Ethics and Sustainability Reporting Analysis
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Word count requirements
The word count for this assignment is 1500 words.
You must state on the front of your assignment the number of words used and this
will be checked.
The main text for this assignment must be word-processed in Times New Roman,
Font 12, double spacing, minimum 2cm margins all around.
You must observe the word count specified in this assignment brief. The
School has a policy of accepting variations to the recommended word count of
plus or minus 10%.
What does this mean for you?
Markers will mark your work up to the word count maximum plus 10% and then will
stop marking; therefore all words which are in excess of the word count plus 10% will
not be marked.
Where your word count is more than 10% below that specified, it is likely that this will
result in a lack of analytical depth or relevant content which will be reflected in the
mark assigned.
What is in the word count?
The word count includes:
–
the main text, including in-text reference citations and quotations.
The word count does not include:
– Appendices. These may be used to include supporting data which may be
too detailed or complex to include as a Table. They are not a device to
incorporate material which would otherwise cause you to exceed the word
limit.
– Title page
– Contents page
– Abstract/executive summary
– Tables, figures, legends
– Reference lists
Page 1 of 4
– Acknowledgements
Question Part B
You are a freshly recruited environmental consultant. Your line manager has
identified a potentially lucrative client for your firm and tasked you to evaluate the
current state of climate-related financial disclosures, as defined by the Taskforce on
Climate-Related Financial Disclosures (TCFD). You have been asked to critically
evaluate and compare your potential clients level of TCFD disclosures with that of a
key competitor and to identify areas of improvement.
In order to undertake the task you have directed you to the TCFD web site, where
further information can be found. Furthermore your manager requested that you
familiarise yourself with Section C (Recommendation and Guidance) of the Final
Report (June 2017) of the TCFD, as well as the Implementation Guidance report
(Sections A – C). You manager has supplied these to you.
End of Assessment question
Guidance:
?
?
?
?
?
?
?
You are to undertake the analysis on the set of two companies chosen from
the supplied list.
Within the word count you are to include an executive summary, which clearly
states which companies were compared and your final evaluation. A structure
template is available online.
Include tables, charts and images to support your analysis and
recommendations.
The format of the analysis has been discussed during your workshops and
you should apply the analysis grid to your set of companies to compare the
relative level of disclosures.
There is no indicative reading beyond the documents listed in the task.
There is no requirement to include a reference list unless references, other
than the ones above, have been referred to.
You are advised to include academic references in your assignment to
support your arguments and analysis.
Page 2 of 4
Student number:
Generic criteria
G1
Presentation
G2
Theory and
literature review
G3
Analysis and
problem solving
G4
Structure and
argument
G5
Conclusions
G6
Correctness of
referencing
Module title: Ethics & Sustainability
Reporting Part B
Module specific learning outcomes
S1 Explain, with reference to business and society
relations, how sustainable development, CSR
and stakeholder theory, set the framework for
SER in practical and theoretical terms.
S2 Critically evaluate the historical development of
the different techniques developed and used to
measure and audit social and environmental
performance.
S3 Explain the origins and development of SER in
theory and in practice, in particular in the context
of globalisation.
S4 Evaluate the market-related and socially-related
arguments in favour of SER, and the impact of
SER on corporate performance, with
interpretation from practical cases.
S5 Evaluate the relationship between SER and
financial reporting, and investigate investors and
other stakeholders responses to SER.
S6 Evaluate the role of regulation in SER.
Comments on assessment criteria
Suggestions for
improvement
Date:
Marker:
Page 3 of 4
Chemical industry
You need to choose 2 out of the 5.
Sample firms:
BASF
Bayer
Evonik
Solvay
RoyalDSM
Consumer product
You need to choose 2 out of the 3.
Sample firms:
General Mills
Nestle
Unilever
Fashion
Sample firms:
Burberry
H&M
PAPER
Sample firms:
DS Smith
Mondi
Page 4 of 4
Recommended
Disclosure
Governance a)
Governance b)
TCFD Disclosure Compliance
Is item present: yes
(1) / no (0)
Compliance Level
# coded
sentences per
Quantity
# coded
sentences per
Quality
# coded
sentences per
Timing – Past
Aviva
Citi
Aviva
Citi
Aviva
Citi
Aviva
Citi
0%
0%
0
0
0
0
0
0
Does the company describe the boards or a board
committee’s oversight of climate-related risks or
opportunities?
