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Preparing for action across your organization

clock 5 minute read

Just as investors focus on climate resiliency among portfolio companies, they also can take meaningful steps to make net-zero part of their own organizations. Such steps may include disclosing their greenhouse gas emissions and mapping out decarbonization targets.

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Making net-zero a central part of business strategy

Capital-markets participants from across the financial industry are disclosing their firms’ own greenhouse gas emissions and spelling out their carbon-reduction commitments. That may mean developing, adopting and monitoring strategies to reduce their firms’ carbon footprint and creating internal policies that prioritize environmental impacts. It might mean harnessing renewable energy in their operations, securing leases in green buildings and establishing a governance structure for addressing climate risks.

It also means disclosure. The TCFD offers companies and other organizations a framework for integrating climate-related financial disclosures within their existing reporting processes. It encourages organizations to disclose their direct and indirect greenhouse gas emissions as well as decarbonization targets the organization sets for itself. It reflects the reality that climate risk is financial risk.

How much goes into a net-zero commitment

Committing to net-zero is the result of much analysis and a series of of decisions. It’s also the start of a process, not the conclusion. Three leaders of MSCI’s effort to reach net-zero before 2040 — Diana Tidd, MSCI’s head of index and chief responsibility officer, Veronique Menou, head of corporate responsibility, and Joseph Gagliardi, head of corporate services, joined MSCI’s Perspectives podcast last April to talk about everything that goes into a net-zero effort.

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