KPMG Podcast Series: Building Confidence

How can corporates address climate risks and exposures? - Part 2

In part 2 of our episode on how corporates can address climate risks and exposures, we continue our discussion from part 1 with Simon Henry, a Non-Executive Director, and Simon Virley, our Vice Chair and Head of Energy and Natural Resources at KPMG in the UK. Our guests provide details on the climate reporting landscape and what good practice looks like in terms of reporting requirements. We also discuss the role investors can play to engage on this important topic and what questions Board members should be asking of management to address the climate risk agenda.

How can corporates address climate risks and exposures? - Part 1

In part 1 of our podcast episode on how corporates can address climate risks and exposures, we are joined by Simon Henry, a Non-Executive Director, and Simon Virley, our Vice Chair and Head of Energy and Natural Resources at KPMG in the UK. In this episode, our guests examine the progress made during COP26 and provide insight on some of the notable successes and setbacks. With 90% of the world now signed up to net zero, we discuss the challenges facing all organisations and what key actions business leaders should be taking to address this. In part 2, we delve into a deeper discussion around the reporting landscape, industry examples of what good practice looks like, the role investors can play to engage on this important topic and what questions Board members should be asking of management .

Corporate governance: Are UK practices as tight and transparent as they should be?

Our KPMG host Michelle Hinchliffe is joined by David Styles, Director of Corporate Governance and Stewardship at the Financial Reporting Council (FRC) and Peter Swabey, Policy and Research Director at the Chartered Governance Institute UK & Ireland (CGIUKI). David and Peter share their insights into the latest updates on corporate governance reporting, best practices, and share helpful tips and advice on areas where improvement is needed.

We also cover the introduction of ARGA, the next corporate governance challenges coming over the horizon and the questions Board members should be asking of management.

Geraldine Lawlor and Jonathan Evans, KPMG - What should a Director be doing to reduce fraud risks?

On our most recent episode, we were joined by Geraldine Lawlor, Global Head of Financial Crime and Jonathan Evans, the Chair of our Public Interest Committee and former Director General of MI5 to talk about financial crime and cyber risk. With developments in technology, preventing and detecting financial crime is rapidly evolving to be one of the biggest challenges facing organisations. In the episode, we explore lessons learnt, best practices and what questions Non-Executive Directors should be asking of management.

Dylan Whitfield, HSBC – A forensic analyst’s view on audit and corporate governance reform

In this episode, KPMG host Michelle Hinchliffe is joined by Dylan Whitfield, Head of Forensic Accounting within Global Research at HSBC. Dylan shares his insights about what analysts and investors think of the BEIS consultation on Restoring trust in audit and corporate governance, ahead of the consultation response deadline of 8^th July 2021.

Listen as Dylan covers many of the recommendations set out in the BEIS consultation, including strengthening internal controls, introducing an Audit and Assurance Policy and also the role of the regulator, and how the package of reforms can help build confidence in the UK market. Dylan’s overriding view is that the proposals will represent a significant change for the better for the UK’s auditing, reporting and governance regime, and highlights that the relationship between the auditor and the shareholder will be one of the keys to success in the future.

Clare Payn, Senior Global ESG and Diversity Manager at LGIM – Investor priorities

In this episode we welcome Clare Payn, Senior Global ESG and Diversity Manager at LGIM, to discuss investor priorities and the role that institutional investors play in driving enhancements in corporate reporting more broadly.

Clare provides her insights into the key ESG themes that investors have been focusing on in the current AGM season including climate risk, TCFD reporting and Paris-aligned targets. Clare also discusses strengthened investor policies on gender inclusion and ethnic diversity, the board-level inclusion and diversity targets set by the Hampton-Alexander and Parker Reviews, and the voting policies that LGIM – one of the largest UK institutional investors – has introduced in response. Listen to this episode to gain clarity on what investors are requesting from companies, as well as the role of the auditor.

Alun Bowen, Severstal - Audit and Assurance Policy

In this episode, KPMG host Michelle Hinchliffe is joined by Alun Bowen, Chair of the Audit Committee Chair at Severstal, Russia’s largest fully integrated steel company, to discuss the Audit and Assurance Policy which was initially recommended by Sir Donald Brydon and also features in the BEIS consultation on Restoring trust in audit and corporate governance.

Alun shares the process that he took Severstal through to become a leader in this area and as far as we are aware, is one of the first companies to have published an Audit and Assurance Policy. You can read the policy they published in October 2020 here . He discusses the value of the policy both for the company and for shareholders. Listen to the episode today to find about his views of the benefits and challenges of developing an Audit and Assurance Policy and how it can enhance engagement with shareholders.

Charles Tilley, IIRC - Business Resilience

In this episode we talk to Charles Tilley, CEO of the International Integrated Reporting Council (IIRC), about the introduction of the new Resilience Statement – one of the proposals in the recent BEIS consultation on Restoring trust in audit and corporate governance.

Charles shares an overview of the proposals for the new Resilience Statement and how this will lead to more meaningful reporting, touching on some of the key challenges organisations will face. Charles also discusses the inclusion of TCFD reporting, reverse stress testing and concerns from preparers that commercially sensitive information will need to be shared. Listen to this episode to find out more about this important proposal and what companies should do today using existing requirements.

Jock Lennox, ACCIF - Strengthening the UK’s internal controls framework

In this episode, KPMG host Michelle Hinchliffe is joined by Jock Lennox, Chair of the Audit Committee Chair Independent Forum (ACCIF), to discuss the Government’s proposals to strengthen internal controls at UK companies.

Jock shares his views about why more evidence of robust controls over financial reporting is warranted in the UK and the approach he believes should be taken. As well as this, Jock comments on what the future could look like and how companies can re-establish trust in order to ‘get the corporate debate off the front pages and back into the business pages’. Listen to this episode in preparation for planning your own response to the consultation, which is due by 8^th July.

Sir Jon Thompson, Chief Executive of the FRC - Will reform drive change in the corporate reporting ecosystem?

In our first episode, KPMG host Michelle Hinchliffe is joined by Sir Jon Thompson, Chief Executive of the FRC, to talk about the Business, Energy and Industrial Strategy (BEIS) consultation to restore trust in audit and corporate governance, which was launched on 18 March 2021. Together they explore the package of reforms and how it aims to drive change and build confidence in the UK market.

 

Listen as Jon shares his views on how the recommendations can help businesses grow, changes in director responsibilities, its impact on investors, the regulatory perspective and the potential cost implications.  He also provides some insights into what to expect as a result of the consultation, how it will be implemented and equips listeners with the perspective of our regulator as they plan their response to the consultation, which is due by 8^th July.