1、Task Force on Climate-related Financial Disclosures Overview 4 2 The Need for Climate-Related Financial Disclosure 3 Potential Financial Implications of Climate Change 5 The Task Force on Climate-related Financial Disclosures 7 Demand for Climate-Related Financial Disclosure 11 Climate-Related Risks

2、 and Opportunities 13 The TCFD Recommendations 17 TCFD Recommended Disclosures 19 Guidance on Implementing the TCFD Recommendations 23 Sector-Specific Supplemental Guidance 25 Implementing the TCFD Recommendations 27 Benefits of Implementation 29 Select Resources on the TCFD Recommendations 31 TCFD

3、Supporters 33 Overview of the TCFD 2019 Status Report 35 Examples of Public Sector Developments 37 Contents 3 The large-scale and complex nature of climate change makes it uniquely challenging, especially in the context of economic decision making. Further, many companies have incorrectly viewed the

4、 implications of climate change to be relevant only in the long term and, therefore, not necessarily relevant to decisions made today. Those views, however, are changing as more information becomes available on the potential widespread financial impacts of climate change. In December 2019, Bank of E

5、ngland Governor Mark Carney noted that “changes in climate policies, new technologies and growing physical risks will prompt reassessments of the values of virtually every financial asset.” Companies and providers of capital, therefore, should consider their longer-term strategies and most efficient

6、 allocation of capital in light of these changes. Organizations that invest in activities that may not be viable in the longer term will likely be less resilient to the transition to a lower-carbon economy and their investors will likely experience lower returns. Compounding the effect on longer-ter

7、m returns is the risk that present valuations do not adequately factor in climate-related risks because of insufficient information. Investors, lenders, and insurance underwriters need adequate information on how companies are preparing for a lower-carbon economy. More effective, clear, and consiste

8、nt climate-related disclosure is needed from companies around the world. The Need for Climate-Related Financial Disclosure The Need for Climate-Related Financial Disclosure 2Source: The Economist Intelligence Unit, “The Cost of Inaction: Recognising the Value at Risk from Climate Change,” 2015. 1 So

9、urce: Munich Re, “The natural disasters of 2018 in figures,” 8 Jan 2019, and “Hurricanes cause record losses in 2017The year in figures,” 4 Jan 2018. corporate-news/media-information/2020/causing-billions-in-losses-dominate-nat-cat-picture-2019.html Natural catastrophe losses intensified by climate

10、change (2017-2019)1$640b up to $43t Value at risk as a result of climate change to manageable assets by 21002 4 Mark Carney, UN Special Envoy on Climate Action and Finance and Michael R. Bloomberg, TCFD Chair “ Now is the time to ensure that every financial decision takes climate change into account

11、.” Mark Carney, UN Special Envoy on Climate Action and Finance, Governor of the Bank of England, December 2019 5 Potential Financial Implications of Climate Change Potential Financial Implications of Climate Change Rise in Natural Catastrophes and Chronic Environmental Shifts f Macroeconomic shocks

12、or financial losses caused by storms, droughts, wildfires, and other extreme events, or by changing weather patterns over time f Unanticipated financial losses resulting from climate change (e.g., the effect of rising sea level on credit secured by coastal real estate) could impact the global financ

13、ial system Transition to a Low-Carbon Economy f Risks associated with an abrupt adjustment to a low-carbon economy, such as rapid losses in the value of assets due to changing policy or consumer preferences f Climate-related financial risks could affect the economy through elevated credit spreads, g

14、reater precautionary saving, and rapid pricing readjustments 6 5 Climate Change is a Financial Risk Climate-related risk is non-diversifiable and will have a financial impact on many companies: “ Climate-related risks are a source of financial risk and it therefore falls squarely within the mandates

15、 of central banks and supervisors to ensure the financial system is resilient to these risks.” Network for Greening the Financial System, First Comprehensive Report, April 2019 Capital and Financing Assets and Liabilities ExpendituresRevenues 7 G20 Finance Ministers and Central Bank Governors asked

