Embedded Files
Greenhouse Gas (GHG) Inventory • GHG Protocol • EU CBAM Declaration • Product Carbon Footprint (PCF) Report • ESG Sustainability Report / IFRS (S1, S2
Comparison of TCFD and TNFD differences
1.TNFD Nature-related Financial Disclosures
TNFD stands for Taskforce on Nature-related Financial Disclosures. It is a global initiative and framework designed to help businesses and financial institutions identify, manage and disclose nature-related risks and opportunities. The primary goal of the TNFD is to enhance transparency in nature-related financial information, prompting markets and investors to consider natural capital and biodiversity more comprehensively in their decision-making processes.
2. TCFD stands for Climate-related Financial Disclosures
TCFD stands for Task Force on Climate-related Financial Disclosures. The TCFD is a working group established by the Financial Stability Board (FSB) in 2015 to help businesses and financial institutions disclose financial risks and opportunities related to climate change. The TCFD provides a framework to facilitate more consistent and transparent climate-related financial disclosures, helping investors, lenders, and insurers make more informed decisions.
TNFD Vs. TCDF Difference Comparison/Data Source/Summary of Bu-Jhen Low-Carbon Strategy
The TCFD Miss Work mission has been continued by the ISSB Committee, and what parts of the TCFD framework will the S1 and S2 standards replace in climate-related financial disclosures in the future?
Since its launch in 2017, the TCFD (Task Force on Climate-related Financial Disclosures) has become an important framework for guiding companies to disclose climate-related financial information. It aims to help companies assess and disclose the climate change risks and opportunities they face, enhancing transparency for investors and other stakeholders. has been an important framework for guiding companies on how to disclose climate-related risks and opportunities. However, with the increasing global attention to climate change and sustainable development, the International Sustainability Standards Board (ISSB) was established in 2021 to develop a globally unified sustainability reporting standard to improve the comparability and consistency of sustainability reporting. The ISSB's S1 and S2 standards, which focus on general sustainability disclosure requirements (S1) and climate-related disclosure requirements (S2), respectively, are expected to replace or integrate the TCFD framework, especially in climate-related financial disclosures. Here are a few key areas where the S1 and S2 guidelines may have an impact on the TCFD framework:
How the S1 and S2 guidelines will impact the TCFD framework
1.Integrating and expanding the TCFD framework:
Integration: The S1 and S2 guidelines build on the TCFD and integrate it into the broader sustainability reporting standards. This means that the core principles of the TCFD – governance, strategy, risk management, and metrics and targets – will be incorporated into more comprehensive climate and sustainability reporting.
Expansion: S1 and S2 will expand the TCFD's focus to include not only climate-related financial risks and opportunities, but also broader sustainability issues such as biodiversity loss and resource depletion.
2.Improve Reporting Quality and Consistency:
Detailed Guidance: ISSB standards will provide more detailed guidance and methodologies to help companies conduct more accurate climate risk assessment and disclosure.
Comparativeness: Through unified standards, the consistency and comparability of corporate reporting will be enhanced, allowing investors and other stakeholders to more effectively assess and compare corporate climate risks.
3. Enhanced Impact on Investment Decisions:
Decision Relevance: By providing more comprehensive and consistent climate-related information, the S1 and S2 guidelines will enhance the impact of corporate disclosures on investor and market decisions.
Risk Management: More detailed disclosure requirements will help businesses better manage their climate risks, enhancing their long-term sustainability and attractiveness.
4. Fostering Global
Dialogue and Cooperation: The ISSB aims to facilitate dialogue and collaboration on climate-related and other sustainability issues on a global scale, providing a common set of reporting standards for multinational corporations.
Policy Development: The introduction of the S1 and S2 guidelines will facilitate collaboration and coordination among global policymakers and regulators on climate-related financial disclosures.
5. Replacing or Expanding the TCFD Framework
While the S1 and S2 guidelines will replace or expand the TCFD framework in some ways, their core purpose is to establish a more comprehensive and unified set of global sustainability and climate-related financial disclosure standards. This will not only strengthen the existing TCFD framework but also promote transparency, consistency, and comparability of climate-related information on a global scale, ultimately supporting global climate action and the achievement of the Sustainable Development Goals.
Broader Scope: The S1 and S2 guidelines will cover a wider range of sustainability issues than the TCFD, including but not limited to climate change. This means that companies need to evaluate and disclose more sustainability issues, not just climate-related risks.
More Detailed Disclosure Requirements: ISSB standards are expected to provide more specific disclosure guidelines, helping companies provide more nuanced and consistent information. This may involve specific assessments of financial impacts, approaches to climate risk management, and how businesses integrate climate change considerations into their overall strategies.
Enhanced Comparability and Consistency: By implementing unified global standards, the ISSB aims to improve comparability and consistency in reporting across different businesses. This will make it easier for investors and other stakeholders to understand and compare climate-related risks and opportunities for businesses. Integration and Interaction: ISSB guidelines will facilitate better integration of TCFD recommendations and interaction with other sustainability reporting frameworks and standards, such as the Global Reporting Initiative (GRI) and SASB standards.
In conclusion, the ISSB's S1 and S2 standards will play a key role in climate-related financial disclosures in the future, aiming to establish a globally unified, highly consistent and comprehensive sustainability reporting system. This will help companies provide more comprehensive, transparent, and comparable climate-related information, thereby supporting the global transition to net-zero emissions and sustainable development.
When will the TCFD Working Group mandate end?
The TCFD (Task Force on Climate-related Financial Disclosures) mandate has not been declared over. Since its establishment by the Financial Stability Board (FSB) in 2015, TCFD has been actively promoting and improving standards and practices for climate-related financial disclosures. The TCFD aims to raise market participants' awareness of climate change risks and promote more transparent financial reporting, thereby supporting more effective capital allocation to address the challenges of climate change.
The framework introduced by the TCFD provides a series of recommendations aimed at guiding companies in assessing and disclosing financial risks related to climate change. These recommendations revolve around four main themes: governance, strategy, risk management, and metrics and goals.
With the establishment of the International Sustainability Standards Board (ISSB) and its publication of global sustainability reporting standards, including climate-related reporting standards, the work of the TCFD may be more closely integrated or partially integrated with the work of the ISSB. However, this does not mean that the TCFD's mandate has ended or been replaced. Instead, the TCFD's recommendations and framework remain the foundation for climate-related financial disclosures in many jurisdictions and market practices around the world.
For any new developments or official closure announcements of the TCFD mission, it is recommended to refer directly to official announcements and updates from the Financial Stability Board (FSB) or the International Sustainability Standards Board (ISSB).
What are the core elements of the main disclosures of the Climate-related Financial Disclosures Report (TCFD) that should be noted?
