition plans are not only an imperative for organisations today – it makes good business sense to have such a plan from the perspective of strategy and sustainability for the organisation.”

While there are opportunities for organisations that have embarked on climate transition, they are nevertheless facing pain points which have meant that their climate ambitions have taken some time to translate into action.

Hoe-Yeong Loke added: “Our members say it is a ‘mammoth undertaking’ to understand the full carbon impact throughout their supply chains – so-called Scope 3 emissions – let alone ensuring compliance by all their suppliers and stakeholders. At times, they have had to rely on low-quality data from their supply chain partners, or have had no option but to make estimations based on third-party sources such as industry averages.”

“Generating capital expenditure, to fund projects to meet climate targets within set time frames, has also proven to be a challenge for Airmic members.”

Airmic will be looking to produce guidance on climate transition plans to better support Airmic members and the risk profession.

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We will be sharing the results of the Airmic Big Question with the press weekly.

Media contact: Leigh Anne Slade
Leigh-Anne.Slade@Airmic.com
07956 41 78 77