We are supportive of the recommendations of the Task Force on Climate-related Financial Disclosures for better disclosure on climate, which aids the capital markets in appropriately assessing and pricing climate-related risks.
In FY22, we undertook a climate risk assessment to further identify our climate risks and assess their potential impact. Two workshops were held with subject matter experts across our divisions, to provide a common understanding of the trends on climate risk and regulations and to prioritise the climate risks that have the potential to have the most impact on our business. Through this process, we identified our universe of climate risks and opportunities that are the most material for our business.
Some of the key inherent risks – or the level of risk before actions are taken to alter the risk's impact or likelihood – identified included:
- Increasing investor preferences for climate leadership.
- Reputational damage from perceptions of greenwashing.
- The impact of climate change on investment performance.
- Impact of climate change on asset valuations.
We have controls in place to manage these risks and have developed a roadmap of ongoing work to continue to assess and manage climate risks and opportunities in our business.