氣候相關財務揭露報告（TCFD）主要揭露的核心要素有哪些應注意那些.mp4According to the official website of the Task Force on Climate-related Financial Disclosures (TCFD), the TCFD has published a framework to help public companies and other organizations more effectively disclose climate-related risks and opportunities through their existing reporting processes. The core elements of this framework include governance, strategy, risk management, and metrics and objectives, aiming to enhance the clarity, comprehensiveness, and quality of financial markets' impact on climate change. The following is a consolidated discussion and enumeration based on the TCFD recommendations:
1.Governance:
Disclosure of how the organization manages climate-related risks and opportunities.
Recommended disclosures include a description of the board's oversight of climate-related risks and opportunities, and management's role in assessing and managing these risks and opportunities.
2.Strategy:
Disclose the impact of existing and potential climate-related risks on the organization's financial planning.
Recommended disclosures include a description of the organization's perception of short, medium, and long-term climate-related risks and opportunities, the possible impact of climate-related risks and opportunities on the organization's operations, strategy, and financial planning, and the organization's resilience strategy in the face of different climate scenarios.
3.Risk Management:
Disclose the organization's process of reviewing, evaluating, and managing climate-related risks.
Recommended disclosures include a description of the organization's process for reviewing and assessing climate-related risks, the organization's processes for managing climate-related risks, and how these mechanisms are integrated into the overall risk management system.
4.Metrics and Targets:
Disclose key metrics and goals for organizations to assess and manage climate-related risks and opportunities.
Recommended disclosures include disclosing the metrics used by the organization to assess climate-related risks and opportunities in its strategy and risk management processes, Scope 1, Scope 2, and Scope 3 (as applicable) greenhouse gas emissions and related risks, as well as a description of the organization's goals and levels of compliance for managing climate-related risks and opportunities.
This framework not only helps improve transparency and enables investors and other stakeholders to better assess their climate risks, but also encourages companies to take more proactive measures to mitigate the impact of climate change and capture relevant opportunities.
The core framework of the Task Force on Climate-related Financial Disclosures (TCFD) is discussed, including its in-depth analysis of governance, strategy, risk management, and metrics and targets.
1. Governance
The purpose of the governance framework is to disclose the management and oversight mechanisms within the organization for climate-related risks and opportunities. This includes:
Board Responsibilities: Explain how the board oversees climate-related risks and opportunities, including its role in setting the company's climate strategy and goals.
Role of Management: Details management's responsibilities in identifying, assessing, and managing climate-related risks and opportunities, and how these risks are reported to the Board.
2. Strategy
The strategy section requires organizations to disclose the actual and potential impacts of climate change on their business, strategy, and financial planning, including:
Identification of risks and opportunities: Describe how the organization identifies short, medium, and long-term climate-related risks and opportunities.
Impact Assessment: Analyze the potential impact of these risks and opportunities on business operations, strategic planning, and financial performance.
Adaptation and Resilience: Explain the adaptability and resilience of the organization's business and strategy in the face of different climate change scenarios.
3. Risk Management
The risk management section focuses on how organizations identify, assess, and manage climate-related risks:
Risk assessment process: Disclose how organizations identify and assess climate-related risks.
Risk Management Procedures: Explain how the organization manages or mitigates these risks, including specific measures and strategies.
Integrated Risk Management: Details how organizations integrate climate-related risk management into their overall risk management framework.
4. Metrics and Targets
The Metrics and Targets section requires organizations to disclose specific metrics and targets used to assess and manage climate-related risks and opportunities:
Key Performance Indicators (KPIs): Provide key metrics used by organizations to measure and manage climate-related risks and opportunities, such as carbon intensity, energy efficiency, and renewable energy usage.
Greenhouse Gas Emissions Reporting: Provides detailed reports on your organization's direct (Scope 1) and indirect (Scope 2 and Scope 3) greenhouse gas emissions and explains how this data can be used to set emission reduction targets.
Goal Setting and Monitoring: Explain the climate-related goals set by the organization, including reducing greenhouse gas emissions, improving energy efficiency, or increasing renewable energy use, and how to monitor and report on progress.
Through the detailed disclosure of these four core elements, the TCFD aims to promote a better understanding, assessment, and management of the impact of climate change on businesses, thereby guiding more responsible and sustainable investment decisions. This framework not only facilitates investors and stakeholders' assessment of corporate risks but also encourages companies to actively address climate change and promote green and low-carbon transformation.
When discussing climate-related financial disclosures (TCFDs), it is recommended to include icons or charts that can significantly enhance the readability and appeal of the information. Here are some suggestions to enrich the content of the TCFD disclosure report with more detailed explanations and visual elements:
Key Elements of Writing a TCFD Report Emphasize
1.Governance
Text Description: Describe how the organization's governance structure handles climate-related risks and opportunities, including the role of the board of directors and the responsibilities of management.
Illustration: Organizational governance structure diagram showing the interaction and responsibility allocation of the board of directors, climate risk committee, and other key management.
2. Strategy
Text Description: Explain the impact of climate change on an organization's business, strategy, and financial planning, including short, medium, and long-term considerations.
Illustration Suggestion: Strategic impact flowchart showing how climate change affects an organization's operations and strategic planning.
3. Risk Management
Text Description: Describes in detail how an organization identifies, assesses, and manages climate-related risks.
Illustration suggestion: Risk management flowchart, including risk identification, assessment, management measures, and monitoring processes.
4.Metrics and Targets
Text Description: Provides a report on metrics and targets for assessing and managing climate-related risks and opportunities, including greenhouse gas emissions.
Icon suggestions: Dashboards or progress bars of metrics and targets that show key climate action indicators and targets being achieved.
5.Additional Discussions and Case Studies:
Provide practical case studies demonstrating how TCFD recommendations have been implemented in different industries and regions, including success factors and challenges encountered.
Best Practice Guides: Collate best practices and guiding principles within the industry to help organizations develop and implement climate-related financial disclosure strategies.
List of Tools and Resources: Provides a list of tools, templates, and other resources to help implement TCFD recommendations, including carbon footprint calculation tools and risk assessment frameworks.
Through these detailed descriptions, icons, and charts, the company's official website will provide a comprehensive and in-depth perspective to help visitors understand and implement the TCFD's climate financial risk disclosure recommendations. This not only enhances the professionalism and practicality of your website content but also helps your customers and website visitors better understand the challenges and opportunities brought about by your company's climate change.
What AR4, AR5, AR6, and what are their scenario functions for future climate projection?
I. Climate Assessment Report (AR)
The United Nations Intergovernmental Panel on Climate Change (IPCC) is an organization dedicated to integrating global climate change scientific research results. The committee publishes assessment reports every 5 to 7 years, aiming to provide the latest progress on international climate change-related scientific achievements for policymakers, policymakers and academia to use. The IPCC published its first to fifth assessment reports in 1990, 1995, 2001, 2007 and 2014 respectively, and began publishing the sixth assessment report (AR6) in 2021.
II. AR6 innovation in interactive charts
Easy to judge the future projection function is an innovative feature of AR6, which shows the distribution of pattern estimation data in time and space in the form of interactive charts. This presentation helps users more easily understand the characteristics of the pattern and the estimated results. This feature provides the ability to compare different patterns, different scenarios, and different time periods, allowing users to gain a deeper understanding of the complexity and variability of climate change. Before making a detailed discussion of AR4, AR5, and AR6, we first review the history of the IPCC and its contribution to climate change research. The IPCC was established to provide global scientific assessments, assist countries around the world in understanding the threat of climate change, and jointly formulate response strategies.
III.AR4~AR6 Advanced Differences
1.AR4 focuses on anthropogenic greenhouse gases
Released in 2007, it was an important synthesis of climate change science at that time. The report pointed out that global climate change is mainly due to greenhouse gases, particularly carbon dioxide, released by human activities. The release of AR4 has aroused greater global attention to climate change issues and has become a cornerstone of later climate action and international consultations.
2.AR5 Highlights Regional Development and Inequities in Climate Impacts
Released in 2014, AR5 further identifies the ongoing impacts of human activities on the climate system and provides a more detailed regional and sectoral assessment. The report highlights the inequalities of climate change, particularly on vulnerable regions and communities.
3.AR6 makes a summary and assessment of greenhouse gas reduction measures under extreme climate and global warming
AR6 is the latest report of the IPCC to date, released in 2021. This assessment further clarifies phenomena such as rising global temperatures, increased extreme weather events, and melting glaciers. AR6 calls for rapid reduction of greenhouse gas emissions and enhanced adaptation measures to mitigate the adverse impacts of climate change on ecosystems and society.
The introduction of future estimation is an important advancement in AR6. It uses CMIP5 and CMIP6 as the data foundation to enable users to more accurately query and compare pattern estimation data by statistically downscaling to high-resolution data. This further contributes to the understanding of climate change and the development of responses.
IV.The AR4~AR6 estimation model has been widely used around the world ,
and the release of AR4 to AR6 has attracted widespread attention around the world, with media reports and academic discussions. Concerns about climate change are growing, and the urgent need for action to address this global challenge is emphasized. Overall, AR4, AR5, and AR6 represent the IPCC's continuous deepening and updating of climate change science. These assessment reports provide a comprehensive and authoritative scientific basis for global climate change, helping to guide the global community to develop more specific and effective strategies to address climate change. The addition of future estimation functions will make it easier for users to understand complex pattern estimation data, driving broader participation and understanding.
V. Predicting climate patterns through estimation models
Through the future projection function, users can more intuitively understand the prediction results of climate models, providing professionals in various fields, decision-makers, and the general public with more accessible tools to understand and apply. Here is a further discussion of AR4, AR5, and AR6:
1.The Turning Point from AR4~AR6
AR4 is an important turning point in the history of the IPCC, which clearly points out the impact of human activities on climate change for the first time and highlights the potential risks of this change to global ecosystems and human society. The report identifies irreversible trends in global climate change, leading to broader discussion and action on climate change.
AR5 further deepens the understanding of climate change, and the report contains scientific data from meteorology, oceanography, earth science, and ecology, making the assessment more comprehensive. The report highlights the harm of climate change to regions and ecosystems around the world and provides more specific recommendations to address these challenges.
AR6 has gained a deeper understanding of the complexity of the climate system through the latest scientific research. The new knowledge mentioned in the report, such as more accurate weather models and more comprehensive data analysis, makes predictions of extreme weather events, sea level rise, ecosystem changes, etc. more confident.
One of the key points of AR6 is to emphasize the global need to accelerate the pace of reducing greenhouse gas emissions and actively implement adaptation measures to mitigate the adverse effects of climate change on the planet.
VI.Governments and companies have also proposed more specific climate action plans with the release of AR6
CMIP5 and CMIP6 are important projects to support AR5 and AR6, which collect data from global models to assess the predictive capabilities of global climate change. The statistical downscaling of the future projection function makes the climate change trends and characteristics of Taiwan more visible, helping to formulate response strategies in the region. Through Internet searches, we can find that the release of AR4 to AR6 has attracted widespread attention from the media and scientific community worldwide. Concerns about climate change continue to rise, and governments, businesses, and social organizations have also proposed more specific climate action plans. AR4 to AR6 represent the IPCC's evolving scientific assessment, providing important information about global climate change. The introduction of future estimation features will make these assessments more intuitive and interactive, providing users with better tools to gain a deeper understanding of the complexity of model projection data, fostering broader participation and collaboration to address global climate change challenges. In addition to providing a general overview of AR4 to AR6, it also delves deeper into the key insights and impacts brought by each assessment report
VII.Milestones in the Stages of AR4~AR6
1.The release of AR4
in 2007 was a significant milestone in climate science. One of its key findings was the identification of global climate change, especially rising temperatures. The report specifically focused on the increase in extreme weather events, melting glaciers, and rising sea levels, all attributed to the release of atmospheric greenhouse gases by human activities. The conclusions of AR4 have had a profound impact on driving global climate action and international cooperation.
2..AR5 More Concrete Analysis of the Effects of Human-Caused Climate Change
The subsequent AR5 further solidified AR4's scientific findings, highlighting the central role of human activities in climate change. The report provides deeper insights into extreme events, sea level rise, and ecosystem changes. The release of AR5 further promotes the agenda for climate action, especially in the process of international consultations and climate policy formulation.
3.AR6 Emphasizes the Severity of Extreme Climate Reality
The latest AR6 report was released against the backdrop of the evolving science of global climate change. AR6 emphasizes the reality and severity of global climate change and focuses on the impact of extreme events and ecosystems in more detail. The report strongly calls on countries to strengthen their emission reduction efforts to achieve global climate goals. The release of AR6 has not only aroused widespread discussion in the global media and scientific community, but has also attracted greater attention in the international political and environmental fields. The introduction of future estimation functions provides users with more specific and intuitive tools, allowing them to gain a deeper understanding of climate model prediction data. This interactive application makes climate change science more accessible and applicable, helping to promote broader social participation.
VIII.The world is paying attention to the issue of climate change
and from the data search results, we can see that the reports from AR4 to AR6 have attracted a lot of attention and discussion around the world. People are concerned about the impact of climate change and how to respond effectively. Governments, businesses, and NGOs have also responded to these reports by developing more specific climate action plans. Overall, AR4 to AR6 represent the IPCC's continuous efforts in scientific assessment of climate change, providing a comprehensive and authoritative scientific basis for global climate change. The addition of future estimation functions provides more advanced tools for scientific research and social participation, helping to deepen understanding and respond to global climate change challenges.
What is RCP value? What are SSPs metrics? What do these two do in TCFD climate-related risk financial disclosures?
