Uniac - July 2022

11 will have to navigate (e.g., energy usage cap and trade systems). The latest IPCC report suggests that we are already experiencing moderate risk of water scarcity in Southern Europe, with this anticipated to rise in Norther Europe in the foreseeable future. The HE sector needs to mature its approach to climate and sustainability risk in line with evidence based projects and action. There is an opening to balance these risks with significant opportunities, which could protect providers, and even increase reputation and standing. • Early adoption of leading low carbon tech may lead to increased investment and research credibility • Low carbon tech may lead to future cost efficiencies in strained markets • Early adoption and engagement with key initiatives may help providers shape emerging policy to ensure mutual benefit • Climate resilience planning may not only protect assets but increase valuation if physical risks develop sooner We anticipate that to meet the UK’s 2038 target for net zero, new legislation will have to be enacted, and soon. We’re starting to see early indications of this, such as the introduction of Climate Related Financial Disclosures, which will affect some UK providers (including UK public interest entities – which means it could be applicable for some HEIs in the sector). The regulations are due to come in for financial reports produced after 6th April 2022. Notably, these will include mandatory reporting of: - Company governance arrangements for assessing and managing climate related risks and opportunities - A description of how risks and opportunities are identified - A description of how these are integrated into overall risk management processes - A description of these risks and opportunities and the time periods by which they are assessed - A description of the actual and potential impacts of these risks on company operations - An analysis of the company resilience relating to these risks - A description of the associated targets and performance measuring - A description of supported KPIs, and how these are calculated Opportunities Legislating for change