As the effects of climate change become more visible, organisations are increasingly embedding environmental and social factors into their financial and non-financial decisions. While it is a positive trend for the climate and our environment, it shows just how complex modern financial management practice is becoming.

The Chartered Institute of Public Finance and Accountancy (CIPFA) recently consulted the sector on potential changes to the treasury management code to ensure treasury managers in local government have the guidance they need to navigate the decision-making landscape.Key to the consultation was the way environmental, social and governance (ESG) risks were considered, with a focus on external companies local government conducts business with.