I.Climate Scenario Model (1) RCP Value Significance
1. RCP Value Application and Definition
Under the framework of climate change risk assessment response and financial disclosure, RCP value (Representative Concentration Pathways) refers to (Representative Concentration Pathways), which are a series of scenarios that describe the concentration of greenhouse gases in the atmosphere in the future, and these scenarios are used in climate models to assess possible climate change.
RCP values typically include four different scenarios, including different emission scenarios, such as RCP2.6, RCP4.5, RCP6.0, and RCP8.5, which represent different greenhouse gas emissions, especially carbon dioxide (CO2) concentrations, in assessing possible climate change.
RCP2.6, RCP4.5, RCP6.0, RCP8.5 greenhouse gas concentration scenario map
A. RCP2.6 (Strong Emission Reduction Scenario)/1.0°C~1.8°C
Warming by 2100 Compared to Pre-Industrial Levels
The optimistic emission scenario of RCP2.6 suggests that it is possible to achieve lower levels of greenhouse gas emissions
if strong and immediate emission reduction measures are taken globally:
1. Low Emission Scenario:
RCP2.6 represents a low-emission scenario in which the global community adopts effective greenhouse gas emission reduction measures to minimize the impact of climate change, i.e., negative measures to continue carbon reduction.
2. Global Collaboration: Achieving RCP2.6 requires global collaboration, including governments, businesses, and all sectors of society working together to implement measures such as clean energy, energy conservation and emission reduction, to achieve clear greenhouse gas emission reduction goals.
3. Climate change adaptation: Under the RCP2.6 scenario, global temperature rise is expected to be relatively low, which will slow down the rate of extreme climate events and sea level rise, providing more time and opportunities to adapt to the environmental and social impacts of climate change.
4. Ecological Protection: RCP2.6 scenarios help reduce ecosystem pressure, reduce biodiversity loss, and protect the stability of the ecological environment.
RCP2.6 represents an optimistic scenario, emphasizing the importance of global cooperation and decisive action to achieve climate change mitigation goals, reduce negative impacts, and create more favorable conditions for future sustainable development.
B. RCP4.5 (Moderate Emission Reduction Scenario) / 2.6°C~4.8°C warming by 2100 compared to pre-industrial Celsius
The RCP4.5 scenario shows that if moderate emission reduction measures are implemented globally, it will be possible to
achieve relatively moderate emission levels:
1. Moderate emission reduction:
RCP4.5 represents a moderate emission reduction scenario, with the global community
gradually implementing a series of emission reduction measures in the future, but emission levels are still at moderate levels. This may involve initiatives such as shifting to cleaner energy sources, improving energy efficiency, and driving
technological innovation, i.e., the need for proactive measures to sustainably reduce carbon emissions.
2. Transition Phase:
The RCP4.5 scenario reflects a transitional phase where the global community is gradually moving away from high-carbon
development models and towards a more sustainable and low-carbon future.
3. Climate change impact:
Under the RCP4.5 scenario, the global temperature rise is expected to be higher, and it may face a certain degree of climate
change impact compared to the low-emission scenario. This includes an increase in extreme weather events and adaptive
pressures on ecosystems.
4. Sustainable development:
The RCP4.5 scenario emphasizes the direction towards more sustainable development, promoting the transformation of social and economic systems, with a greater focus on environmental protection and efficient use of resources.
RCP4.5 represents a future scenario for climate change adaptation based on moderate emission reductions. This scenario serves as a reminder of the need to step up efforts to further reduce emissions to address the challenges posed by climate change while driving the evolution of socio-economic systems towards more sustainable development.
C. RCP6.0 (Moderate Emission Scenario) / 2100 warming compared to pre-industrial levels of 2.6°C~4.8°C The RCP6.0 scenario suggests that if the world implements moderate emission reduction measures in the future, relatively high emission levels will be achieved:
1. Moderate emission reduction:
RCP6.0 represents a moderate-level emission reduction scenario, where the global
community implements a certain level of emission reduction measures in the future, but the emission level is still relatively high. This may include increasing the use of clean energy, improving energy efficiency, and promoting technological innovation, i.e., more aggressive and sustained emission reduction measures.
2. Gradual transition:
The RCP6.0 scenario reflects a gradual transition phase where the global community gradually
reduces its dependence on high-carbon energy sources, but more efforts are still needed to achieve lower greenhouse gas emission levels.
3. Climate change impact:
Under the RCP6.0 scenario, global temperature increases are expected to be higher, and
compared to the lower emission scenario, more significant climate change impacts may be experienced, including more frequent extreme weather events and adaptation pressures on ecosystems.
4. Sustainability Challenges:
The RCP6.0 scenario highlights the challenges of achieving more sustainable development. Society needs to find a balance between economic growth and emission reduction goals to ensure sustainability in the future. RCP6.0 represents a future scenario based on moderate emission reductions. Although there has been some progress in emission reduction, more efforts are still needed to achieve lower emission levels to mitigate the adverse effects of climate change while achieving sustainable development for society.
D. RCP8.5 (High Emission Scenario) / 3.7°C~4.8°C warming by 2100 compared to pre-industrial levels
The RCP8.5 scenario depicts a highly emission future, that is, relatively high emission levels will be achieved if significant emission reduction measures are not taken in the future:
1. High Emissions:
RCP8.5 represents a highly emission scenario where the global community fails to effectively mitigate greenhouse gas emissions in the future and continues to be highly dependent on fossil fuels and high-carbon energy.
2. Extreme climate change:
Under the RCP8.5 scenario, global temperature increases are expected to be relatively large, leading to more frequent and intense extreme weather events and possible sea level rise.
3. Ecosystem impact:
Due to high emissions, climate change under the RCP8.5 scenario may have serious impacts on global ecosystems, including biodiversity loss and ecological balance disruption.
4. Socio-economic instability:
RCP8.5 reflects an unsustainable development path that may lead to social and economic instability, as climate change impacts can exacerbate resource competition and social inequality. RCP8.5 represents a highly pessimistic future scenario, highlighting the extreme weather and social instability that may arise from not taking emission reduction measures. This scenario underscores the urgency of emission reduction and sustainability to avoid possible severe consequences in the future.
II.Climate Scenario Model (2) Significance of SSPs Indicators
1. Application and Definition of SSPs Indicators
SSPs are the abbreviation of Shared Socioeconomic Pathways, which are used to describe possible future socio-economic scenarios around the world, including changes in population, economic development, energy use, etc. SSPs typically include SSP1 (sustainable and sustainable), SSP2 (controlled progress), SSP3 (differentiated development), SSP4 (unstable world), and SSP5 (strong inequality and high-carbon development). Under the framework of the TCFD (Climate-related
Financial Disclosure Task Force), RCP values and SSPs are used to assess the potential impact of climate-related risks. RCP values provide climate change under different emission scenarios, while SSPs consider socioeconomic factors that directly impact the company's operating environment. By combining RCP values and SSPs information, companies can more comprehensively assess climate-related risks and develop corresponding climate adaptation and mitigation strategies to ensure their financial soundness.
