Watson Farley & Williams LLP
Climate Impact & Sustainability Data (2022)
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Climate Change
Climate Goals & Targets
Long-term Goals:
- Net-zero emissions by 2050 (EU target)
Environmental Challenges
- Limited success of previous carbon reduction strategies due to lack of international cooperation.
- Difficulty in calibrating KPIs for sustainability-linked finance without greenwashing or discouraging participation.
- Potential for margin call effects on borrowers if KPIs are not met due to unforeseen circumstances.
Mitigation Strategies
- Development of sustainability-linked finance to incentivize carbon reduction.
- Periodically increasing targets to reward continuous improvement.
- Calibrating KPIs by reference to inputs rather than outputs for accurate measurement.
Supply Chain Management
Climate-Related Risks & Opportunities
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Development of energy-efficient products
- Sustainable aviation fuels
UN Sustainable Development Goals
- Goal 13 (Climate Action)
Incentivizing the transition to a low-carbon aviation industry.
Sustainable Products & Innovation
- Next generation aircraft
- Sustainable aviation fuels