Launched in November 2023, the TCS GoZero Hub harnesses the deep expertise of Macquarie researchers in climate risk management. This month it has launched a white paper to help businesses integrate climate risk considerations and meet the Australian Accounting Standard Board Climate Related Disclosures, a new sustainability reporting standard that requires companies to disclose information about climate-related risks and opportunities which could affect their performance.
Effective January 2025, the regulation encourages businesses to integrate climate risk into their core strategies and decision-making processes, making it a fundamental aspect of corporate governance.
The requirements will be phased in over time, starting with larger companies and eventually encompassing mid-tier and smaller businesses, ensuring that all businesses, regardless of size, comply with the new standards and embed climate risk management into their operations and governance structures.
The report, titled Value of Integrating Climate Risk Across the Business, says “climate change is no longer a distant threat, but a present reality that demands immediate attention”. It poses significant risks to business, not only through the impact of extreme weather and sea level rise, but through driving changes in markets and technology as well as new government policies and regulations, the paper says.
As well as outlining specific requirements of the new standard, the paper offers business a more general rundown on managing climate risks with advice on identifying, analysing and responding to them. It also says that climate change offers opportunities to business as well as risk. “In many cases responding to climate-related risks can unlock value,” the paper says.
Climate change is no longer a distant threat, but a present reality that demands immediate attention.
Associate Professor Abhay Singh, Director of Macquarie University’s Centre for Corporate Sustainability and Environmental Finance, said while the paper would give businesses valuable information about specific climate requirements, such as the AASB S2 accounting standards, the TCS GoZero Hub has a broader purpose to present the “whole picture around enterprise risk management and how climate risk management can be integrated from a value generation perspective to achieve the net zero targets”.
“This report highlights Macquarie University’s research capabilities in climate risk management, modelling, reporting and sustainability. We want to be able to help the industry integrate climate risk considerations into their business to create a positive impact on achieving a sustainable future,” he said.
The Hub will also assist Macquarie students who are studying climate risk. Professor Singh said business students were working on issues such as how climate change considerations and regulation affect the finance industry, the stock market and businesses in general.
The TCS GoZero Hub has five core themes - energy transition, carbon management, a nature positive future, the circular economy and sustainable waste management, and climate adaptation and resilience.
Professor Singh said The Hub would draw on Macquarie University’s broad capabilities. “Not just in publishing high-quality research papers, but also working with industry where we can come up with white papers which can guide industry practice,” he said.
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Macquarie University Vice-Chancellor Professor S. Bruce Dowton said the partnership with Tata Consultancy Services (TCS) to form the GoZero Hub would amplify the university’s impact “as we help to address the global decarbonisation challenge and create a more sustainable, just and equitable society."
Michele Lemmens, TCS Asia Pacific Head of Business Sustainability, said the report offers business leaders pragmatic insights on the advantages of approaching climate risk through a business-led, value-driven lens.
"Moving beyond compliance, to a comprehensive integration of climate-risk initiatives into business strategies and decision-making processes helps companies effectively tackle climate change and also generate improved business outcomes for stakeholders.
"Empowering organisations to achieve their net zero goals resonates with TCS’ core value of leading change.”
Associate Professor Abhay Singh, pictured, together with Macquarie University colleagues Associate Professor Laura Luo, Associate Professor Clara Zhou and Helena Hurley co-authored the white paper alongside Tata Consultancy Services co-authors Michele Lemmens, Malcolm K Shroff, Richa Chowdhary Shah and M. Indira Priyadarsini.
Find out more: TCS GoZero Hub in partnership with Macquarie University
