A new report by the Investment Association (IA) and Big Four accountancy firm Deloitte outlines how asset managers’ risk and compliance functions can aid in their transition to net zero. It spans six key themes: credible net zero plans, governance, culture and incentives, climate risk management, greenwashing, treatment of customers, and a holistic consideration of ESG. The report recommends a collaborative approach on risk and compliance functions within an organisation, which can improve the ability of investment managers to unlock and harness opportunities while minimising risks associated with the transition. The report’s other recommendations to risk and compliance include advising the wider firm on regulations, expectations and guidance on transition plans, identifying and integrating climate risks into the risk management framework, and ensuring the climate risk management strategy is aligned with the transition plan. Paul Scaping, IA’s Public Policy Specialist, said: “Investment managers have an important role to play in reaching a net zero economy and many firms have joined governments and other corporates in making commitments to reach net zero. Like all other functions, it is important that risk and compliance teams are equipped to support these commitments, hit climate goals and meet client expectations.”
Our new report with @Deloitte, looks at the importance of risk and compliance functions in the transition to net zero and why they are well positioned to help prepare firms for the future.
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— The Investment Association (@InvAssoc) July 13, 2022