29 Virtual Brochure – February 2024 E) Climate change and environmental sustainability. Risks related to climate change and environmental sustainability fell furthest in the 2024 ECIIA survey, but respondents expected the risks in this area to increase very substantially over the next three years. This is in part driven by rigorous new reporting requirements in the EU’s Corporate Sustainability Reporting Directive, as well as the challenges of decarbonisation, the need to manage the consequences of more extreme weather, and the need to mitigate financial and reputation risks. The lack of good quality data on organisational sustainability performance is a common issue. In the UK, debate is ongoing about strengthening regulation, while the Financial Reporting Council is reviewing the corporate governance code to recognise the growing importance of environmental, social and governance reporting. Considerations for HE 2023 saw the publication of a major report on accelerating net zero in the HE and FE sectors4 which highlighted that the sector’s 4 https://www.queensanniversaryprizes.org.uk/wpcontent/uploads/2023/01/Accelerating-towards-Net-Zero.pdf emissions are equivalent to those of a small country and that institutions are “at different stages towards decarbonising and building resilience for a warmer, riskier operating environment”. Subsequent analysis5 found that only 4% of institutions have undertaken any scenario modelling of the impacts of climate change on strategy and finances, with many struggling to get to grips with quantifying and addressing travel, waste, and supply chain net zero challenges. In our risk analysis we noted that there are still a substantial proportion of institutions who choose not to recognise environmental sustainability as a strategic risk. We suggest that institutions should reflect on this, given the challenges of reaching net zero on time and the increasing likelihood of additional regulation and reporting in the UK. Issues to consider: - Are climate change and environmental sustainability risks adequately reflected in your institution’s planning and risk management activities? - Do new EU reporting requirements impact any of your European activities, including access to research funding? - How do you obtain assurance of the validity of climate related data and KPIs, including across supply chains and partners? 5 https://sums.org.uk/app/uploads/2023/10/Integrating-climate-intostrategy-and-planning-in-universities_vf.pdf
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