Does the company describe managements or a
management committee’s role in assessing and
managing climate-related risks or opportunities?
Strategy a)
Does the company describe the climate-related risks or
opportunities the organization has identified?
Strategy b)
Does the company describe the impact of climate-related
risks and opportunities on the organization (e.g.
businesses, strategy, or financial planning)?
Strategy c)
Does the company describe the resilience of its strategy,
taking into consideration different climate-related
scenarios, including a 2°C or lower scenario?
Risk Management a)
Does the company describe the organization’s processes
for identifying and/or assessing climate-related risks?
Does the company describe the organization’s processes
for managing climate-related risks?
Does the company describe how processes for
identifying, assessing, and managing climate-related
Risk Management c)
risks are integrated into the organization’s overall risk
management?
Does the company disclose the metrics it uses to assess
Metrics and Targets a)
climate-related risks or opportunities?
Does the company disclose Scope 1 and Scope 2, and,
Metrics and Targets b)if appropriate Scope 3 greenhouse gas (GHG)
emissions?
Does the company describe the targets it uses to
Metrics and Targets c)
manage climate-related risks or opportunities?
Overall Compliance (%)
Risk Management b)
Firm 1
Firm 2
Name
Aviva
Citi
# coded
# coded
sentences per
sentences per
Timing – Present Timing – Future
# coded
sentences per
Risk
# coded
sentences per
Opportunity
# coded
sentences per
Policy
Aviva
Citi
Aviva
Citi
Aviva
Citi
Aviva
Citi
Aviva
Citi
0
0
0
0
0
0
0
0
0
0
Additional useful
information for
Notes
Aviva
Citi
Based on: Linsley, P.M., Shrives, P.J. (2006) Risk reporting: a study of risk disclosures in the annual reports of UK companies, B
Type of Data
Timing
Category of Disclosure
Choose 1:
TCFD Disclosure Compliance
Does the company describe the boards or a board
committee’s oversight of climate-related risks or
opportunities?
Does the company describe managements or a management
committee’s role in assessing and managing climate-related
risks or opportunities?
Does the company describe the climate-related risks or
opportunities the organization has identified?
Does the company describe the impact of climate-related risks
and opportunities on the organization (e.g. businesses,
strategy, or financial planning)?
Does the company describe the resilience of its strategy,
taking into consideration different climate-related scenarios,
including a 2°C or lower scenario?
Does the company describe the organization’s processes for
identifying and/or assessing climate-related risks?
Does the company describe the organization’s processes for
managing climate-related risks?
Recommended
Disclosure
Choose 1:
Quantitative Qualitative
Choose 1:
Past
Present
Future
Risk
Opportunity
Governance a)
Governance b)
Strategy a)
Strategy b)
Strategy c)
Risk Management a)
Risk Management b)
Does the company describe how processes for identifying,
assessing, and managing climate-related risks are
integrated into the organization’s overall risk management?
Risk Management c)
Does the company disclose the metrics it uses to assess
climate-related risks or opportunities?
Metrics and Targets a)
Does the company disclose Scope 1 and Scope 2, and, if
appropriate Scope 3 greenhouse gas (GHG) emissions?
Metrics and Targets b)
Does the company describe the targets it uses to manage
climate-related risks or opportunities?
Metrics and Targets c)
Total
Proportion of
Disclosures in Group
0
0
0
0
0
0
0
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
anies, British Accounting Review , 38, 387-404.
sclosure
Scenario Analysis
1:
Choose multiple if approporiate
“Policy” * Resilience Scenario
0
#DIV/0!
