Environment
TCFD Climate related financial disclosure in line with TCFD guidelines This is NCC Group’s first year reporting against the Task Force on Climate-Related Financial Disclosures (TCFD) requirements. In line with listing rule 9.8.6R(8) we have produced TCFD disclosures which are consistent with the TCFD recommendations and recommended disclosures across the governance, strategy, risk management and metrics and targets pillars. In assessing whether the disclosures are consistent, we have referenced section C of the TCFD Annex entitled ‘Guidance for All Sectors’. For strategy we comply with disclosures (a) and (b) but for (c) we need to map out our net zero journey and review our scenario analysis and assess the resilience of NCC Group against our risks. This further work is included as a target below and will be published in next year’s TCFD report. Furthermore, for each pillar we have included a table which describes our current disclosure, our developments achieved in FY22 and our focus areas for FY23.
Our overall exposure to physical and transitional climate change is considered low due to the nature of the business and can be reduced through the strategy and journey we’ve outlined over the next few pages. The scenario analysis for physical risks (flooding, earthquakes and storms) does not pose a high risk as there are mitigating controls in place and business interruption would not be significant. We are working with Planet Mark, a sustainability certification organisation, which has calculated and verified our carbon footprint and helped us to identify reduction targets for the next financial year. Through the course of our new financial year, we will also work with it to map how we will achieve net zero by 2050. It is worth noting that alongside the risks identified we have a significant opportunity as the market develops and industries invest more in climate change. For example, we currently work with customers which specialise in developing technology for electric vehicles, renewable energy (wind and solar), operational technology and other technical application work. There is an opportunity to increase revenues in these expanding areas as technology develops to support more climate related initiatives.
Governance
NCC Group disclosure
Developments in FY22
Focus areas for FY23
TCFD recommended disclosure
Governance
• The Board takes overall accountability for the management of climate related risks and opportunities and considers them as part of its overall risk review processes • The Board gets updates from the Director of Sustainability and Corporate Affairs, who is part of the Executive Committee
• The Enterprise Risk Management Committee, which meets quarterly, has reviewed climate related risks and opportunities and this will be cascaded up to the Board as required • Decision made to appoint external specialists Planet Mark to assist with our carbon footprint calculation, net zero journey and colleague engagement • The ERM Committee and a TCFD working group were established to ensure progress was made • Engaged with external specialists Planet Mark to give support as we calculate our carbon footprint and determine our net zero journey
• Further Enterprise Risk Management (ERM) Committee meetings and
A. D escribe the Board’s oversight of climate related risks and opportunities.
recommendations made to the Board as appropriate including progress to map out our net zero journey
• The Director of Sustainability and Corporate Affairs advises both the Executive Committee and Board on climate related issues • An ERM Committee was established in 2021, which meets quarterly and covers climate risk
• To maintain the climate related risk register and ensure actions are followed up • To map NCC Group’s net zero journey
B. D escribe management’s role in assessing and managing climate related risks and opportunities.
NCC Group plc — Annual report and accounts for the year ended 31 May 2022
39
Made with FlippingBook Online newsletter maker