Dunham said: “A company’s response to climate-related disclosure requirements should be complementary to board level strategic discussions. For example, the Taskforce on Climate-related Financial Disclosures (TCFD) framework was designed to provide information to stakeholders relating to how climate-related risks and opportunities are likely to impact an organisation’s current and future financial position.”

“There is a growing body of evidence – see the Global Alliance for Banking Value annual report 2019 and MSCI annual report 2020, for example – that climate and sustainability performance, and financial performance, are intrinsically linked,” he said.

According to Dunham, companies that prioritise climate considerations in their operations, strategic planning and decision-making are more likely to experience positive financial outcomes over the long term. This is because they are better equipped to identify and manage material risks and opportunities, as action drives innovation and adaptation; navigate the ever evolving and increasingly stringent maelstrom of sustainability regulations, international standards and stakeholder expectations; and because customers and investors are also increasingly drawn to organisations that can demonstrate strong sustainability credentials.

Dunham said: “Integrating climate considerations into operational policies, processes and procedures can meaningfully reduce the reporting burden while enhancing the climate and financial outcomes. It is, however, important to also recognise the significant initial upfront cost required to establish these in-house reporting frameworks.”

Friel said: “In infrastructure, we are finding that the benefits of integrating climate risk and opportunities into organisational strategy go beyond raising capital and includes the ability to win contracts and reduce operational carbon in practice. The use of standardised reporting frameworks is an essential tool to cut through the significant noise on climate change and enable your clients, customers and investors to assess whether or not you really get it, compared to your peers.”

Climate change is rated third among the major factors that FTSE 350 companies see as contributing to increasing risk facing their businesses, behind cyber risk and global economic risks.