5 SSPs climate scenario models
2. The IPCC proposed 5 SSP scenarios in the Sixth Assessment Report
The five shared socio-economic pathways (SSPs) proposed by the United Nations Panel on Climate Change (IPCC) in the Sixth Assessment Report are SSP1 to SSP5:
(1) SSP1 (Sustainability): Sustained Sustainability This scenario describes a global collaboration towards a future of sustainability and environmental protection. Socio-economic development centers on human well-being and environmental sustainability, emphasizing technological innovation, social equality, and collaborative cooperation.
(2) SSP2 (Intermediate Route): Under the SSP2 scenario of controlled progress, socio-economic development is relatively balanced, and countries strive to achieve sustainable development goals. There is some global uncertainty, but it is generally believed that cooperation is the key to achieving stable progress.
(3) SSP3 (Regional Competition): Fragmentation This scenario paints a picture of a future where regional disparities widen and social and economic inequalities increase. Some areas may achieve greater development, while others may struggle. Global climate action may be slower, leading to higher emission levels.
(4) SSP4 (Unequal Development): In an unstable world SSP4 scenario, Sesuke faces severe social, political, and economic challenges. Social unrest and uncertainty increase, global collaboration is hindered, and climate action may be limited, leading to higher emission levels.
(5)SSP5 (Fossil Fuel Development): Strong inequality and high-carbon development This scenario assumes that future socio-economic development is extremely uneven, and the world faces severe social and economic inequalities. Highly carbon-intensive development patterns persist, and climate policies may be significantly hindered, leading to higher emission levels.
These five SSP scenarios provide different perspectives on future development, helping to assess the possible impacts of different socio-economic pathways on climate change and sustainable development goals, and providing reference for formulating response strategies.
SSP1 Scenario ~ SSP5 Scenario Development Map/Source: TCCIP
Carbon reduction effectiveness and climate scenario map/Source: TCCIP
III.RCP and SSP and TCFD Climate Disclosure Framework
(RCP) values and the five shared socio-economic pathways (SSPs) in the IPCC report can be applied to the TCFD (Task Force on Climate-related Financial Disclosures) climate risk financial disclosure framework:
1. Application of RCP values:
(1) Risk assessment : Using different RCP values, businesses can simulate different climate change scenarios, allowing them to assess the physical risks their business may face, such as extreme weather events and rising temperatures.
(2) Transition (transition) risk: RCP values also provide a basis for assessing transition risks, allowing companies to assess the potential impact of climate policies and technological changes on their business based on different emission scenarios. 2. Application of SSP Scenarios:
(1) Socio-Economic Scenarios: Using SSP scenarios, companies can assess the possible impact of socio-economic changes on their business. This includes demographic changes, economic growth, technological innovation, etc., which will affect market demand, resource supply and government policies.
(2) Social Change: SSP scenarios also provide a framework for companies to understand possible social trends, such as social inequality, political stability, and human rights conditions, which may impact the business environment and operations. Integration into the TCFD framework:
(3)Risk identification: Under the TCFD framework, companies should conduct comprehensive identification of climate-related risks. By integrating RCP values and SSP scenarios, businesses can gain a more comprehensive understanding of the diversity and complexity of climate-related risks.
(4) Opportunity Identification: Companies can also use this data to identify business opportunities brought about by climate change, such as the demand for adaptive technologies and market changes.
3. Reporting and Disclosure:
(1) Clear Disclosure: In TCFD reports, companies should clearly disclose the RCP values and SSP scenarios they use, and how these scenarios affect their risks and opportunities. This helps investors and stakeholders better understand the climate-related scenarios faced by businesses.
Overall, integrating RCP values and SSP scenarios into the TCFD framework can improve companies' understanding of climate risks and opportunities, contributing to more comprehensive and transparent reporting of climate-related information.
What are TCFD Climate-related Financial Disclosures? What are the key steps for TCFD disclosure?
何謂TCFD 氣候相關財務揭露 TCFD的揭露關鍵步驟有哪些 (1).mp4The TCFD (Task Force on Climate-Related Financial Disclosure) is a climate-related financial disclosure group established by the International Financial Stability Board (FSB) in 2015. The TCFD's goal is to provide guidance to businesses, investors, and insurers to drive informed investment, credit or borrowing, and insurance underwriting decisions. Its purpose is to assist companies in effectively addressing the opportunities and risks posed by climate change and to facilitate a smooth transition to a more sustainable and low-carbon economy. The TCFD officially unveiled the relevant reporting framework in 2017, which contains four core elements.
The first is corporate governance, where companies should describe the board's oversight of climate-related risks and opportunities, as well as management's role in assessing and managing climate-related risks and opportunities. The second is strategy, where companies should describe short, medium, and long-term climate-related risks and opportunities, as well as the impact of these risks and opportunities on the business, strategy, and financial planning of the business. In addition, companies should describe the degree of flexibility of their strategy and consider relevant situations in different climate scenarios.
The third element is risk management, where companies should describe processes for identifying, assessing, and managing climate-related risks and integrate these processes with their overall risk management system. Finally, there are indicators and targets, which companies should disclose to assess and manage climate-related risks and opportunities, including Scope 1, Scope 2, and possible Scope 3 disclosures for greenhouse gas emissions and related risks. Companies should also describe the targets and corresponding performance they use in managing climate-related risks and opportunities.
In the TCFD reporting framework, Scenario Analysis is regarded as one of the most important tools in corporate strategic planning. Scenario analysis can help businesses consider broader assumptions, uncertainties, and potential future states when assessing the financial impact of climate change. It is not a prediction or sensitivity analysis, but rather helps businesses better understand and develop flexible and robust strategies to address the challenges posed by climate change. Climate-related risks can be categorized into transition risks and physical risks. Transition risks include policy, legal, technical, market, and reputational risks to help companies achieve low-carbon transition. Physical risks include acute risks and chronic risks. Acute physical risks are driven by events, such as increased severity of extreme weather events; Chronic physical risks are long-term changes in climate change, such as rising temperatures, rising sea levels, changes in precipitation patterns, and biodiversity loss.
These risks will have an impact on the financial health of companies, as well as opportunities such as resource efficiency, clean energy, low-emission products and services, diversified markets, and increased supply chain resilience. More and more countries and regions are now incorporating TCFD disclosure requirements into their ESG reporting requirements, such as the United Kingdom, Japan, and New Zealand. HKEX is also working to review its ESG reporting framework to align with the TCFD's recommendations. Many listed companies in various countries have begun to prepare to incorporate ESG reporting into the TCFD framework. Therefore, companies, especially listed companies, should understand the TCFD disclosure requirements and start preparing to integrate ESG reporting with the TCFD framework. This will help companies stay competitive in the face of uncertainty caused by climate change, gain market share, maintain a good reputation, attract investors, and obtain better resource allocation opportunities. Companies can set up climate leadership committees to ensure an effective understanding of the risks affecting the business and to develop and implement mitigation and adaptation measures. Additionally, businesses should work closely with stakeholders to drive climate-related actions and solutions.
