ANNOUNCEMENTS
Human health and corporate operations are seriously threatened by climate change, which could also disrupt a company's value chain and bring about massive impact on the company’s finances. Climate change effects might be short-term, like temporary business closures brought on by cyclones or floods, or long-term, such as rising operational costs as a result of temperature changes. Businesses may have direct effects from physical asset loss or indirect effects from new laws and regulations. In order to lessen the effects of climate change, sustainable choices need to be adopted by companies, which must be a business imperative, through strategic planning, risk analysis as well as setting targets to reduce the activities which are harmful for the environment. Climate change risk assessments can be used as a tool to identify the most important climate-related hazards before developing strategies for adaptation or reduction at the corporate, national, and international levels. Such an assessment allows company to thoroughly understand the repercussions of climate change on the enterprise. To reveal climaterelated information, reporting frameworks like the ‘Carbon Disclosure Project’ (CDP) and the ‘Task Force on Climate-related Disclosure’ (TCFD) were created. In terms of the FMCG sector, the availability of raw materials, price swings, asset damage, and distribution disruptions are just a few of the risks this particular sector faces due to the rapid changes in the climatic patterns. This study evaluates the industry's current disclosure requirements for climate-related information and examines the physical climate-related risks that could impact Indian FMCG companies. In order to help businesses effectively adapt to climate change, this paper identifies the key climate change related risks which have the potential of impacting the FMCG industry and the problems associated with disclosures pertaining to climate related information disclosure and reviews relevant research to make suggestions for potential solutions.
KEYWORDS: Climate Change, Physical climate related risks, FMCG, Climate related Disclosures, TCFD reporting.
