Over 60% of Indian firms can identify, manage climate-related market risks, finds study
Companies in India are increasingly aware of its financial impact, but a new analysis by a global advisory firm suggests that many lack the tools to manage climate risk. A large number of Indian companies listed on stock exchanges - 61 per cent - have the mechanisms in place to assess, identify and manage climate risk, found a new study by Willis Towers Watson. Businesses need the right expertise in managing climate risks, a conducive regulatory environment and better data availability to undertake climate-related financial reporting, according to the study. The firms require a system to monitor their carbon footprint as well as proof them against future climate risks for this. The WTW tool can help assess physical and transition risks for companies and can also generate tailored insights for reporting disclosures related to climate, said a press release. "WTW has invested in data, expertise, and technology to develop the climate diagnostic tool. We have also developed an ecosystem of partners that allow companies to work together with the insurance markets on their climate transition plans," Head of India for WTW Vivek Nath said in the statement. The awareness level of these risks is up to the board and chief executive level, as 73 per cent of company leaders have oversight of climate, while 82 per cent of company boards have discussed climate risk to their business.