As companies begin to prepare for TCFD disclosures, here are some steps and guidelines for reference:
1.Determine the scope and objectives of disclosure:
Companies should clearly determine which departments, businesses, and risks will be included in the TCFD disclosure scope. At the same time, set clear goals and timelines to implement relevant measures gradually.
2.Conduct Scenario Analysis:
Scenario analysis is one of the important elements in the TCFD framework. Businesses should use different scenarios and models to assess the impact of climate change on their business and finances. This will help companies understand the potential outcomes under different risk and opportunity scenarios and formulate corresponding strategies and measures.
3.Manage risks and opportunities:
Enterprises should establish effective risk management mechanisms, including identifying, assessing, and managing climate-related risks and opportunities. This includes monitoring and tracking aspects such as greenhouse gas emissions, energy use, water management, and supply chain sustainability. At the same time, enterprises should formulate response strategies for different scenarios and risks, ensuring that corresponding measures are effectively implemented.
4. Establish monitoring and reporting mechanisms:
Enterprises should establish monitoring and reporting mechanisms to track the implementation and effectiveness of their TCFD disclosures. This includes establishing appropriate metrics and goals, regularly assessing progress, and providing transparent and accurate reporting to internal and external stakeholders.
5.Build internal capabilities and awareness:
Companies should establish relevant internal capabilities, including training employees, hiring professionals, and setting up dedicated climate change teams. At the same time, strengthen awareness of climate change and TCFD within the organization and increase employee participation and contribution. Develop long-term strategies and action plans: Businesses should develop long-term climate-related strategies and action plans to address evolving climate risks and opportunities. This includes setting goals and timelines for low-carbon transition, strengthening innovation and technology investment, and promoting sustainable products and services.
It is worth noting that the TCFD's disclosure requirements are not just a regulatory requirement but an important tool that can help companies improve their competitiveness, gain market advantages, and protect their reputation. With proper TCFD disclosure, companies can better address the challenges posed by climate change while leveraging the opportunities for sustainable development and long-term value creation. Therefore, it is recommended that companies keep abreast of and comply with TCFD disclosure requirements and incorporate them into their ESG reporting and strategic plans to achieve sustainable development goals.
As the importance of TCFD becomes increasingly prominent, companies should start considering the following key steps to prepare for TCFD disclosures:
1.Define Objectives: Businesses should clearly define their goals and expectations in TCFD disclosures. This includes determining the scope, timeline, and relevant metrics for disclosure, as well as how it relates to the overall strategy and goals of the business.
2.Conduct internal assessments: Businesses should conduct internal assessments to assess their existing disclosure capabilities and practices and identify gaps in TCFD requirements. This can include evaluating existing reporting processes, data collection, and monitoring mechanisms, and identifying areas and needs for improvement.
3..Integrate relevant information: Companies should start integrating relevant climate-related information to meet TCFD disclosure requirements. This includes collecting data and information on greenhouse gas emissions, energy use, supply chain sustainability, environmental impact, and more. At the same time, companies should start establishing internal systems and processes to ensure data accuracy, reliability, and traceability.
4.Strengthen disclosure capabilities: Companies can improve TCFD disclosure capabilities by strengthening internal capabilities and training. This can include training internal teams to understand the TCFD framework and requirements, as well as familiarize themselves with relevant reporting guidelines and guidelines. At the same time, businesses can consider working with professional institutions and consultants to obtain professional support and advice.
5.Establishing Stakeholder Dialogue: TCFD's disclosure requirements emphasize effective dialogue and communication with stakeholders. Companies should start proactively engaging in dialogue with stakeholders, including investors, customers, suppliers, and communities, to understand their expectations, needs, and concerns, and incorporate them into TCFD disclosure considerations.
6. Establish monitoring and evaluation mechanisms: Enterprises should establish monitoring and evaluation mechanisms to ensure effective implementation and continuous improvement of TCFD disclosures. This includes establishing internal audit and oversight mechanisms, regularly evaluating the accuracy, consistency, and reliability of disclosures, and making adjustments and improvements based on feedback and stakeholder expectations.
7. Further collaboration and learning: Businesses should actively participate in relevant industry initiatives and collaborative organizations to share best practices, experiences, and knowledge. This can include participating in industry professional associations, participating in TCFD-supported events and initiatives, and collaborating and communicating with businesses in the same industry.
In conclusion, TCFD disclosure is a significant challenge and opportunity for enterprises. Companies should actively prepare, understand, and comply with the requirements of the TCFD and incorporate them into their ESG reporting and strategic plans. Through effective TCFD disclosure, companies can improve their ability to respond to climate change, gain a competitive advantage in the market, and achieve sustainable development goals.
What is TNFD? What is the difference between the TNFD framework and the TCFD climate-related financial disclosures?
The Task Force on Nature-related Financial Disclosures (TNFD) is a global initiative that promotes the disclosure of financial information related to natural capital by companies and financial institutions. The goal of the TNFD is to help investors, financial institutions, and other relevant people easily assess and manage the risks and opportunities associated with natural capital. Similarly, the Task Force on Climate-related Financial Disclosures (TCFD) is a similar initiative aimed at promoting corporate and financial institutions to disclose climate-related financial information. However, there are some key differences between TNFD and TCFD, which are enumerated in detail:
1.Scope and Concerns:
TCFD focuses on climate change and risk management associated with it. It focuses on information on a company's greenhouse gas emissions, climate risk management, energy use, and transition strategies.
TNFD focuses more broadly on environmental and biodiversity issues related to natural capital. It focuses on information on land use, water resource management, forest protection, species protection, etc. for businesses.
2.Disclosure Requirements:
The TCFD provides four core elements as the basis for disclosure, including climate governance, strategy, risk management, and metrics and goals. Businesses need to disclose both financial and non-financial information related to these elements.
TNFD provides six core elements, including natural capital dependency assessment, natural capital impact assessment, natural capital management, objective and performance evaluation, natural capital-related risk and opportunity identification, disclosure, and analysis. Businesses need to disclose information about these elements.
3.Guiding principles:
TCFD's guiding principles include guidance on disclosure objectives, target audience, time frame, importance of disclosure, general disclosure principles, and information accuracy and consistency.
TNFD's guiding principles include guidance on target audience, integration, information availability, information relevance, information accuracy, and comparability.
4.Target Audience:
TCFD's target audience is primarily financial institutions and investors, aiming to help them assess climate risks and opportunities in their portfolios.
TNFD is targeted to a wider range of stakeholders, including financial institutions and investors, businesses, governments and regulators, and other stakeholders related to natural capital. It aims to provide comprehensive information related to natural capital so that stakeholders can better understand and assess the risks and opportunities associated with natural capital.
