Ag419 Week 5 Lecture 5 - Sustainable Development And Climate Related Risks Questions And Answers

Ag419 Week 5 Lecture 5 - Sustainable Development And Climate Related Risks Questions And Answers What are the 3 roles of accounting? 1. Measurement 2. Reporting 3. Performance management Where does the subject of the research emerge from? Problems being faced (rather than the interests of accounting scholars) What is the second hallmark of sustainability science? Those affected by problems are full partners in the research (i.e., the work is trans-disciplinary) What 3 characteristics mark the role of accountants in this context? 1. Refocusing on risk mitigation and adaption, economic fairness 2. Putting ecological responsibility back into the heart of analysis 3. Renewed focus on the responsibilities of higher education What have the SDGs led to a need for? New forms of risk assessment and accounting interventions What has PwC developed? SDG Selector and SDG Navigator How has BT (2016) incorporated SDGs into their GRI Index? They have "used the SDG Compass tool to map our response and increase transparency" - relevant SDG(s) for each item in the GRI index What does GRI stand for? Global Reporting Initiative Which 8 of the 17 SDGs did the International Federation of Accounting (IFAC) identify that accounting could contribute to the most? Goal 4 Goal 5 Goal 8 Goal 9 Goal 12 Goal 13 Goal 16 Goal 17 How many members does IFAC have? 3 million What 3 things has the accounting profession been quick to comprehend about SDGs? 1. Their importance and potential 2. Substantial engagement by business with the SDGs 3. The role accounting profession can play in pursuing meaningful action within the SDG framework What 3 Ds must be considered relating to climate change? Definition Data Disclosures Give examples of 5 questions you should ask to assess if the Board is taking climate change seriously 1. What does climate change mean to the organisation 2. How are they framing climate change - purely to meet regulatory requirement? Because they have made net-zero commitments? Is it aligned to their science-based target? 3. How is it feeding into long-term resilience? 4. Are they walking the walk? 5. Are they measuring what they are doing? 6. Can they show that trajectory or pathway that can look at the future? 7. Are they sharing that information publicly? Can that be accessed? How much info can be accessed? 8. How confidently and truthfully can BOD speak to that topic? What kind of risks and opportunities should be recognised by your management? Identification of material sustainable development risks and opportunities relevant to long-term value creation for organisations and society. What does materiality (as in reporting) mean? Give 2 points 1. Means that the organisation in dialogue with stakeholders identify what matters and then it chooses to report on that 2. How critical decisions are made, in particular, the way our evidence and knowledge comes into play What does TCFD stand for? Task Force on Climate-Related Financial Disclosures In order to mitigate sustainable development risks, what do financial markets need? Clear, comprehensive, high-quality information of the impacts of climate change. What does this include? The risks and opportunities presented by rising temperatures, climate-related policy, and emerging technologies in our changing world What has the TCFD developed a framework for? Helping public companies and other organisations more effectively disclose climate-related risks and opportunities through their existing reporting processes. What are the 4 components of this framework? 1. Metrics and targets 2. Governance 3. Strategy 4. Risk management What does metrics and targets entail? Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material. What does governance entail? Disclose the organisation's governance around climate-related risks and opportunities What does strategy entail? Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation's businesses, strategy, and financial planning where such information is material What does risk management entail? Disclose how the organisation identifies, assesses and manages climate-related risks The board's governance and around sustainable development risks and opportunities should be what 2 things? 1. Transparent 2. Clearly communicated Why should there be oversight processes? To integrate sustainable development consideration in to the organisation's operations/processes How many countries (and self-governing territories) and companies have made commitments to achieve net zero GHG emissions by 2050? Nearly 130 countries (and self-governing territories) and almost 8,000 companies. Based on current policies and commitments, what warming is the world headed toward? Well above 2 degrees Celsius