Strategic Report
Governance Report
Financial Statements
Other Information
Summary disclosure against TCFD recommendations
In accordance with the recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”) and the FCA listing rule 9.8.6R(8), we are committed to providing transparent and comprehensive disclosures on how climate-related risks and opportunities impact our business. We are pleased to present our second report on climate-related disclosures which can be viewed in full on our website. We have a fiduciary duty on behalf of our clients to consider all long-term risks that may impact their investments. By integrating climate considerations into our business strategy, governance structures and risk management processes, we are ensuring the long-term resilience of our organisation whilst supporting the global transition to a low- carbon economy. The following table gives a summary of our material disclosures and directs readers to the relevant pages in this report. This summary disclosure is structured around the four pillars of the TCFD framework: governance, strategy, risk management, and metrics and targets.
Governance The Board’s role in oversight
The Board bears ultimate responsibility for the oversight and management of the business and is assisted in this by its Committees. During the year the Board and its Committees have received updates on climate-related matters, including an external presentation on climate- related risks and opportunities. In addition, the TCFD report has been reviewed by the Audit Committee and signed off by the Board. The regular monitoring of progress against climate goals and targets is delegated to the Investment Committee with the Co-CIOs able to escalate any matters that require further attention to the CEO directly. The Board has delegated overall responsibility for the delivery of the Group’s strategy to the Group CEO and the Executive Committee who have ultimate responsibility for the integration of climate risks and opportunities across the business, and for bringing climate- related matters to the Board. The Executive Committee delegates responsibility to a range of management committees that operate across the Group and are accountable for managing the areas of the business that may affect, or be affected by, climate change. Our view is that the Group is most vulnerable to climate risks through its investments. Operationally, we consider that the Group is most directly exposed to transition risk, with regulatory developments a more material issue for the firm than the physical risks of climate change. In future, the identification exercise will be developed and reviewed by the Executive Risk Management Committee (“ERMC”). We have conducted an annual assessment of the exposure of our investment holdings to physical and transition risks under multiple climate scenarios. The analysis confirms that an orderly transition is key to preserving value. To manage the physical climate-related risks facing our direct operations, we have an established Operational Resilience programme, and our key response to the transition risks facing our operations is our net zero by 2030 target. For our investments, we manage our climate-related risk through ESG integration, engagement and voting. This is outlined in the Risk Management section of the entity-level TCFD report.
Management’s role in assessing risks and opportunities
Strategy Climate-related risks and opportunities
Impact on our businesses, strategy and financial planning
Resilience based on scenarios, including a 2 o C or lower scenario
Brooks Macdonald Group plc Annual Report and Accounts 2024
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