Reporting requirements: what do businesses need to know?
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MANAGING THE LEGAL ISSUES: A CHECKLIST
– Understand and manage legal issues associated with TCFD (or other relevant reporting standards), including obtaining legal advice on risk mapping exercises and stress testing – Monitor and respond to changes in the regulatory and litigation landscape, including impacts on directors’ duties or changes to financial disclosure rules or environmental laws – Implement compliance measures and deploy crisis management best practice in the event of a breach, including communications with regulators and third parties – Consider legal requirements and recommendations to address climate risks in all new projects and activities – Develop due diligence frameworks and review policies and procedures in relation to workforce, assets, operations and transactions
– Consider insurance coverage issues in light of climate-related exposure – Provide training to directors and officers on legal issues associated with climate risks – Review supply chains to identify potential sources of business disruption due to the physical impacts of climate change and to minimise scope 3 emissions – Review contracts with suppliers: are they bound to provide relevant information and held to appropriate climate-related standards? 56 – Focus on governance to embed best practice from the top down and align organisational culture with corporate goals
56 The Chancery Lane Project, with pro bono input from Clyde & Co and other law firms, is continuing to build an open library of clauses that can be added to commercial contracts: https://chancerylaneproject.org/get-drafting/
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