Resource Database

As businesses consider the impacts of climate change on their long-term sustainability, it has remained difficult to measure such risks – until now. Future activities must consider physical impacts of climate change and the transition to a low-carbon economy. Transition Check allows corporate lenders and other financial institutions to quantify the impact of transition risk on their customers and corporate lending portfolios across a wide variety of climate scenarios. Transition Check applies the risk assessment methodology collaboratively developed by Oliver Wyman, the UNEP Finance Initiative (UNEP FI) and thirty-nine global financial institutions as part of UNEP FI’s Task-Force on Climate Related Financial Disclosures (TCFD) pilot program. That methodology is detailed in Extending Our Horizons, UNEP FI and Oliver Wyman’s joint whitepaper.

Consumer businesses face a complex web of climate-related risks and opportunities, and both supply chains and physical assets are vulnerable to the impacts of climate change. Beyond this, the consumer businesses are responsible for over 25% of global emissions, making transformation of the sector integral to the successful decarbonisation of the global economy.

In this report, Deloitte and the Met Office explore four plausible futures for consumer businesses. Through each scenario, the report shows the huge implications climate change has for both businesses and consumers, and show how scenario analysis drives effective long-term decision-making today.

The financial services industry has a crucial role to play in the transition to a lower carbon economy. Much has been done in the industry to increase the pace and scope of the response but there is much more to do. This report from Oliver Wyman argues that financial firms must respond to three imperatives on climate change:

1. Act on the risks.
2. Seize the opportunity.
3. Steer top down.

The study looks at 60 of the most carbon-intensive extractive companies and at the extent and quality of disclosures they make in the management report and in the financial statements about the potential impact of climate change on their business. Clearly there are risks to the long-term viability of their activities which would impact their mineral or hydrocarbon reserves and the related infrastructure and leave them with ‘stranded’ assets. Overall the findings are that the reporting is not good enough and that annual reports lack clarity of and depth in climate change related disclosures.

This report is a practical tool built by investors and for investors to understand what a net zero by 2050 pathway looks like, including details on how it affects 10 key sectors. It also provides toolkit to evaluate the maturity and quality of companies scenario analysis disclosure. As an increasing number of companies commit to Paris Agreement aligned emissions targets, this will be a valuable resource in helping investors better understand the portfolio implications of these decarbonization pathways.

This report updates CDP’s research and League Table for European electric utilities, first published in May 2015. It ranks 14 of the largest publicly listed power generators in Europe on readiness for a low carbon transition. The areas assessed in the CDP League Table are aligned with the TCFD recommendations.

This paper seeks to explore the question of adaptive capacity of companies to financial risks that may arise in the context of the transition to a low-carbon economy.

The Climate Guidance is designed to complement the CDSB Framework and other frameworks, codes and recommendations that are aligned with some or all of the requirements of the CDSB Framework. This guidance offers companies a means of developing their reporting practices and ensuring that investors are receiving the material climate-related information needed for efficient and effective capital allocation to drive the transition to a just, low-carbon economy.

This report updates and expands CDP’s research and League Table for chemical companies, first published in August 2015. It ranks 22 of the largest publicly listed chemical companies on business readiness for a low carbon transition. The areas assessed in the CDP League Table are aligned with the TCFD recommendations.

This link provides a description of the dedicated methodologies and tools offered by Carbone4 for specific actors or specific sectors. This enables companies to easily calculate their footprint, and follow their emissions trajectory. We also help companies to define 2 degrees targets.

The financial risk from carbon pricing schemes depends on a company’s carbon efficiency, location of operations, business model, and the market conditions of the sector. At present, many companies measure their carbon footprint, which is an essential first step in understanding carbon efficiency of past operations, but it has a blind spot in regard to future carbon pricing risk exposure. Because a significant share of carbon pricing risk could come from supply-chain activities and energy-intensive products, it is essential for companies to account for companies to account for their carbon risk beyond their direct operations. Meaningful disclosure by companies on future carbon risk, as recommended by the TCFD, will help decision-making of investors and help accelerate mainstream green finance.

Trucost’s Carbon Pricing Tool allows companies to assess their exposure to evolving regional carbon pricing mechanisms, helping to create the business case for greener products and business models.