Testing the TCFD Framework – An Equinor and Storebrand Case Study

By: Equinor and Storebrand

In order to support the adoption and implementation of the TCFD recommendations, Equinor and Storebrand have carried out a case study that we are making available for the UN Principles for Responsible Investments (PRI) TCFD pilot group. The purpose of this exercise was threefold: (1) to demonstrate how an investee’s (Equinor’s) existing reporting is aligned to TCFD guidelines and identify gaps and areas for improvement, (2) to identify findings and areas for further investigation for the industry as a whole and (3) to demonstrate how an investor (Storebrand) uses such disclosures in security analysis.


What was the initial approach used?

The case study is based on a review of Equinor’s 2016 annual report and sustainability report, as well as the capital markets update presentation from February 2017. Through dialogue, Equinor and Storebrand identified some areas in Equinor’s 2016 reporting which potentially could have been improved, resulting in further alignment with the TCFD recommendations.

What were the barriers, and how were they overcome?

Storebrand and Equinor acknowledge that forward looking scenarios are highly uncertain. The desire for quantification of risks is very challenging due to the wide range of uncertainty related to climate-related scenarios, and hence the difficulty of assessing the probability and scale of impact. Dialogue between portfolio managers, sustainability analysts, corporate sustainability team and executives helped to increase the understanding of the topic and align expectations.

Further insights

Equinor and Storebrand intend to continue working together to help mature thinking around some of the topics identified above and engage with the PRI and TCFD on efficient and feasible ways to implement the recommendations. In particular, the companies encourage discussion on the following issues: