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
In The News
Why sustainable water management needs a systemic solution

Ensuring that fresh water is available, in a sustainable...

Why sustainable water management needs a systemic solution
In The News
Integrating nature with technology to strengthen climate adaptation

The European Commission released the new EU Climate Adaptation...

Integrating nature with technology to strengthen climate adaptation
In The News
EIT Climate-KIC is a key player in helping Europe adapt to climate change

EIT Climate-KIC welcomes the new EU strategy on adaptation...

EIT Climate-KIC is a key player in helping Europe adapt to climate change
In The News
Edinburgh: building climate resilient infrastructure and communities

A labyrinth of cobblestone streets, dimly lit and presided...

Edinburgh: building climate resilient infrastructure and communities
In The News
Residents of Kessel-Lo, Belgium, are invited to shape the future of their neig...

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

Residents of Kessel-Lo, Belgium, are invited to shape the future of their neighbourhood
In The News
Improved urban parks increase communities’ climate resilience

Start Park, a project led by citizens from Florence,...

Improved urban parks increase communities’ climate resilience
In The News
New accelerator programme geared towards systemic change secures key partners

Following its Open Call, the New Accelerator programme has...

New accelerator programme geared towards systemic change secures key partners
In The News
New videogame builds climate awareness among players

Change Game, a videogame financed by EIT Climate-KIC and...

New videogame builds climate awareness among players
In The News
Organic and homemade food brought to the dining rooms of large corporations

Carlota Mateos and Juan Vila, co-founders of PlenEat have...

Organic and homemade food brought to the dining rooms of large corporations
In The News
Climeworks added to Microsoft’s climate portfolio

EIT Climate-KIC supported Climeworks, a carbon capture technology, is...

Climeworks added to Microsoft’s climate portfolio
In The News
Circular Slovenia named in 100 Climate Policy Breakthroughs

The peer-to-peer learning platform for governments, Apolitical, included EIT...

Circular Slovenia named in 100 Climate Policy Breakthroughs
In The News
New tool uses satellite imagery to accelerate sustainable agriculture

Supported by EIT Climate-KIC and developed by its partner...

New tool uses satellite imagery to accelerate sustainable agriculture
In The News
EIT Climate-KIC at the Climate Adaptation Summit 2021

EIT Climate-KIC will be taking part in the Climate...

EIT Climate-KIC at the Climate Adaptation Summit 2021
In The News
Green Invest from Stuttgart and Start Park from Florence win Climathon Awards ...

A total of 140 teams of citizen finalists applied...

Green Invest from Stuttgart and Start Park from Florence win Climathon Awards 2020
In The News
Biden’s Opportunity for Reinventing Climate Innovation

Joe Biden will be sworn in today as 46th...

Biden’s Opportunity for Reinventing Climate Innovation
In The News
EIT Climate-KIC’s Open Accelerator: collaboration, not competition

It is no secret that to tackle climate change...

EIT Climate-KIC’s Open Accelerator: collaboration, not competition
In The News
New platform inspires sustainable Nordic wood construction

This week marks the launch of NoMuWood.com, an EIT...

New platform inspires sustainable Nordic wood construction
In The News
European Union launches Pact to support citizen-led climate action

On Wednesday 16 December, the European Commission is launching...

European Union launches Pact to support citizen-led climate action
In The News
“An avalanche of hope and energy”: The power of Paris

Our Climate Champions 2020: Melissa Capcha. Five years on...

“An avalanche of hope and energy”: The power of Paris
In The News
“Let’s find ways to take action within our abilities”

Our Climate Champions 2020: Gopal Kumar Mohoto. Five years...

“Let’s find ways to take action within our abilities”
In The News
“Climate change is outpacing us, there is no time for excuses”

Our Climate Champions 2020: Cristina Aleixendri Muñoz. Five years...

“Climate change is outpacing us, there is no time for excuses”
In The News
COP26 gives Scotland “a platform to showcase… what’s possible”

Our Climate Champions 2020: Kit England. Five years on...

COP26 gives Scotland “a platform to showcase… what’s possible”
In The News
COP26 might be postponed but “climate action cannot wait”

Our Climate Champions 2020: Melani Furlan. Five years on...

COP26 might be postponed but “climate action cannot wait”
In The News
A climate service for flood risk mapping in urban areas

The SaferPlaces project, supported by EIT Climate-KIC, has created...

A climate service for flood risk mapping in urban areas
In The News
Raising climate awareness through art in the Glasgow City Region

The Glasgow City Region uses arts as a means...

Raising climate awareness through art in the Glasgow City Region
In The News
Helping Europe achieve a circular economy transition

EIT Climate-KIC, EIT RawMaterials, EIT Digital, EIT Food, EIT...

Helping Europe achieve a circular economy transition
In The News
EIT Climate-KIC and EASME host WCEF event on circular economy

The World Circular Economy Forum brings together business leaders,...

EIT Climate-KIC and EASME host WCEF event on circular economy
In The News
Citizens across globe eager to contribute to a post-COVID recovery

Over 4,500 citizens from around the world will join...

Citizens across globe eager to contribute to a post-COVID recovery
In The News
Transformative climate action and COP26: Join our webinar

Are you working to deliver transformative change for a...

Transformative climate action and COP26: Join our webinar
In The News
Madrid, Amsterdam and Milan: Three cities putting citizen participation at the...

The Extinction Rebellion or Fridays for Future global actions...

Madrid, Amsterdam and Milan: Three cities putting citizen participation at the heart of climate action