Financial service providers and companies can now access the Energy Transition risk tool for scenario-based financial impact analysis of climate risks and opportunities, based on the ClimateXcellence tool developed by The CO-Firm. Using the scenarios, developed by The CO-Firm and 2° Investing Initiative as a starting point, The CO-Firm demonstrates potential impact of transition risks on financial indicators like earnings, capital expenditure and profit margins in selected sectors and companies.
Sixteen leading banks convened by the UN Environment Finance Initiative (UNEP FI) and supported by climate risk advisory firm Acclimatise, have released new methodologies that aim to help the banking industry to understand and manage the physical risks and opportunities of climate change in their loan portfolios. The methodologies, published in this report, support the implementation of the recommendations of the Financial Stability Board’s (FSB) Task Force on Climate-related Financial Disclosures (TCFD). Using the methodologies banks can begin to assess physical climate risks on key credit risk metrics for climate-sensitive industry sectors. The guidance also sets out how banks can start to evaluate opportunities to support their clients in becoming more climate-resilient. The methodologies, which were piloted for agriculture, energy and real estate portfolios, can be used by banks to assess a wide range of sectors in their loan portfolios.
Author: Climate Disclosure Standards Board, South Pole
Industry Group: All Industry Groups
Webinar (recording) - 2018
Following a webinar discussing the first steps of getting started with scenario analysis, this session takes a deeper dive by discussing 2 cases studies of how companies have undertaken their scenario analyses. The case studies are presented by South Pole.
This report, from Marsh & McLennan Companies’ Global Risk Center and CDP, examines the challenges organizations now face in implementing the TCFD recommendations one year on from their release. The report identifies and reviews the three key challenges organizations are facing in implementing the TCFD recommendations and the shift to assessing climate risks and opportunities.
This primer is intended to assist boards and their committees embarking on the climate-related financial risk reporting journey. It proposes key questions relevant to the assurance of a corporation's reporting on climate-related financial issues – and to the robust processes of governance and oversight on which those disclosures must be based.
Investors are pushing companies to plan for climate change risks and report publicly on how they're doing so. A high-profile, market-driven example is the Task Force on Climate-Related Financial Disclosure (TCFD). Listen the webinar to hear from Bloomberg, ABN AMRO, ING, Zurich Insurance, and NRG Energy.
Author: University of Cambridge Institute for Sustainability Leadership , ERM, ClimateWise
Industry Group: Asset Owners, Materials and Buildings
Guidance / Tool - 2018
Navigating the Transition is a free, open-source framework to help model the likely impact climate transition risks will have for global infrastructure portfolios. The project was commissioned by The ClimateWise Council, a group of c-suite insurance executives convened by the University of Cambridge Institute for Sustainability Leadership (CISL). The Council’s first commission was this open-source model to help infrastructure investors assess the financial materiality of transition risk across a range of (TCFD aligned) climate scenarios, geographies and timeframes. It will immediately provide investors with the tools they need to integrate transition risk into their own financial models.