5.Assessment Methodology:
The TCFD provides a framework to help companies assess climate-related risks and opportunities. This includes assessing the company's climate risk exposure, climate risk management strategies, and climate-related opportunities.
TNFD is still under development and no specific evaluation method has been provided. However, it encourages companies to take a quantitative approach to assess their dependence and impact on natural capital and provide relevant data and analysis.
6.Timeline and Maturity:
TCFD was established in 2015 and published its reports and guidelines, which have been widely recognized and adopted worldwide.
TNFD was launched in 2019 by UNEP FI (United Nations Environment Programme Financial Initiative) and is currently in the development stage, with its final report and guidelines expected to be released in late 2023 or early 2024.
7.Complementary Value:
The goals of TCFD and TNFD are complementary, jointly driving corporate and financial institutions to disclose financial information related to climate change and natural capital. They provide a consistent framework and guiding principles to help achieve sustainable finance goals.
The introduction of TNFD emphasizes the importance of natural capital and prompts businesses and investors to pay more attention to environmental and biodiversity issues, thereby achieving more comprehensive sustainable development goals.
TNFD is a global initiative that promotes corporate and financial institutions to disclose financial information related to natural capital, with a broader focus than the TCFD, covering multiple aspects of natural capital. The TNFD provides an independent set of guiding principles and disclosure requirements to help businesses and investors better assess and manage risks and opportunities related to natural capital. The introduction of TNFD promotes sustainable finance practices and promotes companies to take more financially transparent actions on environmental and biodiversity conservation.
8.Data and metrics:
The TCFD provides a standardized set of metrics and data requirements for assessing climate-related risks and opportunities for businesses. These indicators include greenhouse gas emissions, energy consumption, low-carbon transition strategies, etc.
TNFD will provide data and indicator requirements related to natural capital in its guidance to assess a business's dependence on and impact on natural capital. These indicators may include data requirements for land use, water resource management, forest protection, species protection, and more.
9.Disclosure and Reporting:
The TCFD encourages companies to incorporate climate-related information into their primary financial reports and provide detailed explanations of climate risk management and strategies.
The goal of the TNFD is to encourage companies to disclose information related to natural capital in their financial reports and provide detailed explanations of their dependence and impact on natural capital.
10.Dynamics and Development:
As an early initiative, TCFD has been widely recognized and adopted globally, gradually evolving into an industry standard.
TNFD, as a relatively new initiative, is still in the development stage. However, it is supported by the United Nations and the financial industry, and it is expected to release its final report and guidance in the near future.
11.Interrelationship and Complementarity:
TCFD and TNFD are related and complementary to each other to some extent. Climate change and natural capital are interrelated issues, as climate change has a significant impact on natural capital and biodiversity.
By focusing on both climate change and natural capital issues, TCFD and TNFD can provide more comprehensive information to help companies and investors make more informed decisions on sustainable development and risk management.
In summary, the differences between TNFD and TCFD are mainly in terms of scope of attention, disclosure requirements, guiding principles, target audience, evaluation methodology, timeline and maturity, complementary value, data and indicators, disclosure and reporting, dynamics and development, and interrelationship and complementarity. The common goal of these two initiatives is to promote corporate and financial institutions to disclose information related to climate change and natural capital in their financial reports to help assess and manage related risks and opportunities, and to promote sustainable finance and environmentally friendly protection. Through the TNFD and TCFD, businesses and financial institutions can better understand and assess the risks and opportunities associated with climate change and natural capital. They provide a guiding framework and standardized disclosure requirements, enabling businesses to report their data and information related to climate and natural capital more comprehensively.
Notably, the introduction of TNFD underscores the importance of natural capital. Natural capital includes land, water resources, forests, species, etc., and plays a key role in the sustainable development of social economy. By focusing on the management and impact of natural capital, TNFD reminds businesses and investors to recognize the urgency of protecting ecosystems and biodiversity, as well as the need to consider natural capital comprehensively in business decisions. In addition, TNFD has a wider target audience, including financial institutions, investors, enterprises, governments, and regulators. Its guiding principles and disclosure requirements provide a consistent framework for all parties to better understand and assess the risks and opportunities associated with natural capital.
In summary, TNFD and TCFD are two important initiatives aimed at promoting corporate and financial institutions to disclose financial information related to natural capital and climate change. Despite their differences, they share a common commitment to promoting sustainable finance and environmental conservation practices. By providing guiding principles, standardized disclosure requirements, and evaluation frameworks, they provide businesses and investors with more comprehensive information to promote sustainability and effectively manage associated risks.
According to the relevant announcement of the "Climate-related Financial Disclosure Example (Banking Industry)", how should the TCFD climate-related financial disclosure report for the domestic banking industry be completed?
According to the relevant announcement of the "Climate-related Financial Disclosure Examples (Banking Industry)", how should the TCFD climate-related financial disclosure report for the domestic banking industry be completed ?
According to the relevant announcement of the "Climate-related Financial Disclosure Example (Banking Industry)", the following is a detailed explanation of how to complete the climate-related financial disclosure report of the TCFD (Climate-related Financial Disclosure Task Force) for the domestic banking industry with reference to the content of this example.
1. Introduction
In the introduction of the report, it is first necessary to explain the purpose, background and importance of the report. It highlights the impact of climate change on the risks and opportunities of financial institutions, and introduces the background and application of the TCFD framework. Outline the bank's commitments and responsibilities to drive the implementation of climate-related financial disclosures.
2. Organizational Overview
In this part, the general information of the bank is provided, including the organizational structure, business scope and strategic positioning. Detail the bank's sustainability goals and climate-related policy framework. Explain how banks are integrating climate risk into their business decisions and risk management systems.
3. Climate-related risk management
In accordance with the requirements of the TCFD framework, disclose banks' identification, assessment, management and monitoring measures for climate-related risks. Highlights include the following:
Climate Risk Identification: Describe in detail how banks can identify potential risks related to climate change and incorporate them into their risk management frameworks. Explain the methodologies, models and data sources used by banks, as well as the industry standards and guidelines referenced.
Climate Risk Assessment: Describes the bank's assessment methods and tools for climate-related risks, including qualitative and quantitative analysis. Describe the potential impact of the assessment results on business and financial health.
Climate Risk Management Strategies: Clarifies the bank's management strategies and measures for climate-related risks. This includes specific measures to mitigate risks, such as reducing carbon emissions and energy consumption, promoting the use of renewable energy, and investing in green and sustainable projects. C
limate Monitoring and Reporting: Explains how banks monitor and report on the progress and impact of climate-related risks. This includes methods and indicators for regularly assessing and monitoring risk exposure, as well as reporting on the effectiveness of risk management and response measures.
