Resource Database

This report aims to illustrate how scenario-based financial risk analysis can be performed in the utilities sector and if and how it can be relevant to company analysis and, specifically, valuation. This is the second in a series of five reports. Read all reports in this series at http://co-firm.com/en/publikationen/.

Which mechanisms explain the damage that has been caused to the planet? On what basis can businesses make strategic decisions in a rapidly changing world? How can scenario-based analysis be a powerful tool in helping businesses to perform well in the medium and long term? The deterioration of the planet challenges the limits of a societal model built around the mass energy consumption responsible for global warming. Making the right strategic decisions in a rapidly changing world that finds itself under duress is a real challenge for decision-makers. Scenario-based analysis and physical flow approach is a powerful tool that can help them adapt to this new state of play, and it is this approach that this report introduces.

WRI released a new tool that allows exploration of economic and emissions scenarios to identify opportunities to deliver on climate goals. It includes a number of models from IPCC, private sector, and country-specific providers along with underlying scenarios and assumptions.

In this edition of the blog series on the implication of climate change for various sectors, we explore the issues as they relate to power utilities. The TCFD has identified electric utilities as one of the sectors potentially most affected by climate change with a wide range of possible financial implications. As with the previous installment on the Financial Sector, this blog explores climate change risks and opportunities for power utilities, discussing both the financial and non-financial drivers and translating them into decision-useful considerations. This discussion will help provide clarity and propel internal discussions and management of climate-related risks and opportunities within the sector and beyond.

This first entry in Zizzo Strategy’s blog series explores the implications of climate change for various economic sectors and the organizations, and individuals within them. Climate change is recognized as a global challenge and a “threat multiplier” to other existing challenges. Climate change’s magnitude can make it seem like an overwhelming topic, especially if all you want to know is what the next steps should be for your organization or your specific role. Throughout this series, Zizzo will delve into the significance of climate change for particular sectors, discussing both the financial and non-financial impacts, and translating them into decision-useful considerations to provide clarity on relevant issues and help propel internal discussion and management of climate-related risks and opportunities. Each post will conclude with suggestions on next steps and tools you can use to prepare your organization for the challenges presented by climate change.

This analysis reviews the progress made by the national regulatory agencies of G20 members in making the TCFD recommendations relevant to their national contexts. It considers actions taken by the national (and international in the case of the EU) regulatory authorities in underlining the relevance, and taking steps towards potential implementation, of the TCFD recommendations.

After the publication of the TCFD recommendations in June 2017, C2ES identified that companies needed support in implementing certain aspects of them – including how to use scenario analysis to assess climate-related risks and opportunities. This report identifies best practices that companies are employing. It also includes a discussion of some challenge areas, including how companies are navigating a more complex disclosure landscape, addressing legal concerns related to disclosure, and taking a holistic look at both transition and the physical risks of climate change.

This webinar hosted by CDSB, provides practical first steps and guidance for those undertaking scenario analysis in line with TCFD recommendations. This webinar includes ERM, the authors of the TCFD technical supplement on scenario analysis.

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.

This paper captures the current state of the European banking sector’s response to climate-related risk and the low-carbon transition. It provides share and bondholders in the 15 largest European banks with an overview of where the sector is positioned on climate-related risks and opportunities and the information required to encourage banks to improve their climate-related performance.

This framework provides climate-related indicators published by the PRI in its Reporting Framework aligned with the TCFD recommendations. As of the 2018 reporting cycle, signatories will be able to voluntarily report and disclose on 20 new or updated indicators.

This toolkit contains scientific tools and information for a climate-smart nation focused on climate stressors that threaten people, buildings, natural resources, or the economy. It includes an interactive visualization tool and real-world case studies.