Climate-related financial disclosures have become increasingly important as global regulatory frameworks continue to evolve in response to environmental risks. The Task Force on Climate-related Financial Disclosures (TCFD) and the International Sustainability Standards Board (ISSB) have established standards to guide companies in disclosing climate-related risks and opportunities. These disclosures are crucial for investors, regulators, and other stakeholders to assess the financial implications of climate change on businesses. As a result, companies are under pressure to enhance their transparency and reporting practices.

Client’s Background

The client, a leading financial institution, sought to enhance its climate-related financial disclosures to comply with emerging regulations and improve stakeholder trust.

Challenges

Regulatory Compliance

Ensuring adherence to TCFD and ISSB standards while keeping up with evolving regulations.

Data Collection

Gathering accurate and comprehensive climate-related financial data from diverse sources.

Risk Assessment

Identifying and assessing climate-related risks across various business segments.

Stakeholder Engagement

Communicating complex climate disclosures effectively to diverse stakeholders.

Operational Integration

Integrating climate risk management into existing operational processes and systems.

Solutions

Regulatory Analysis: Infiniti conducted a thorough analysis of TCFD and ISSB standards to guide the client’s compliance efforts. This included identifying key disclosure requirements and developing strategies to meet them.

Data Analytics: Utilized advanced data tools and methodologies to collect, analyze, and validate climate-related financial data. This ensured the accuracy and reliability of the data used in disclosures.

Risk Assessment Framework: Developed a tailored framework for identifying, assessing, and prioritizing climate-related risks. This framework helped the client understand and manage risks more effectively.

Stakeholder Engagement Strategy: Created a comprehensive plan for communicating climate disclosures to stakeholders. This included developing clear messaging, selecting appropriate communication channels, and engaging with stakeholders proactively.

Operational Integration Support: Assisted the client in integrating climate risk management into existing operational processes. This involved training staff, updating policies, and ensuring that climate considerations were embedded in decision-making processes.

Business Impact

Enhanced Compliance

Successfully aligned disclosures with TCFD and ISSB standards.

Improved Data Quality

Enhanced accuracy and reliability of climate-related financial data.

Risk Management

Strengthened ability to identify and manage climate-related risks.

Stakeholder Trust

Increased transparency and trust among stakeholders.

Operational Efficiency

Streamlined processes for climate risk management.

Conclusion

Infiniti helped the client enhance its climate-related financial disclosures by providing regulatory insights, data analytics, and strategic support. This collaboration improved compliance, data quality, risk management, stakeholder trust, and operational efficiency, positioning the client as a leader in sustainable financial practices.