As the Transition Plan Taskforce (TPT) published its Final Disclosure Framework last October, organisations are starting to sound off on the many hardships relating to their net-zero ambitions.
A recent survey among Airmic members revealed that 52% of organisations encounter difficulties in converting their climate transition goals into tangible actions, primarily due to insufficient data and budget constraints.
The TPT’s publication of said framework was aimed at assisting organisations in crafting a climate transition strategy.
Additionally, a survey by KPMG last year indicated that 27% of participants identified “Building the business case” as the most challenging aspect of developing and implementing climate transition plans. That said, this issue was not highlighted by any respondents in the latest Airmic survey.
Hoe-Yeong Loke, head of research at Airmic, emphasised the importance and business rationale of having a climate transition plan, citing strategy and sustainability as key benefits.
“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,” Loke said.
Moreover, Loke mentioned the challenge Airmic members face in securing capital expenditure for projects aimed at meeting climate targets within specified deadlines.
In response to these challenges, Airmic plans to develop guidance on climate transition plans to better support its members and the broader risk management profession.
Besides climate ambitions, cyber incidents, including ransomware attacks, rose as the preeminent risk for organisations associated with Airmic members in 2024.
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