We are seeing indications that climate change remains an institutional priority in the 2020 reporting season. This applies in a number of areas:

• Narrative reports: regulatory disclosure requirements for narrative financial report components continue to apply. As an economic 'black swan' event, COVID-19 illustrates the role of stress-testing and scenario planning as a risk management tool – itself a central plank of the recommendations of the G20 Financial Stability Board Taskforce on Climate-related Financial Disclosures (TCFD);
• Financial statements: the reasonableness and consistent application of material climate-related financial assumptions in financial statement accounting estimates is squarely relevant to financial reporting and audit;
• Mainstream investors: institutional investor expectations on corporate climate-related strategy and risk management accelerated sharply in 2019 and, having done so, are unlikely to regress significantly;
• Net zero strategy: Both 'activist' investors and, increasingly, mainstream institutional investors continue to place pressure on companies exposed to the economic transition to articulate their strategy for continuing to create value in a 'net zero emissions' world; and
• Regulators: Whilst central banks and financial regulators are moderating direct corporate engagement during the pandemic, their oversight of climate risk impacts and disclosures is continuing.

Download the report below to access our extended insights on corporate climate risk assessment and reporting expectations in FY20. It provides a useful resource for sustainability, finance and executive teams in their consideration of governance priorities beyond the immediate pandemic response.

Part II in our series on climate risk governance in a pandemic age will be released in the coming months: The 'Next Normal' – what next for climate risk governance and investment in a post COVID-19 world?