TCFD & Climate
Scenario Analysis
Protect Enterprise Value
To appropriately incorporate the potential effects of climate change into their planning processes, organizations need to consider how climate-related risks and opportunities may evolve and their potential business implications under different conditions.
It is clear that the TCFD is far more than a set of reporting guidelines. In fact both business and policy communities have embraced the TCFD as a framework for strategic change and innovation.
2023 is a Critical Year
For climate finance, the TCFD will take a central role in driving corporate actions towards a low- and zero-carbon economy by facilitating constructive dialogues between institutional investors/financial institutions and business corporations.
Global Disruptions
Due to climate, war, supply chain inflation, COIVD-19 are all important for effective scenario analysis. One way to assess such implications is through the use of scenario analysis to understand externalities.
The CLAIM8 TCFD services group focus on risk assessments, and scenario development across sectors, with non-obvious intelligence, context, connections, and future scenarios you need to understand to effectively navigate in the year 2023 and beyond.
C8 TCFD Services provides guidance on risks, and possible scenarios organizations and portfolios will be exposed to delivering context and clarity, for our rapidly changing world.
Does your organization or portfolio conduct scenario analysis?
Have you developed a range of scenarios for climate change including geopolitical and transitional issues?
How are you communicating your climate risk disclosures to reflect this critical scenario analysis?
The TCFD is chaired by Michael R. Bloomberg.
CLAIM8 TCFD Services provides guidance on risks, and possible scenarios organizations and portfolios will be exposed to delivering context and clarity, for a rapidly changing world.
Does your organization or portfolio require TCFD reporting?
Have you developed your scenarios for climate change?
How are you preparing climate risk disclosures?
The G20 Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) released recommendations in June 2017, which highlight the importance of using scenario analysis to assess climate change related impacts within the financial sector.
It calls for the assessment of both the risk and opportunity side of transition and physical climate change impacts, and creates a reporting framework that allows institutions to prepare themselves for upcoming regulations.
“We are just at the beginning of the transition towards a low carbon economy. As a reinsurer that has been researching the effects of climate change for almost 30 years, as a large asset owner and as a long-term investor, we have the chance to step up to the next level and help shape tomorrow’s solutions. There are clear benefits of having more transparency about climate related risks and opportunities.”
– David Cole, Group Chief Financial Officer, Swiss Re Ltd.
Scenarios as a Strategy
C8 Scenarios help organizations understand climate-sensitive assets, activities, locations, and value chains and develop mitigation and adaptation strategies to offset these risks and find new opportunities.
C8 TCFD Scenario Services uses C8 PlanetScan Pro, to identify climate-sensitive assets and supply chains to provide guidance and strategy on risks, mitigations, and adaptations. The possible climate scenarios that organizations and portfolios will be exposed to provide both context and clarity to help plan for a rapidly changing world.
By using our AI tools coupled with climate models, global Intelligence, data, and on the ground reports the non-obvious context of change and planetary health is relayed. Each scenario is tailored to your organization or portfolio and includes potential geopolitical, economic, technological, cultural, and civic developments worldwide.
TCFD is becoming increasingly important within the U.S., and now Asian Countries, Switzerland, and the U.K. are announcing mandatory climate disclosures by 2025. C8 has developed an automated platform that will allow any company to fulfill this requirement by developing climate adjusted scenarios and track their climate exposure at all times.
What is a scenario?
A scenario describes a path of development leading to a particular outcome.
Scenarios are not intended to represent a full description of the future, but rather to highlight central elements of a possible future and to draw attention to the key factors that will drive future developments.
They are hypothetical constructs, not forecasts, predictions or sensitivity analyses.
What is scenario analysis?
Scenario analysis is a tool to enhance critical strategic thinking.
A key feature of scenarios is that they should challenge conventional wisdom about the future.
In a world of uncertainty, scenarios are intended to explore alternatives that may significantly alter the basis for “business-as-usual” assumptions.