A masterclass on climate-related financial disclosure

If we want to keep on track with the Paris Agreement targets and reduce global warming to 1.5 degrees, we will be highly dependent on a financial market that accelerates green investments quickly.

Given that climate change is not only an environmental problem but a business one as well, investors need to understand and price the risks of an investment in the context of the complex effects of different climate change scenarios.

A masterclass on the Task Force on Climate-Related Financial Disclosure (TFCD) and the basics of scenario analysis by Tony Rooke, Technical Advisory at CDP, and Fredrik Lundin, Associate Vice-President at ISS Ethix Climate, addressed this topic at the Climate Innovation Summit 2018. in Dublin this week.

The TFCD, an industry-led task force created by the G20’s Financial Stability Board and chaired by Michael Bloomberg, addresses the need for transparent, scenario-based climate information with a set of recommendations (see final TFCD report) that advise companies on disclosing climate-related financial risks and opportunities in a standardised way.

These recommendations have gathered momentum since the creation of the task force in 2015; over 500 global companies worldwide are publicly supporting the recommendations and 130 investors (representing $13 trillion of assets) have been asking the leaders of G20 countries to input them to their national disclosure rules. While they are tailored to big organisations that have the resources to gather this specific, comparable dataset, Lundin encourages founders and experts from small to medium-sized companies to experiment with simple climate scenarios analysis. These analyses can be risk or impact-oriented and have different parameters, approaches or assumptions, such as:

  • different time horizons
  • different reference scenarios
  • quantitative vs. qualitative data
  • a sector-specific vs. cross-sectorial view
  • assumptions about the availability of certain resources, like natural gas.

The purpose of such scenario analysis is to analyse possible futures by examining alternative possible outcomes.

Are you interested to learn more about climate risk scenario analysis and the TFCD? Check out the “CDP Technical Note on Scenario Analysis” or enrol in the free online course “Climate Change: Financial Risks and Opportunities” by EIT Climate-KIC partner Imperial College London.

With the carbon costs of travel in mind, Climate Innovation Summit session summaries are available online for those who cannot attend—and for review for those present. These summaries aim to extract the key debates, dialogues, and learnings from each #MissionFinance session.

 
Location
Ireland
Related Goal
Goal 11: Democratise climate risk information
Articles you may be interested in
Opinion
Going beyond investments in single-point solutions, an Opinion by Kirsten Dunlop
Kirsten Dunlop CEO, EIT Climate-KIC
Going beyond investments in single-point solutions, an Opinion by Kirsten Dunlop
In The News
The climate emergency demands bold policy innovations – can cities d...

While the challenges of climate change and a global...

The climate emergency demands bold policy innovations – can cities deliver? 
In The News
EIT Climate-KIC joins circular economy side event at UN High Level Political F...

“Bold leaders are needed to drive a collaborative approach...

EIT Climate-KIC joins circular economy side event at UN High Level Political Forum on Sustainable Development
In The News
EIT Climate-KIC and Silesian Metropolis join forces to transform Europe’s la...

EIT Climate-KIC and the Metropolitan Association of Upper Silesia...

EIT Climate-KIC and Silesian Metropolis join forces to transform Europe’s largest coal region in the face of the climate crisis
In The News
Anders Wijkman represents EIT Climate-KIC at the International Society for the...

Speaking online at the inaugural Conference of IS4CE—the International...

Anders Wijkman represents EIT Climate-KIC at the International Society for the Circular Economy Conference
In The News
Vienna’s journey to carbon neutrality

EIT Climate-KIC is working with the city of Vienna...

Vienna’s journey to carbon neutrality
In The News
EIT Climate-KIC receives €8.4 million for innovation projects that stimulate...

Eleven climate innovation projects across Europe tackling COVID-19 related...

EIT Climate-KIC receives €8.4 million for innovation projects that stimulate job creation and support a post COVID-19 green recovery
In The News
CEO Kirsten Dunlop represents EIT Climate-KIC at Climate Policy Forum

On 25 June, EIT Climate-KIC attended the Climate Policy...

CEO Kirsten Dunlop represents EIT Climate-KIC at Climate Policy Forum
In Detail
A net zero future offers significant opportunities for the European economy,...

EIT Climate-KIC’s views on the EU 2030 Climate Target Plan.  The recent announcements from the European Commission on the EU Recovery Plan from the...

A net zero future offers significant opportunities for the European economy, society and citizens
In The News
EIT Climate-KIC supported LOOP-Ports project wins prestigious sustainability a...

The LOOP-Ports project, led by the Fundación Valenciaport  and funded by EIT Climate-KIC,...

