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We were able to support management in identifying key actions that would prepare the organisation for various sustainability-related reporting, focusing on how synergies between different regulatory frameworks could be utilised.
By recognising that there are several crossovers between the different frameworks, we were able to support the client in maximising the efficiency of actions and streamlining their sustainability strategy.
Outcome and benefits
Crowe's approach and activities
The client, an international Insurance Group needed an overview of the future reporting requirements for the group and to understand how best to meet increasingly complex and fast-moving climate and sustainability reporting requirements.
The client used our findings to create a targeted sustainability strategy, aligned to relevant regulations.
We were able to support management in identifying key actions that would prepare the organisation for CSRD reporting, focusing particularly on how to leverage synergies from existing reporting conducted. We provided a clear route map to compliance, with a structured and integrated action plan. By recognising that the ESRS requirements were arranged around a management system structure, we were able to provide practical insights into how to simplify reporting for the future so that this could be replicated.
Outcome and benefits
Crowe worked with the client’s teams to confirm which entities fell within scope, on both a stand-alone and consolidated basis, as well as reviewing their double materiality assessment. Crowe completed a detailed data and document review across the organisation’s European entities to populate an extensive gap analysis against their seven material European Sustainability Reporting Standards (ESRS). The gap analysis resulted in a number of recommendations which were grouped into action plans for presentation to management. We provided a further gap analysis against the five non-material ESRS standards, on an advisory basis, to inform potential future work plans.
Crowe deployed resources from across its network, using expertise from both its Spanish and UK practices, to address a broad set of in-scope ESG aspects.
Crowe's approach and activities
The client, the European division of a US insurance group, with multiple entities within the scope of the new European Union Corporate Sustainability Reporting Directive (CSRD), sought a partner to support putting together a compliance plan for public disclosure commitments.
The client's challenge
The client was in a position meet its CSRD reporting obligations as a result of our gap analysis.
CSRD gap analysis and route map
The materiality assessment enabled the client to prioritise their climate work with the confidence that they had their arms around everything, and that they were focussed in the right areas. A top-down view also supported decision making in respect of resourcing and their operating model.
Outcome and benefits
Key activities undertaken included:
Crowe's approach and activities
Crowe worked with a Lloyd’s managing agent to undertake a climate materiality assessment, identifying the areas of significance to their business and stakeholders.
The client's challenge
By taking a holisitc approach, we provided a clear understanding of key sustainability issues.
The client was provided with an extensive training pack. Everyone was given confidence and key discussion points to begin talking to clients about sustainability. The training was structured and contributed to internal training and CPD.
Outcome and benefits
The client also requested for half the session to be focused on the climate risks and opportunities faced by their own clients, to support client-facing colleagues in their credit assessment and client conversations.
Crowe developed a tailored two-hour training session to encourage the bank’s staff to apply the knowledge to their own roles. A bespoke final quiz was also provided and used by the HR team to monitor CPD and progress made.
The Crowe team engaged with the client to understand the relevant business activities and reviewed the client’s own sustainability policies and reports to ensure that the training was tailored. The final training syllabus was then agreed with the client and followed the below structure:
Crowe was engaged by a bank to support their team in developing and leading in-person climate risk training, providing both an overview of the topic and sector-specific training to client-facing employees. The aim of the training was to provide the teams with knowledge of climate risks and opportunities to support their everyday decision-making and conversations with their clients.
We provided a bespoke and sector-specific training to help understand how climate will impact their business.
Climate risk training
We were able to support management in positioning their climate strategy with the Board and ensuring that had put in place the critical mitigation plans to ensure they could gain Board endorsement to proceed.
At the same, the analysis helped to identify some key proactive steps that could be taken so the business could secure a number of climate-related opportunities that were potentially not open to some peers, opening up areas of competitive advantage.
Outcome and benefits
Crowe supported them in revisiting their climate strategy in order to be more confident in taking a proactive stance, enabling it to secure transition-related opportunities and reposition its brand accordingly.
Crowe reviewed and challenged the client’s internal and external reporting, and identified over 25 associated risks. By considering the brand impact on nine key stakeholder groups, the risks were ranked in terms of their potential up-side or down-side impacts. Each risk was also ranked in terms of priority for action based on whether it sat within risk appetite.