0
0
2°C or
lower
scenario
0
Risk Management Processes
Greenhouse Gas Emissions
Choose multiple if approporiate
Choose multiple if approporiate
Identify
Assess
Manage
Scope 1
0
Scope 2
0
Unspecific
Proportion
statement of
Scope 3 Subtotal
of Sub
Climate Change
Disclosures Disclosure within
Category
0
Total
0
#DIV/0!
0
0
#DIV/0!
0
0
#DIV/0!
0
0
#DIV/0!
0
0
#DIV/0!
0
0
#DIV/0!
0
0
#DIV/0!
0
0
#DIV/0!
0
0
#DIV/0!
0
0
#DIV/0!
0
0
#DIV/0!
0
0
0
#DIV/0!
#DIV/0!
0
Based on: Linsley, P.M., Shrives, P.J. (2006) Risk reporting: a study of risk disclosures in the annual reports of UK companies, Briti
Type of Data
Timing
Category of Disclosure
Choose 1:
TCFD Disclosure Compliance
Does the company describe the boards or a board
committee’s oversight of climate-related risks or
opportunities?
Does the company describe managements or a management
committee’s role in assessing and managing climate-related
risks or opportunities?
Does the company describe the climate-related risks or
opportunities the organization has identified?
Does the company describe the impact of climate-related
risks and opportunities on the organization (e.g. businesses,
strategy, or financial planning)?
Does the company describe the resilience of its strategy,
taking into consideration different climate-related scenarios,
including a 2°C or lower scenario?
Recommended
Disclosure
Choose 1:
Quantitative Qualitative
Choose 1:
Past
Present
Future
Risk
Opportunity
Governance a)
Governance b)
Strategy a)
Strategy b)
Strategy c)
Does the company describe the organization’s processes for
identifying and/or assessing climate-related risks?
Risk Management a)
Does the company describe the organization’s processes for
managing climate-related risks?
Risk Management b)
Does the company describe how processes for identifying,
assessing, and managing climate-related risks are
integrated into the organization’s overall risk management?
Risk Management c)
Does the company disclose the metrics it uses to assess
climate-related risks or opportunities?
Metrics and Targets a)
Does the company disclose Scope 1 and Scope 2, and, if
appropriate Scope 3 greenhouse gas (GHG) emissions?
Metrics and Targets b)
Does the company describe the targets it uses to manage
climate-related risks or opportunities?
Metrics and Targets c)
Total
Proportion of
Disclosures in Group
0
0
0
0
0
0
0
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
mpanies, British Accounting Review , 38, 387-404.
Disclosure
Scenario Analysis
se 1:
Choose multiple if approporiate
“Policy” * Resilience Scenario
0
#DIV/0!
0
0
2°C or
lower
scenario
0
Risk Management Processes
Greenhouse Gas Emissions
Choose multiple if approporiate
Choose multiple if approporiate
Identify
Assess
Manage
Scope 1
0
Scope 2
0
Unspecific
Proportion
statement of
Scope 3 Subtotal
of Sub
Climate Change
Disclosures Disclosure within
Category
0
Total
0
#DIV/0!
0
0
#DIV/0!
0
0
#DIV/0!
0
0
#DIV/0!
0
0
#DIV/0!
0
0
#DIV/0!
0
0
#DIV/0!
0
0
#DIV/0!
0
0
#DIV/0!
0
0
#DIV/0!
0
0
#DIV/0!
0
0
0
#DIV/0!
#DIV/0!
0
1
Based on Linsley & Shrives (2006)
To identify climate change disclosures a broad definition of climate change is to be
adopted as explained below.
2
Sentences are to be coded as climate-related risk disclosures if the reader is informed
of any risk, opportunity or policy or of any hazard, danger, harm, threat or exposure,
that has already impacted upon the company, is currently impacting upon the company
or may impact upon the company in the future or of the management of any such risk,
opportunity, policy, hazard, harm, threat or exposure.
3
The risk definition just stated shall be interpreted such that risks and opportunities and
related policies will be deemed to be contained within the definition.
4
Although the definition of climate-related risk disclosures is broad, disclosures must be
specifically stated; they cannot be implied.
