Author: CDP, Climate Disclosure Standards Board, GRI, Sustainability Accounting Standards Board, International Integrated Reporting Council
Industry Group: All Industry Groups
Framework / Standard - 2020
In September 2020, the five reporting organisations issued a joint statement of intent, outlining a vision for a comprehensive corporate reporting system, and a commitment to work together to achieve it.
In this paper, these organisations provide an important step towards this vision. This paper demonstrates how certain components of current frameworks and standards, along with the recommendations set out by the TCFD, can be used together to provide a starting point for the development of global standards for sustainability-related financial disclosure.
The AMF assessed the implementation of the TCFD framework by 10 French financial institutions, based on an in-depth analysis of their reports and interviews. This study highlights the main difficulties faced and presents good practices and next steps in order to support the institutions who choose to disclose climate risks and opportunities against this voluntary framework.
In this report CDSB has taken a deep dive into the environmental disclosures of the largest listed companies in the EU. The third in the series, we pick up where our previous report ‘Falling Short?’ left off. We will compare where we were then, and what progress has been made, and will find from this comparison a clear sense of progress, which nevertheless fails to demonstrate a fast enough acceleration to achieve the change that is needed.
The review assessed the strengths and weaknesses of companies’ disclosures, based on the required disclosures under the NFRD, and the recommendations of the TCFD.
Author: The Prince's Accounting for Sustainability Project
Industry Group: Banks
Case study - 2020
The TCFD reporting example on ABN AMRO focuses on the use of scenario analysis.
ABN AMRO Bank N.V. is headquartered in Amsterdam, Netherlands. It is the third largest bank in the Netherlands with total assets of €375 billion and assets under management (AUM) of €296.5 billion.
The bank reported against the TCFD framework for the first time in its 2019 Annual Report. Reporting in line with each of the four thematic areas enabled the company to show the breadth of their TCFD response. It also revealed the key areas where implementation of the recommendations can be enhanced, with some of the planned ‘next steps’ referred to in their disclosures.
Author: Portfolio Alignment Team (led by David Blood, Generation Investment Management and Iren Levina, COP26 Private Finance Hub )
Industry Group: Financial
Guidance / Tool - 2020
As an increasing number of countries legislate for net zero, investors and lenders will need tools to identify risks and opportunities in the transition to a net zero economy. This requires forward looking, robust, decision useful and comparable metrics. The report provides a critical assessment of different approaches on a spectrum of sophistication, with a particular focus on portfolio warming metrics. The report sets out their key building blocks, initial views on potential best practice, and identifies the data needs and methodological questions that require further work to make these metrics robust.
This report investigates banks’ climate-related financial risks and their exposure to a disorderly transition. Based on the finding that a majority of bank lending is in climate-exposed sectors, the report also lays out a blueprint for bank action with key recommendations for how banks can discuss their climate risk exposure and the mitigation strategies they can use to address this risk exposure and broader climate-related societal impact.
This report develops a robust and inclusive strategy to amplify and mainstream the global transition to a net-zero emissions economy. It calls upon governments, businesses, and financial institutions to each take steps toward achieving the net-zero imperative. The report makes clear that the actions taken today and in the very-near term will be essential to ensuring our collective environmental, social, and economic sustainability.
The report urges governments to establish comprehensive and transparent policy frameworks for reaching net-zero emissions by 2050, which must be built upon robust policy credibility. These frameworks will serve as transition guides for businesses who, for their part, must implement corporate reforms to align themselves with the net-zero imperative. Additionally, the report highlights the need for expanded disclosure of decision-useful, environment-related information by firms. The report further presses financial actors to more fully assess the risks inherent to climate change and the net-zero transition and seek the benefits that can be had by channeling capital toward green innovation. It is incumbent upon all economic actors today to act boldly and quickly to implement the measures necessary to ensure a prosperous and temperate future for humanity and the planet.
Financial institutions are the key to unlocking the system-wide change needed to reach net-zero emissions and limit global warming to 1.5°C above pre-industrial temperatures. The Science Based Targets initiative’s new framework allows financial institutions – including banks, investors, insurance companies, pension funds and others – to set science-based targets to align their lending and investment activities with the Paris Agreement.
Already a leading online tool for companies and investors to assess and respond to water risks, the WWF Water Risk Filter launched in 2020 new forward-looking scenarios of water risks. The WWF Water Risk Filter scenarios, based on climate and socio-economic changes, are aligned with TCFD recommendations.
The aim of this brief is to provide an overview of the WWF Water Risk Filter scenarios and guidance on how scenario analysis can help companies and investors to understand future water risks and build resilience in an uncertain future.
Industry Group: Financial, Real Estate Management and Development
Guidance / Tool - 2020
To determine the physical risks in a credible and comparable way, Australian companies need reliable information for scenario analyses. The Climate Measurement Standards Initiative (CMSI) is an industry-led collaboration between Australian insurers, banks, scientists, reporting standards professionals, service providers and supporting parties to assist with TCFD reporting. The CMSI is initially developing technical, business and scientific standards for climate-related physical risk to buildings and infrastructure assets.
This is a technical summary of the report ‘Scenario analysis of climate-related physical risk for buildings and infrastructure: climate science guidance’. The report, which was independently authored by the Earth Systems and Climate Change Hub of the National Environmental Science Program (NESP), describes methods, scenarios for acute and chronic climate hazards, gaps and needs, and a roadmap for the future.