This EU Directive requires the management report to include a fair review of the development and performance of the undertaking's business and of its position, together with a description of the principal risks and uncertainties that it faces. This also includes the undertaking's likely future development.
The notice provides guidance to reporting issuers on existing continuous disclosure requirements relating to environmental matters under securities legislation in Canada. It is intended to assist issuers in determining what information needs to be disclosed, and how to enhance or supplement their disclosure as necessary.
Author: World Business Council for Sustainable Development, Institute of Chartered Accountants in England and Wales
Industry Group: All Industry Groups
Guidance / Tool - 2019
By providing external validation of disclosures, and of the processes undertaken in producing those disclosures, assurance can increase the confidence of capital providers and other stakeholders using non-financial information to guide their decision-making.
But what is assurance? How does it work? And how is it beneficial to users of nonfinancial information?
This ‘Buyer’s guide to assurance on non-financial information’ (the guide), written by the Audit and Assurance Faculty of the Institute of Chartered Accountants in England and Wales (ICAEW) and the WBCSD, addresses these questions and brings much-needed clarity on a topic that is often perceived as confusing.
Before using scenarios, it is essential to know how to correctly interpret them. This implies first navigating the complex ecosystem of climate-related scenarios and identifying those that can be used to explore issues linked to the low-carbon transition: transition scenarios. It also requires fully understanding the issues relating to these scenarios.
The goals of this publication are therefore:
- Explaining the key concepts underpinning climate-related scenarios, presenting the main families of scenarios and the questions these scenarios help to answer;
- Providing keys to reading transition scenarios in order to facilitate their interpretation and to avoid misunderstanding.
A framework for reading transition scenarios was developed to provide readers with a step-by-step guide to scenarios. It summarises the eight main steps to follow in order to interpret a transition scenario according to the explanations developed in this study, and is applied to 5 publicly-available scenarios.
This study examines which specific challenges can arise for German companies when implementing the TCFD recommendations. Following a presentation of the theoretical and practical background, it presents the results of an analysis into German chemical companies’ annual and sustainability reports, including their CDP response, and highlights key findings from a company interview. The study shows how current reporting practice, which often closely aligns with minimum legal requirements, will have to be extended and which adjustments of internal corporate processes and structures need to take place to enable TCFD-aligned disclosures. Potential solutions to the challenges are discussed against the backdrop of sustainability management.
This resource is in German.
Author: Alessia Falsarone and Robert Vanden Assem / PineBridge Investments
Industry Group: Asset Managers, Asset Owners
United States of America
Research / Insights - 2019
In this case study, part of the Sustainability Accounting Standards Board (SASB) Integration Insights series, PineBridge Investments explains how it uses SASB’s framework to help build TCFD-ready, climate-resilient portfolios. Leveraging SASB’s focus on financial materiality, PineBridge defines sector-specific, climate-stress scenarios that allow it to readily incorporate key climate exposures alongside traditional risk-adjusted portfolio metrics, enhancing its analysis and facilitating more effective mitigation of the risks associated with a transition to a low-carbon economy.
The Climate Risk Sensitivity Assessment Tool was developed to help Brazilian banks identify the sensitivity of their credit portfolio to climate risks. The tool uses as reference concepts of Resolution nº 4327 (relevance and proportionality) and TCFD (critical sectors), with the degree of exposure to climate risk of bank operations (relevance) and the complexity of banks addressing exposure to climate risk (proportionality). Portfolio valuation through the tool can take place at three levels: consolidated portfolio, sectoral portfolio and clients, identifying exposure to critical sectors and the result of this analysis can be used for monitoring and prioritization of actions. This report was developed in partnership with SITAWI Finance for Good and with the support of a group of FEBRABAN member banks.
Following the release of the TCFD second status report this June, we analyzed TCFD supporters’ disclosure around climate change using natural language processing, finding that financial services are talking about climate change more than ever before.
1) The number of finserv TCFD supporters mentioning climate change with a high emphasis has more than doubled from 14% in 2016, the year before the TCFD recommendations were published, to 33% in 2019.
2) Climate change is predominantly discussed through a risk rather than an opportunity lense – with 54% of finserv TCFD supporters referring to the topic in relation to risk and 20% in relation to opportunity in 2018.
3) Interestingly, climate change has been predominantly mentioned in the context of distant future risks, rather than in recognizing the upcoming implications to business.
4) High emphasis reporting among the largest financial services companies that don’t support the TCFD (market capitalization above $20bn) has risen from 12% in 2017 to 19% in 2019, the period since the introduction of the TCFD recommendations.
5) The number of climate-related regulations and voluntary initiatives has almost doubled since 2014 (211 between 2009 and 2013, and 418 between 2014 and 2018).