Summary disclosure against TCFD recommendations
0-10 years
10-20 years
20+ years
Time horizon
Estimated impact
Market risk Investments: Assets with exposure to climate-related market risks may suffer poor performance during a transition to a lower carbon economy, affecting the Group’s portfolio returns and client outcomes. Investments: Climate change, net zero and associated regulatory developments drive client appetite for investment propositions that we do not provide, leading to lower revenue and poor client outcomes.
Medium
Medium
Medium
Medium
Medium
Technology Investments: As technology develops, asset-intensive firms such as those in automotive, manufacturing and utilities sectors may have large capital expenditures to upgrade equipment to align with efficiency requirements or to retain consumers increasingly interested in lower-carbon options. This could lead to increased costs, decreased revenues and decreased asset valuations. High Investments: As new technology is required to evolve and implement our responsible investment practices, this may lead to increased resource and expertise requirements, additional costs and operational challenges. High
High
High
High
Reputational Investments: Portfolio companies whose response to the climate challenge is perceived as inadequate could suffer decreased revenues and asset valuations. This in turn could negatively impact the Group’s AUM and revenue.
Medium
Medium
High
High
Investments: Clients feel misled by our responsible investment propositions, leading to lower confidence and reduced revenue.
Investments and operations: The risk that clients perceive our response to climate-related challenges as inadequate, leading to a loss in market share. High
High
Physical Risks
0-10 years
10-20 years
20+ years
Time horizon
Estimated impact
Acute Investments: Portfolio companies may face increased capital costs due to damage to infrastructure, increased insurance premiums, supply chain disruptions and impacted access to resources such as clean water. Operations: Buildings and supply chain are impacted by extreme weather and extreme heat caused by climate change. This could result in water shortages, limited employee travel, office inaccessibility and power outages that affect service delivery. Chronic Investments: Long-term shifts in climatic patterns may have wide-ranging impacts on the global economy and geopolitical tensions, leading to increased operational costs and potential disruption to commercial activity.
Medium
Medium
Medium
Medium
High
56 Brooks Macdonald Group plc Annual Report and Accounts 2024
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