EIT Climate-KIC supported LOOP-Ports project wins prestigious sustainability award
In The News
EIT Climate KIC joins roundtable as Republic of Korea moves Green Deal forward

On 24 June, EIT Climate-KIC attended the 7th Green...

EIT Climate KIC joins roundtable as Republic of Korea moves Green Deal forward
In our community
Water scarcity in Southern Europe: Manufacturing expert insights
Water scarcity in Southern Europe: Manufacturing expert insights
Opinion
A scientist’s opinion: Interview with Cliona Howie Del Rio about systems thinking
A scientist’s opinion: Interview with Cliona Howie Del Rio about systems thinking
In Detail
Citizen activation is essential for Europe to meet its climate ambition

EIT Climate-KIC provides ideas for action under the European Climate Pact. The debate on how to achieve ambitious climate targets is often dominated by...

Citizen activation is essential for Europe to meet its climate ambition
In The News
EIT Climate-KIC shines at the GLF Bonn Digital Conference, the year’s la...

EIT Climate-KIC’s Director of Sustainable Land Use and member...

EIT Climate-KIC shines at the GLF Bonn Digital Conference, the year’s largest global digital conference on the environment
In The News
EIT Climate-KIC supported Climeworks raises over €67 million to expand its c...

Climeworks, the world leader in capturing CO2 from air,...

EIT Climate-KIC supported Climeworks raises over €67 million to expand its carbon dioxide removal capacities
In The News
EIT Climate-KIC supported Zeleros raises €7 million for the development of h...

EIT Climate-KIC supported Zeleros Hyperloop has completed a financing...

EIT Climate-KIC supported Zeleros raises €7 million for the development of hyperloop in Europe
In our community
A just transformation for Rugeley, as the power station comes down
A just transformation for Rugeley, as the power station comes down
In Detail
Challenging paradigms as the gateway to innovation: New IIPP report for EIT ...

EIT Climate-KIC partner the UCL Institute for Innovation and Public Purpose (IIPP), which works on changing how public value is imagined, practiced and evaluated...

Challenging paradigms as the gateway to innovation: New IIPP report for EIT Climate-KIC’s Landscapes as Carbon Sinks Deep Demonstration
In our community
Water scarcity in Southern Europe: Raw materials expert insights
Water scarcity in Southern Europe: Raw materials expert insights
In Detail
Challenge-led system mapping: A knowledge management approach

The challenge-led system mapping approach responds to the need to improve the practitioner’s capacity to move towards system change by providing mechanisms by which...

Challenge-led system mapping: A knowledge management approach
In The News
EIT Climate-KIC is restructuring to deliver systems transformation for climate...

EIT Climate-KIC is restructuring to provide “systems transformation as...

EIT Climate-KIC is restructuring to deliver systems transformation for climate change
In our community
Water scarcity in Southern Europe: Food expert insights
Water scarcity in Southern Europe: Food expert insights
In The News
EIT Climate-KIC and partners reassess our values in the ‘new normal’

EIT Climate-KIC, together with Edgeryders, ETH Zurich and IOTA,...

EIT Climate-KIC and partners reassess our values in the ‘new normal’
In our community
Water scarcity in Southern Europe: Climate expert insights
Water scarcity in Southern Europe: Climate expert insights
Opinion
Who’s doing what: A news round-up of selected COVID-19 responses and recovery plans
Felicity Spors Head of International Affairs, EIT Climate-KIC
Who’s doing what: A news round-up of selected COVID-19 responses and recovery plans
In The News
Co-Action carbon capture project opens new field plots

Yesterday, EIT Climate-KIC community member ‘Co-Action,’ a carbon capture...

Co-Action carbon capture project opens new field plots
In Detail
Implications of the COVID-19 pandemic for global sustainable finance: An int...

The UN Environment convened Financial Centres for Sustainability (FC4S) recently published a working paper, supported by EIT Climate-KIC, on the implications of the COVID-19...

Implications of the COVID-19 pandemic for global sustainable finance: An internal framework for response strategies
In Detail
A cartoonathon: Using humour to drive insights

Last week, in an event supported by EIT Climate-KIC, over 150 participants from more than 60 countries took part in a virtual ‘cartoonathon’ to...

A cartoonathon: Using humour to drive insights
In The News
EIT Climate-KIC launches Call for Proposals to support post-COVID-19 green rec...

EIT Climate-KIC’s ‘Extraordinary Post COVID-19 Regeneration Call 2020’ will...

EIT Climate-KIC launches Call for Proposals to support post-COVID-19 green recovery