Climate Risk Disclosure

Why Climate Disclosure Matters Now

Climate change is no longer a distant concern — it’s a present and growing risk for organizations across every sector. As regulations like California’s SB-261 and global frameworks such as the Task Force on Climate-Related Financial Disclosures (TCFD) reshape the reporting landscape, companies must not only measure their climate-related risks but also communicate them transparently to stakeholders.

For Eide Bailly, this shift represents both a challenge and an opportunity: to build trust, drive resilience, and lead clients through the complexities of sustainability. That’s why we’ve elected to complete our first climate risk disclosure, in conformance with The Final Report of Recommendations of the TCFD (June 2017).

Governance: Board Oversight and Leadership Commitment

Effective climate risk management starts at the top. Eide Bailly’s Board of Directors is increasingly engaged in overseeing climate-related risks and opportunities.

Key points include:

• Board oversight is evolving to include climate-related issues
• Leadership teams, including the Chief Risk Officer and advisory teams, are driving initial compliance efforts
• The organization recognizes the need for dedicated climate governance roles and clearer processes as its approach matures

Strategy: Navigating Risks, Opportunities, and Scenario Analysis

Eide Bailly is developing processes to identify and manage climate-related risks and opportunities, especially in geographies with heightened environmental exposure.

Our approach includes:

• Maintaining business continuity plans and liability insurance as foundational risk mitigants
• Working toward integrating climate considerations into strategic and financial planning

Risk Management: Embedding Climate into Enterprise Frameworks

Our risk management function is adapting to include climate-related risks, including:

• Evaluating how climate-related risks may affect the business both financially and operationally, ensuring these factors are considered alongside other enterprise risks
• Reporting climate risk assessments to management and the board
• Actively monitoring regulatory developments and planning compliance measures

Metrics and Targets: Measuring Progress and Setting Goals

Eide Bailly is beginning to measure greenhouse gas emissions (Scope 1 and 2) and plans to expand data collection and reporting capabilities.

Our goals include:

• Improving data and methodology to support future sustainability targets
• Expanding reporting scope to include climate and environmental metrics

Building Resilience for the Future

Eide Bailly is taking meaningful steps to align with best practices and regulatory expectations. By strengthening governance, integrating climate risk into strategy and risk management, and improving metrics and transparency, we are positioning our firm — and our clients — for resilience in a rapidly changing world.