The Task Force on Climate-related Financial Disclosures (TCFD) was launched by Mark Carney, Chair of the Financial Stability Board (FSB) and Governor of the Bank of England, with the support of the G20. Its remit was to develop a set of voluntary, consistent and comparable recommendations for companies to use in disclosing information to investors, lenders and insurance underwriters about the impacts of climate change on their financial performance. The recommendations were published in June 2017 and the statement below reflects our first response for our UK business.
As a professional services firm, PwC is not in one of the priority sectors specified by the TCFD, but we do provide services to clients in each of them. As one of the members of the
We want to play our part in contributing to the targets agreed in the Paris Agreement of
Risks to our business relating to climate change, whether strategic or operational, are managed in the same way as other business risks, and in proportion to them, as part of our overall risk management systems.
Our Executive Board has oversight of our Purpose, which is to build trust in society and solve important problems. An element of this relates to our support for the transition to a low carbon economy. All climate-related metrics that the firm publishes in the Annual Report are independently assured each
The Executive Board is responsible for establishing systems of internal control and for reviewing and evaluating their effectiveness. These systems are overseen by our Risk Council, an Executive Board subcommittee which regularly reviews our business risks and approach to risk management. Our risk and quality teams work across our business on our professional services risk management systems.
As a professional services firm, PwC delivers tailored, industry-focused services and solutions for public and private sector clients, across our core lines of service - Assurance, Consulting, Deals
As a people-based
As such we have not identified any material physical risks to our business strategy relating to climate change in the short to medium term. On this basis, we have not
Through our specialist Sustainability & Climate Change (S&CC) practice, we are members of climate-related technical working groups and expert panels for key international forums that seek to address various aspects of climate change. As our clients increasingly consider the implications of climate change for their organisations, we have the opportunity to support them in the transition to a low-carbon economy through relevant offerings across our lines of service.
The Risk Council oversees the risk management strategy for our business on behalf of the Executive Board. There are systems of control at every level of the firm. These include our lines of service, which report on risks relating to their business areas. Our risk and quality functions oversee our professional services risk management systems. Additionally, we have firm-wide processes for reviewing new business, and a corporate affairs team which leads the firm’s efforts to track all changes in applicable regulatory regimes. We publish our principal business risks in our Annual Report each year. These are assessed based on their potential impact (financial or reputational) and
Potential physical risks relating to climate change are managed at an operational level through our business continuity management system that is certified to the ISO 22301:2012
Given the relatively low risk to our business we don’t currently use financial measures to assess climate-related risks. However, internally we track the performance of our S&CC business practice, including the investments we make in our provision of technical support to external bodies, and in the development of new perspectives, methodologies and services related to climate change.
Additionally, we track the operational savings from the investments we’ve made to reduce our reliance on fossil fuels and to operate our offices more efficiently. Between 2007 and 2017, these helped us to save almost £20 million in direct energy use, and £1.3 million in costs from the UK government’s CRC scheme.
In the financial year to 30 June 2018, our greenhouse gas emissions totalled 72,943 tonnes CO2e.
This breaks down as:
Scope 1: 1,214 tonnes CO2e
Scope 2: 3,628 tonnes CO2e (market based)
Scope 3: 68,101 tonnes CO2e
Having reduced the total carbon emissions (Scope 1, 2 & 3) from our operations by 29% between 2007 and 2017, we set new five-year reduction targets in 2018. These are:
We publish extensive information about our programmes to manage our performance against these targets on our website.