By focusing on top five opportunities and top five threats, we were able to support the client in identifying areas where they could adopt a bolder stance, whilst also recognising some enabling actions required to protect against this stance back-firing.
Crowe's approach and activities
The client, a UK general insurance group, had previously been relatively conservative in its approach to transition-related opportunities. Its investment management arm was considerably more sophisticated in its climate stance than the remainder of the business.
We supported the client’s executive in taking a bolder sustainability stance.
Climate strategy risk assessment
Materiality assessment
Sustainability regulatory roadmap
The client's challenge
The client's challenge
The client's challenge
Developed a comprehensive list of climate-related issues, including to reflect relevant regulatory initiatives, both effective and incoming. While we would typically also consider social and governance factors, the client requested a specific focus on climate change. Developed and agreed a list of key stakeholder groups to be considered during the assessment and identified internal proxies to understand fundamental drivers and concerns, in line with the agreed approach. Facilitated workshops with the Chief Strategy Officer, Chief Risk Officer, and Chief Investment Officer to complete an initial assessment of significance, including breaking out relevant factors to individually consider operations, investments, underwriting and individual lines of business, where relevant. Considered feasibility and effort of associated activity to help when prioritising and planning work. Plotted assessment outputs on a materiality grid for reporting and approval by the Executive and the Board. Developed a climate roadmap and completed nearer term planning based on a prioritised view of what was required to be delivered.
Our approach to this challenge came in three phases:
information on climate change and international targets how risks and opportunities are impacted by climate change regulatory response governmental response measuring and reducing GHG emissions how climate risk impacts creditworthiness.
Regulation horizon scan Crowe reviewed the group structure and financial information for each entity to determine which regulations – current and upcoming – apply to the client.
Existing framework maturity assessment A number of the regulation frameworks mandate the undertaking of a materiality analysis to understand the relevance of sustainability topics to the firm. We reviewed the client’s existing materiality analysis to inform the regulatory roadmap. We also undertook a gap analysis of existing information against the Prudential Regulation Authority SS3/19 and Bermuda Monetary Authority frameworks, to understand the organisations’ maturity.
Actions roadmap Using the outcomes from the first two phases, we were able to produce a roadmap of actions that the client was required to undertake to be compliant with the relevant regulations.
Case studies
Our close working relationships are at the heart of our service.
Crowe's approach and activities
Outcomes and benefits
The client also requested for half the session to be focused on the climate risks and opportunities faced by their own clients, to support client-facing colleagues in their credit assessment and client conversations.
Crowe developed a tailored two-hour training session to encourage the bank’s staff to apply the knowledge to their own roles. A bespoke final quiz was also provided and used by the HR team to monitor CPD and progress made.
The Crowe team engaged with the client to understand the relevant business activities and reviewed the client’s own sustainability policies and reports to ensure that the training was tailored. The final training syllabus was then agreed with the client and followed the below structure:
CROWE'S APPROACH AND ACTIVITIES
Crowe was engaged by a bank to support their team in developing and leading in-person Climate Risk Training, providing both an overview of the topic and sector-specific training to client-facing employees. The aim of the training was to provide the teams with knowledge of climate risks and opportunities to support their everyday decision-making and conversations with their clients.
The client's challenge
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Regulation horizon scan Crowe reviewed the group structure and financial information for each entity to determine which regulations – current and upcoming – apply to the client.
Existing framework maturity assessment A number of the regulation frameworks mandate the undertaking of a materiality analysis to understand the relevance of sustainability topics to the firm. We reviewed the client’s existing materiality analysis to inform the regulatory roadmap. We also undertook a gap analysis of existing information against the Prudential Regulation Authority SS3/19 and Bermuda Monetary Authority frameworks, to understand the organisations’ maturity.
Actions roadmap Using the outcomes from the first two phases, we were able to produce a roadmap of actions that the client was required to undertake to be compliant with the relevant regulations.
The client's challenge
Information on climate change and international targets How risks and opportunities are impacted by climate change Regulatory response Governmental response Measuring and reducing GHG emissions How climate risk impacts creditworthiness.
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