Advisory

TCFD-aligned financial disclosures

Industry leaders on climate risk disclosure

Acclimatise is at the forefront of developing methodologies and metrics that help corporates and financial services organisations to identify, quantify, and disclose physical climate risks and opportunities. The regulatory environment governing the disclosure of climate risk is changing rapidly in Europe and beyond. In 2015, France introduced laws mandating climate disclosure for institutional investors and asset managers, in 2017 the Financial Stability Board’s Taskforce on Climate-related Financial Disclosure published recommendations for climate disclosure, and in 2018 the High-Level Expert Group’s recommendations to the European Commission advocated regulatory action. The direction of travel is clear; it pays to be prepared.

Working with us

Acclimatise offers a range of specialist tools developed specifically to support TCFD-related disclosures. From portfolio wide to deep-dive analyses of physical climate risks and opportunities, Acclimatise can provide your organisation with a comprehensive solution across all four core element of the TCFD recommendations, namely governance, strategy, risk management, and metrics and targets. We have been applying scientifically robust scenarios to our projects for over 15 years. We now apply this vast experience to our TCFD work, for the benefit of our major corporate and financial service customers.

Talk to our experts today: Laura Canevari & Robin Hamaker-Taylor.

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Showcase: Piloting the TCFD recommendations with commercial banks

The UN Environment Finance Initiative (UNEP FI) and Acclimatise, working with 16 of the world’s largest banks, have released ground-breaking methodologies aimed to help banks understand physical climate risks and opportunities in their loan portfolios. The methodologies, published in the report Navigating a new climate, support the implementation of TCFD recommendations. Using the methodologies banks can begin to assess physical climate risks on key credit risk metrics for climate-sensitive industry sectors. The guidance also sets out how banks can start to evaluate opportunities to support their clients in responding to the resilience challenge.

“The physical impacts of climate change may pose a risk to banks’ loan portfolios… Once banks understand the scale of the risks, this will be a milestone that will encourage other corporates to take climate risk management seriously. Building resilience to physical climate impacts also presents banks with investment opportunities. Those that understand this best will have a competitive advantage.”

Dr Richenda Connell Acclimatise CTO and co-founder

Access the Navigating a new climate report by clicking here.

NavigatingANewClimate

Climate-related disclosure services

Our work

Sector-wide TCFD benchmarking for major FTSE100 multinational

Acclimatise deployed its TCFD benchmarking tool and database to assess the progress of our FTSE100 client in comparison to its peers. 15 key competitors were benchmarked, utilising specialist analysis across a range of data sources, and scored against multidimensional indicators, structured according to the four TCFD core elements. The results of the benchmarking exercise have been used for internal awareness raising, including making the case for action amongst senior leadership, and to help identify gaps / areas of improvement in the client’s current performance and to formulate an action plan to increase the company’s climate resilience in the future.

Physical climate risk and opportunity disclosure metrics for corporates

Acclimatise formed part of the technical secretariat which guided the European Bank for Reconstruction and Development (EBRD) and Global Centre of Excellence on Climate Adaptation (GCECA) –  the predecessor to the Global Center on Adaptation (GCA) – to produce a set of disclosure recommendations for corporates. The project resulted in a guidance report, Advancing TCFD guidance on physical climate risks and opportunities which builds on the TCFD recommendations and presents practical guidance for corporates looking to disclose their risks and opportunities with regard to physical climate impacts. This report is the result of a six-month dialogue between industry-led working groups composed of representatives of corporates, financial institutions and regulators. Acclimatise partnered with Four Twenty Seven in this project.

TCFD-related assessment of the governance and risk management of climate, environmental and social risk in Mexican banks

Acclimatise analysed the progress of Mexican banks in achieving TCFD recommendations by reviewing their current governance and environmental, climate and social (EC&S) risk management frameworks and activities. We achieved this in three ways: (1) auditing, utilising our in-house audit tool; (2) international benchmarking of good governance practices for climate risk management; and (3) the development of a user-friendly and bespoke tool for TCFD-readiness self-evaluation and comparison with peers through a common-metrics framework. The project was also supported by Acclimatise-led capacity building workshops in Mexico.

Full TCFD-audit for confidential international extractive company

Acclimatise deployed its 80-point audit methodology to assess compliance of this mining company’s draft assessment and disclosure against the TCFD recommendations, including identifying and describing areas for improvement. The review also assessed the technical rigour of the supporting work undertaken by the company, as well as identifying examples of emerging ‘best in class’ reporting against TCFD recommendations, by reference to other mining companies and similar sectors’ disclosure activities.

 

Developing guidance to increase the climate resilience of large infrastructure investments

Acclimatise helped develop a new guidance document to increase the climate resilience of large infrastructure investments. The Lenders’ Guide for Considering Climate Risk in Infrastructure Investments breaks down the ways in which physical climate risks might affect key financial aspects of prospective infrastructure investments. Ten sub-sectors, including airports, marine ports, gas and oil transport and storage, power transmission and distribution, wind-based power generation, data centres, telecommunications, commercial real estate, healthcare, and sports and entertainment, were analysed and illustrated with topical examples. Acclimatise partnered with Climate Finance Advisors (CFA), and Four Twenty Seven to produce this document.

 

Mapping and benchmarking physical climate change risk methodologies for the EIB’s portfolio

Acclimatise conducted a systematic review for the European Investment Bank of available methodologies to support financial disclosure of portfolio physical climate change risks. The project assesses the methodologies on their suitability for assessment of physical risks across EIB’s portfolio, taking into account the instruments (lending, blending and advising), geographical and sectoral spread of EIB activities and availability of data. The review aims to improve the Bank’s understanding of approaches and methodologies in support of assessing the possibilities for the financial disclosure of physical climate risk.