Climate change is a business issue. This publication outlines 20 questions for boards of directors to ask in overseeing organizational risk management, business strategy and performance in the context of climate change.
CPD’s 2017 discussion paper "Climate Horizons" showed how scenario analysis could help Australian companies, investors and regulators manage climate-related risks and opportunities. This report updates the findings, offers new resources for organisations coming to grips with scenario analysis, and recommends next steps for regulators and policymakers to build on the progress made.
Author: European Bank for Reconstruction and Development, Global Centre of Excellence on Climate Adaptation
Industry Group: All Industry Groups
Guidance / Tool - 2018
This initiative aims to work with innovative thinkers in the financial and corporate sectors to identify the greatest needs for guidance, research and development. It also seeks to lay the foundations for a common conceptual framework and a standard set of metrics for reporting physical climate risks and opportunities. This report captures the findings and recommendations of the three working groups and of other experts in the market. It aims to advance the TCFD recommendations, laying the foundations on how to identify, measure and disclose physical risks and opportunities, building on the best available science and with the thoughtful input of practitioners from financial and non-financial corporations. The report also highlights key research questions and the need for further developments in methodology.
Along with a Working Group of 16 international banks convened by the UN Environmental Finance Initiative (UNEP FI), we developed a methodology for assessing risks and opportunities associated with the transition to a low-carbon economy (the “transition-related” impacts associated with climate change). The methodology addresses the Strategy element of the TCFD recommendations around the use of scenario analysis for forward-looking assessments of transition-related impacts.
The key aim of the methodology is to help banks assess the transition-related exposures in their corporate loan portfolios where they may have concerns about the potential policy and technology-related impacts of a low-carbon transition, as well as an appetite to explore and capture associated opportunities.
The 2018 MMC Climate Resilience Handbook provides concise cases that will change the way organizations think about climate in three categories of action: Strategies for Climate Resilience, Financing for Climate Resilience, Risk Management for Climate Resilience.
Author: World Resources Institute, UNEP FI, 2° Investing Initiative
Industry Group: Banks
Research / Insights - 2018
This paper informs the ongoing debate about how public- and private-sector banks should assess and report on their contribution to the transition toward a low-carbon economy. The research assesses the metrics that can be used to assess a bank’s contribution to the climate solution or problem. The report categorizes the existing metrics into greenhouse gas (GHG) accounting, green or brown, and sector specific metrics; compare these metrics; and make recommendations for choosing metrics by asset class.
To assist organizations in using climate-related scenario analysis to support the development of disclosures consistent with the Recommendations of the Task Force on Climate-related Financial Disclosures, the technical supplement sets out and discusses: Using scenario analysis, Considerations for applying scenario analysis, Analytical choices involved in scenario analysis, Types of climate-related scenarios, Publicly available climate-related scenarios from the International Energy Agency (IEA), the Intergovernmental Panel on Climate Change (IPCC), and others that can provide context and a basis for company, industry or sector scenarios
Author: The Prince's Accounting for Sustainability Project
Industry Group: All Industry Groups
Guidance / Tool - 2016
This guide by A4S sets out why it's important to adapt traditional risk management processes to respond to macro sustainability trends. It provides examples of how to overcome uncertainty associated with their impact in order to be better integrated into business decisions.