16、the Financial Stability Board (FSB) to review how the financial sector can take account of climate-related issues. The FSB established the Task Force on Climate-related Financial Disclosures (TCFD) to develop recommendations for more effective climate-related disclosures that: f could “promote more

17、informed investment, credit, and insurance underwriting decisions” f in turn, “would enable stake- holders to understand better the concentrations of carbon-related assets in the financial sector and the financial systems exposures to climate-related risks.” The Task Force on Climate-related Financi

18、al Disclosures The Task Force on Climate-related Financial Disclosures 8 Chapter name 5 9 Industry Led and Geographically Diverse Task Force The Task Force on Climate-related Financial Disclosures 17 7 8 Experts from the Financial Sector Experts from Non-Financial Sectors Other Experts The Task Forc

19、es 32 international members, led by Michael Bloomberg, include providers of capital, insurers, large non-financial companies, accounting and consulting firms, and credit rating agencies. 10 11 Demand for climate-related disclosure has increased significantly since the release of the TCFD recommendat

20、ions in 2017. Many private sector financial institutions, investors, and others continue to make progress on incorporating climate-related disclosure into their financial decision-making. For example, over 370 investors with more than $35 trillion in assets under management committed to engage with

21、the worlds largest corporate greenhouse gas emitters to strengthen their climate-related disclosures by implementing the TCFD recommendations as part of Climate Action 100+. Demand for climate-related disclosure from investors and others is critically important. In particular, large asset owners and

22、 asset managers sit at the top of the investment chain and, therefore, have an important role to play in influencing the organizations in which they invest to provide better climate-related financial disclosures. Demand for Climate-Related Financial Disclosure Demand for Climate-Related Financial Di

23、sclosure “ It is necessary for all parties in our investment chain, from portfolio companies to asset managers, to support TCFD so that asset owners like us can properly access our portfolio. I am convinced that TCFD will continue to evolve as a major framework for such disclosure and strongly recom

24、mend all corporates to join.” Hiro Mizuno, Executive Managing Director and CIO Japan Government Pension and Investment Fund, February 2020 12 In addition, public sector leaders have also noted the importance of transparency on climate-related issues within financial markets. Climate-related risk is

25、increasingly the subject of new reporting requirements, such as the European Non-financial Reporting Directive 2014/95/EU, stress testing, and regulatory guidance based on the TCFD recommendations. Several national governments and public sector organizations formally support the TCFD. “ The NGFS emp

26、hasises the importance of a robust and internationally consistent climate and environmental disclosure framework. NGFS members collectively pledge their support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The NGFS encourages all companies issuing public

27、 debt or equity as well as financial sector institutions to disclose in line with the TCFD recommendations.” Network for Greening the Financial System First Comprehensive Report April 2019 1314 Climate-Related Risks and Opportunities Climate-Related Risks and Opportunities The Task Force identified

28、several categories of climate-related risks and opportunities. These include potential financial impact to assist investors, and companies consider longer-term strategies and most efficient allocation of capital in light of the potential economic impacts of climate change. Risks Transition Policy an

29、d Legal f Carbon pricing and reporting obligations f Mandates on and regulation of existing products and services f Exposure to litigation Technology f Substitution of existing products and services with lower emissions options f Unsuccessful investment in new technologies Market f Changing customer

30、 behavior f Uncertainty in market signals f Increase cost of raw materials Reputation f Shift in consumer preferences f Increased stakeholder concern/negative feedback f Stigmatization of sector Physicial f Acute: Extreme weather events f Chronic: Changing weather patterns and rising mean temperatur

31、e and sea levels Strategic Planning Risk Management Financial Impact Cash Flow Statement Balance Sheet Income Statement RevenuesExpenditures Assets & Liabilities Capital & Financing 15 Opportunities Resource Efficiency f Use of more efficient modes of transport and production and distribution proces

