Climate change is arguably the most acute challenge facing our planet right now and is an issue that is quickly moving up the corporate agenda.
In this important climate change report, we provide an overview of organisations’ preparedness for climate change, the key risks and opportunities associated with it, and the role internal audit is playing in supporting their organisation to be climate ready. The report, written in partnership with The Climate Group, will hopefully inspire internal audit functions to start and develop their climate change journey.
We conducted a survey of 122 Chief Audit Executives (CAEs) across all sectors in the UK and Ireland. We also conducted four interviews with CAEs who have undertaken innovative internal audit work on climate change. We have presented these as case studies in the report.
The results of our survey revealed a disconnect between what organisations increasingly identify as a business-critical risk and the time and resources that internal audit functions spend on climate change. Over half of CAEs surveyed (52%) are currently doing very limited or no work related to climate change and 53% have not discussed climate change with their audit committee chair.
Given the level of risk associated with climate change, this is not where we would expect the internal audit profession to be. Climate change is quickly moving up the agenda and we believe it is an area where internal audit can add real value and demonstrate their worth to the organisation they serve.