We have published our inaugural set of climate-related financial disclosures. This is a reporting requirement for central government departments.
We have published our inaugural climate-related financial disclosures in line with recommendations set up by the Task Force on Climate-related Financial Disclosures (TCFD).
TCFD aims to promote the effective management of climate-related risks and opportunities through high-quality disclosure.
Phased disclosures
Our TCFD disclosure is consistent with HM Treasury's TCFD-aligned disclosure application guidance which interprets and adapts the framework for the UK public sector.
The application guidance has been split into 3 phases with the first applying for the 2023 to 2024 reporting period. GAD chose to optionally disclose beyond what was required for phase 1.
TCFD recommendations
The TCFD recommendations are structured around 4 pillars:
- Governance - The organisation's governance around climate-related risks and opportunities.
- Strategy - The actual and potential impacts of climate-related risks and opportunities on the organisation's businesses, strategy and financial planning where such information is material.
- Risk management - How the organisation identifies, assesses and manages climate-related risks.
- Metrics and targets - The metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.
Governance
The main focus of phase 1 was the governance pillar. At GAD climate-related matters are deeply integrated into our organisation's operations, with the Board holding ultimate oversight on climate risk and strategy.
Our internal Climate and Nature Group is central to identifying and advancing climate-related opportunities, ensuring staff are equipped to manage climate risks. The group contributes to broader sustainability initiatives, including involvement with the Institute and Faculty of Actuaries' Sustainability Board and the Civil Service Climate and Environment Network.
Adapting to climate change
We are committed to limiting the extent to which we contribute to climate change. We therefore regularly review how we can best identify, assess and mitigate climate-related risks.
GAD actuary Will Stobbs, is co-Chair of the Civil Service Environment Network. He said: "Given our commitment to operating sustainably, we are pleased to have published our first disclosure in line with the recommendations of the TCFD.
"We are happy that our disclosure was able to go further than the minimum requirements for central government but still aim to enhance our disclosure in future reporting periods."