32、ses f Use of recycling f Move to more efficient buildings f Reduced water usage and consumption Energy Source f Use of lower-emission sources of energy f Use of supportive policy incentives f Use of new technologies f Participation in carbon market Products & Services f Development and/or expansion

33、of low emission goods and services f Development of climate adaption and insurance risk solutions f Development of new products or services through R&D and innovation Markets f Access to new markets f Use of public-sector incentives f Access to new assets and locations needing insurance coverage Res

34、ilience f Participation in renewable energy programs and adoption of energy-efficiency measures f Resource substitutes/diversification “ Climate change presents global markets with risks and opportunities that cannot be ignored, which is why a framework around climate-related disclosures is so impor

35、tant. The Task Force brings that framework to the table, helping investors evaluate the potential risks and rewards of a transition to a lower carbon economy. ” TCFD Chair, Michael R. Bloomberg, June 2017 16 17 The TCFD Recommendations The TCFD Recommendations The TCFDs recommendations were publishe

36、d in its 2017 report, in addition to supporting materials to assist with implementing climate-related financial disclosure. The TCFD 2017 report, supporting materials, and recent status reports are available at fsb-tcfd.org/publications/. DRAFT FOR DISCUSSION PURPOSES ONLY Recommendations of the Tas

37、k Force on Climate-related Financial Disclosures i Recommendations of the Task Force on Climate-related Financial Disclosures June 2017 Final Report Recommendations of the Task Force on Climate-related Financial Disclosure i June 2017 Implementing the Recommendations of the Task Force on Climate-rel

38、ated Financial Disclosures June 2017 Recommendations of the Task Force on Climate-related Financial Disclosure i The Use of Scenario Analysis in Disclosure of Climate-Related Risks and Opportunities June 2017 Technical Supplement This report provides context, background, and the general framework fo

39、r climate-related financial disclosuresit is intended for broad audiences. The annex provides the next level of detail to help companies implement the recommendations. The technical supplement is a further level of detail of detail that can be helpful for companies in considering scenario analysis.

40、18 In its work, the Task Force drew on member expertise, significant stakeholder engagement, and existing climate-related disclosure regimes to develop a singular, accessible framework for climate-related financial disclosure. The recommendations are structured around four thematic areas that repres

41、ent core elements of how organizations operate: Governance Strategy Risk Management Metrics and Targets “ The work of the TCFD shows the power of voluntary engagement from the private sector and how it can complement public sector regulations. A remarkable endeavor, the TCFD has developed global sta

42、ndards that are now being used by a significant number of corporations around the world” Christian Thimann, TCFD Vice Chair and CEO and Chairman of the Management Board, Athora Germany, February 2020 19 TCFD Recommended Disclosures The TCFD Recommendations Key Features of Recommendations The four re

43、commendations are supported by specific disclosures organizations should include in financial filings or other reports to provide decision-useful information to investors and others. Disclosure under the strategy and metrics and targets recommendations in financial filings is subject to a materialit

44、y assessment, although all organizations are encouraged to disclose publicly if practicable Adoptable by all organizations Designed to solicit decision-useful, forward-looking information onfinancial impacts Strong focus on risks and opportunities related to transition to lower-carbon economy 20 Ris

45、k ManagementMetrics and Targets Disclose how the organization identifies, assesses, and manages climate-related risks. Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material. Recommended DisclosuresRecommended Di

46、sclosures a) Describe the organizations processes for identifying and assessing climate-related risks. a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process. b) Describe the organizations processes for

47、 managing climate-related risks. b) Disclose Scope 1, Scope 2, and if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks. c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organizations overall risk management. c)

48、 Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets. GovernanceStrategy Disclose the organizations governance around climate-related risks and opportunities. Disclose the actual and potential impacts of climate-related risk

49、s and opportunities on the organizations businesses, strategy and financial planning where such information is material. Recommended DisclosuresRecommended Disclosures a) Describe the boards oversight of climate-related risks and opportunities. a) Describe the climate-related risks and opportunities the organizat