Society

The Financial Stability Board, an international body formed by G20 leaders to make recommendations about the global financial system, established the TCFD to develop voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers and other stakeholders.

TCFD published the first draft global industry-led recommendations report for assessing corporate financial risks emerging from climate change in December 2016. Following consultation, the recommendations were finalized in June 2017 and submitted to the G20 leaders' summit. ERM was the only consultant formally engaged to support TCFD, helping to develop a scenarios-based approach that is central to its recommendations and published in the Technical Supplement, which we prepared.

Pressure is mounting on corporations for climate-related financial disclosure from investors, stock exchanges and governments. The TCFD recommendations are already being integrated into corporate reporting guidelines by major stock exchanges. Further endorsement by several G20 governments is expected by mid-2017.

“Due to the technically challenging and broad focus of its work, the Task Force also sought input from experts in the field of climate change, particularly in relation to scenario analysis. The Task Force engaged Environmental Resources Management (ERM) to inform its work by developing a technical paper on scenario analysis—The Use of Scenario Analysis in Disclosure of Climate-Related Risks and Opportunities. Several members of the Task Force, joined by representatives from 2° Investing Initiative (2°ii), Bloomberg New Energy Finance (BNEF), Bloomberg Quantitative Risk Experts, Carbon Tracker, CDP, and the London School of Economics and Political Science led a working group to oversee ERM’s technical considerations. A workshop was also held with experts from Oxford Martin School. Additionally, the International Energy Agency (IEA) provided input regarding how scenario analysis can be conducted and used.”

Excerpt from Final Report, Recommendations of the Task Force on Climate-related Financial Disclosures, June 2017

In February 2017, ERM began a 3-year sponsorship of RGS, the world-renowned learned society and professional body for geography. As a Corporate Benefactor, ERM provides both financial support and technical expertise to enhance and support RGS’s work with professional communities as a whole, and teachers in particular.

ERM’s initial focus is on supporting two RGS programs in areas of the UK where there are less advantaged schools with fewer resources for teachers and pupils.

ERM will provide a financial contribution as well as pro bono time through the ERM Foundation and volunteer time from employees.

ERM became a signatory of the internationally recognized PRI in FY17, demonstrating our commitment to providing, developing and promoting services that support our clients’ implementation of the six Principles regarding environmental, social and governance (ESG) issues into investment analysis and decision-making processes. PRI recently commissioned ERM to undertake a project to develop private equity reporting guidance on the principles, which will be published in 2017.

ERM joined the Campbell Institute at the US National Safety Council in FY17, an environmental, health and safety center of excellence built on the premise that protecting people and preserving the planet is integral to business excellence, and fundamental to operational and financial performance. ERM will be actively involved in the Institute to share our expertise and experience and further develop industry approaches to driving performance.

SPE is the largest individual-member organization serving managers, engineers, scientists, and other professionals worldwide in the oil and gas industry. In late 2017, ERM Partner Trey Shaffer will conclude his three-year term as a SPE’s Health, Safety, Security, Environment and Social Responsibility (HSSE-SR) Technical Director. As part of his role, Trey has helped industry decision-makers understand, anticipate and avoid non-technical risks in a number of key areas including climate change, sustainability and safety. In addition, he led a process to help SPE develop an HSSE-SR strategy which will guide the organization over the coming years.

ERM has been actively involved in WBCSD since we joined as a founding member in 1995. We have been leading contributors to some of its most important publications and initiatives. During FY17 we actively participated in a range of activities, including:

• Involvement in technical working group of the Reporting Exchange project (database of sustainability reporting requirements in different locations around the world)
• Case study included in the Forest products sector guide to the Social Capital Protocol
• “Which is the greater business imperative: water or carbon?” session moderated by ERM Chairman John Alexander at the WBCSD annual meeting in India
• Water tool implementation with clients in India

We are committed to the WBCSD WASH (safe water, sanitation and health) pledge to look at the practical actions we can take to ensure operations and sites within our control have access to safe water, hygiene and sanitation.

We are also involved in WBCSD regional networks in India and the United States.

Deon Wessels, Principal Consultant based in Cape Town, South Africa, participated in WBCSD’s Leadership Program in 2016. The focus for the year was on “Making Sustainable Development Relevant, Actionable and Scalable.” Our involvement in the Leadership Program helps our talented leaders gain skills, experience and knowledge. Alumni join a global network of business leaders who are ambassadors for sustainable development both within their companies and outside in broader society.

As a signatory of the UN Global Compact, ERM commits to do business responsibly by aligning our strategies and operations with Ten Principles on human rights, labor, environment and anti-corruption; and take strategic actions to advance broader societal goals, such as the Sustainable Development Goals, with an emphasis on collaboration and innovation. We are a signatory of the Women’s Empowerment Principles as part of our commitment.

This report serves as our Communication on Progress, an annual disclosure to stakeholders on progress made in implementing the Ten Principles of the UN Global Compact in the areas of human rights, labor, environment and anti-corruption.

View our UN Global Compact index for more detail on our progress in implementing the Ten Principles.

As a GRI Standards Pioneer, ERM is among the first to adopt the new GRI Standards. We continue to work with GRI as a GOLD Community member. In the United States, we are a GRI-certified training partner, and offer public and private courses designed for individuals and organizations interested in gaining a deeper understanding of GRI, sustainability strategies and reporting.