5
The risk disclosures shall be classified according to the coding framework, and by
reference to the definition of terms. *
6
General statements concerning climate change, risk, opportunities and risk
management systems not covered by the recommended disclosure guidance within a
particular category shall be classified as unspecific statements of climate change.
7
Qualitative risk disclosures are those risk disclosures that either disclose directly the
unquantified impact of a risk or disclose sufficient information to enable the reader to
infer the unquantified impact of a risk. This includes relevant statements of policy
towards, describing, identifying, assessing or managing the risk.
8
Quantitative risk disclosures are those risk disclosures that either disclose directly the
(financial) impact of a risk or disclose sufficient information to enable the reader to
calculate the (financial) impact of a risk.
9
If a sentence has more than one possible classification, the information will be
classified into the category that is most emphasised within the sentence, unless the
sentence consists of two equally important halves, in which case the sentence is
counted within each category.
10
11
12
*
Tables, graphs or charts (quantitative and qualitative) that provide risk information
should be interpreted as one one sentence and classified accordingly.
If a disclosure is too vague in its reference to risk, then it shall not be recorded as a
risk disclosure.
Any disclosure that is repeated shall be recorded as a risk disclosure sentence each
time it is discussed.
Further examples can be found in Appendix 1 of the TCFD Implementation Guidance (p. 71ff).
Definitions
Policy
Opportunity
Risks
Statement of Intent or course of Action taken
CLIMATE-RELATED OPPORTUNITY refers to the potential positive impacts related to
climate change on an organization. Efforts to mitigate and adapt to climate change can
produce opportunities for organizations, such as through resource efficiency and cost
savings, the adoption and utilization of low-emission energy sources, the development
of new products and services, and building resilience along the supply chain. Climaterelated opportunities will vary depending on the region, market, and industry in which
an organization operates.
CLIMATE-RELATED RISK refers to the potential negative impacts of climate change
on an organization. Physical risks emanating from climate change can be event-driven
(acute) such as increased severity of extreme weather events (e.g., cyclones,
droughts, floods, and fires). They can also relate to longer-term shifts (chronic) in
precipitation and temperature and increased variability in weather patterns (e.g., sea
level rise). Climate-related risks can also be associated with the transition to a lowercarbon global
economy, the most common of which relate to policy and legal actions, technology
changes, market responses, and reputational considerations.
Scope 1 refers to all direct GHG emissions.
Scope 2 refers to indirect GHG emissions from consumption of purchased electricity,
GREENHOUSE heat, or steam.
Scope 3 refers to other indirect emissions not covered in Scope 2 that occur in the
GAS (GHG)
value chain of the reporting company, including both upstream and downstream
EMISSIONS
emissions. Scope 3 emissions could include: the extraction and production of
SCOPE
purchased materials and fuels, transport-related activities in vehicles not owned or
LEVELS
controlled by the reporting entity, electricity-related activities (e.g., transmission and
distribution losses), outsourced activities,
and waste disposal.
PUBLICLY AVAILABLE 2°C SCENARIO refers to a 2°C scenario that is (1)
used/referenced and issued by an independent body; (2) wherever possible, supported
by publicly available datasets; (3) updated on a regular basis; and (4) linked to
functional tools (e.g., visualizers, calculators, and mapping tools) that can be applied
2°C SCENARIO
by organizations. 2°C scenarios that presently meet these criteria include: IEA 2DS,
IEA 450, Deep Decarbonization Pathways Project, and International Renewable
Energy Agency.
RISK MANAGEMENT refers to a set of processes that are carried out by an
RISK
organizations board and management to support the achievement of the
MANAGEMENT organizations objectives by addressing its risks and managing the combined potential
impact of those risks.
STRATEGY refers to an organizations desired future state. An organizations strategy
establishes a foundation against which it can monitor and measure its progress in
reaching that desired state. Strategy formulation generally involves establishing the
STRATEGY
purpose and scope of the organizations activities and the nature of its businesses,
taking into account the risks and opportunities it faces and the environment in which it
operates.
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Explanation & Answer:
1500 Words
Tags:
financial disclosures
Ethics and sustainability
Financial Stability Board
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