There is already more information available than you think


METRO AG report

METRO AG provide some insight about how to get started in disclosing against the TCFD recommendations.


What was the initial approach used?

METRO conducted a gap analysis to check which of the TCFD recommendations are already disclosed in our existing CDP climate answers, which we have been disclosing since 2005. METRO has been conducting carbon accounting for 20 years, with a climate protection target in place since 2011. In 2019 our target for CO2 emissions reductions was officially accepted as a science-based target. In addition to our work on reducing our footprint, we have included non-financial risks in the risk inventory and governance process for many years. We also set an internal carbon price in 2017, initially at €25, which we have increased in 2019 to €50 per to CO2.

What were the barriers, and how were they overcome?

Understanding the potential impact of climate change risk is complex, and if we treated every risk in the same way as climate change related risks, it would be a full-time job.

The TCFD recommendations seemed too big to start, but the analysis of the existing risk management based on answers given in the CDP climate questionnaire demonstrated that all requirements, except for the scenario analysis, were already covered in our disclosure. Having a table linking the CDP climate answers to the single TCFD requirements was extremely helpful.

Scenario analysis was the next big topic that seemed too big to start. We found that it is important to select the right scenario and to come to a common understanding of the underlying assumptions. We decided to tackle the scenario analysis step by step:

  1. When setting a science-based target we were required to take a deeper look into the 2°C scenario, and what impact this would have on our CO2 emissions reductions targets.
  2. The first identification of potential transition and physical risks was based on the risk overview from TCFD and considered the impact on our own operations, our supply chain and the business of our professional customers.
  3. Together with our colleagues from the energy management department, we analysed the impact of different scenarios on our energy cost. Based on our assessment the underlying risk has been outlined in our Annual Report (
  4. Rising prices for resources in our supply chain is in itself already a risk, without considering the impact of climate change on the availability/scarcity of resources. The next step we plan to take is to analyse the risk of climate change specifically on the scarcity of resources and the potential impact on METRO.

Further insights

As a leading global food wholesaler and retailer with activities in 35 countries, METRO is aware of its global climate policy responsibility and has therefore set itself very ambitious and challenging climate protection targets. To show that METRO takes climate protection seriously, we also introduced an internal virtual CO2 abatement price of €25 per tonne of CO2 in our own profitability calculations in 2017. Each investment project is assessed in terms of its CO2 emissions impact and priced accordingly. The aim of this approach is to make it clear to all employees that it is possible to combine the profitability of projects with the greatest possible CO2 savings.

Top tip: There is already more information available than you think. We advise that companies don’t wait, start working on understanding climate change risks in a step by step approach. Climate change risks exist and they will have an impact on your business, which could even lead to a change of the business model!