4. Opportunity management
In accordance with the requirements of the TCFD framework, disclose the bank's opportunity management under climate change. Highlights include the following:
Climate Change Opportunity Identification: Describe how banks identify climate-related opportunities, such as green finance, sustainable investments, and climate-related products and services. Explain the importance and strategic planning of banks on these opportunities.
Climate Change Opportunity Assessment: Explains the bank's methods and tools for evaluating climate-related opportunities, including market analysis, investment evaluation, and potential return calculation. Describe the potential impact of the assessment results on business and financial health.
Climate Change Opportunity Management Strategies: Clarifies the bank's management strategies and initiatives for climate-related opportunities. It includes specific measures such as developing green finance business, promoting sustainable investment, and supporting green technology innovation.
Monitoring and Reporting: Explain how banks monitor and report on the progress and impact of climate-related opportunities.
This includes methods and metrics for regularly assessing and monitoring opportunities, as well as how to report on the effectiveness of opportunity management.
5. Financial Indicators and Analysis
Disclose climate-related financial indicators and analysis in accordance with the requirements of the TCFD framework. Highlights include the following :
Assets and Liabilities: Describe the bank's asset mix and liability structure, focusing on climate-related assets and liabilities. Including the scale and growth trend of green financial products such as green loans and green bonds.
Revenue and Costs: Explain climate-related revenue streams and cost implications. For example, the income obtained from providing green financial products and services, as well as the cost savings caused by reducing carbon emissions and resource consumption.
Climate Risk and Opportunity Assessment: Analyze the potential impact of climate-related risks and opportunities on the bank's financial health. Use appropriate methods and tools to measure risk exposure and assess opportunity potential.
Investments and Capital Expenditures: Describes the bank's investments and capital expenditures in climate-related areas. This includes investment in green projects and capital expenditures for sustainable development, as well as the returns and benefits associated with it.
6. Disclosure Principles and Methods
Clarify the disclosure principles and methods followed by banks when making climate-related financial disclosures. Key points include the following aspects:
Consistency and Comparability: Explain how banks ensure consistency and comparability in financial disclosures so that all parties can compare and evaluate performance and trends between different banks.
Transparency and Accuracy: Emphasize the bank's emphasis on transparency and accuracy in financial disclosures, including processes and mechanisms for data collection, verification, and reporting.
Reporting Cycle and Frequency: Explain the frequency and frequency of financial disclosure reports, ensuring timely disclosure and continuous monitoring.
Internal Control and Audit: Describes the bank's internal control and audit mechanisms for financial disclosures to ensure the accuracy and completeness of information.
7. Future Developments and Goals
Looking ahead, describe the bank's development and goals in climate-related financial disclosures. This includes improving data collection and reporting systems, promoting the development and application of industry standards, and enhancing collaboration and dialogue with stakeholders.
8. Conclusion
In the conclusion section of the report, summarize the bank's achievements and challenges in climate-related financial disclosures. It emphasizes the importance of banks' awareness of climate change and response measures, and calls on other banks in the industry to take active action. In accordance with the requirements of the "Climate-related Financial Disclosure Model (Banking Industry)", detailed instructions on how to complete the TCFD climate-related financial disclosure report for the domestic banking industry based on the content of the example. Please note that the content and structure of the report may be adapted and personalized based on the specific bank's circumstances and requirements.
9. Appendices
In the appendix section of the report, relevant supplementary information and data support are provided. Includes a detailed description of the methodology and models used, an assessment of the data source and reliability, and other supplementary analysis and reporting.
10. References List all references and sources cited in the report. Ensure accuracy and consistency in citation formatting so that readers can further consult relevant information.
11. Review and assurance of the report (verification)
Describe the review and verification mechanism of the report, including the internal review of the external verification process (external third-party organization assurance report) after internal review and the results of the assurance report. Ensure the quality and credibility of the report.
Finally, by following the content of the "Climate-related Financial Disclosure Example (Banking Industry)", domestic banks can prepare a climate-related financial disclosure report that meets the requirements of the TCFD framework. The report should include the bank's identification, assessment and management measures for climate-related risks, as well as the understanding and utilization of climate-related opportunities. At the same time, the financial metrics and analysis section should provide quantitative analysis and assessment of climate-related impacts. The structure of the report should be clear, and the content should be accurate, transparent, and comparable. Banks should continuously improve and refine their financial disclosure mechanisms, actively communicate and cooperate with stakeholders, and promote the implementation and continuous improvement of climate-related financial disclosures. It is important to note that the specific situation and needs of each bank may vary, so appropriate adjustments and customizations should be made to ensure that the report is consistent with the bank's strategic goals and business model. At the same time, timely update and track the latest requirements and industry practices of the TCFD framework to maintain the timeliness and effectiveness of the report.
By following the "Climate-related Financial Disclosure Model (Banking)," the domestic banking industry can raise awareness of climate-related risks and opportunities, strengthen internal management and external communication, promote the development of sustainable finance, and make positive contributions to the realization of a low-carbon economy and sustainable development. The above is a detailed explanation of how to complete the TCFD climate-related financial disclosure report for the domestic banking industry with reference to the "Climate-related Financial Disclosure Example (Banking Industry)". I hope these guidance will help you prepare your report.
The following will further explain the steps and key points of writing the report.
Here are the steps to write: Understand the TCFD Climate Framework:
1.Thoroughly research and understand the requirements and guidelines of the TCFD framework. Ensure a clear understanding of the framework's underlying concepts, goals, and principles.
2.Collect Data and Information: Gather data and information related to banking and climate. This includes banks' financial statements, environmental impact data, portfolio information, and the scale and growth of green financial products.
3. Climate Analysis and Assessment: Conduct analysis and evaluation based on the data and information collected. Identify (identify) climate-related risks and opportunities faced by banks, quantify their impact and potential value, and assess their financial position.
4. Develop climate strategies and measures: Based on the analysis results, develop management strategies and specific measures for climate-related risks and opportunities. Ensure that strategies and initiatives align with the bank's overall strategy and sustainability goals.
5.Prepare Climate-related Financial Reports: Prepare reports based on the structure and requirements of the "Climate-related Financial Disclosure Examples (Banking)." Ensure that the content of the report is accurate, clear, and organized and presented in accordance with the requirements of the TCFD framework.
Key takeaways from writing climate-related financial reports include:
1.Disclose the bank's awareness and focus on climate change, including the commitment and engagement of senior management.
2.Identify (identify) risks and opportunities related to climate change, and quantitatively analyze and evaluate them.
3.Clarify the bank's management strategies and specific measures to address climate-related risks and capitalize on opportunities.
4.Disclose climate-related financial metrics and analysis, including assets and liabilities, revenue and costs, risk and opportunity assessments, etc.
5.Emphasize transparency and accuracy in financial disclosures, ensuring reliability and consistency in data.
6.Instructions on reporting periods and frequencies to ensure timely disclosure and ongoing monitoring.
7.Emphasize internal controls and audit mechanisms to ensure the quality and credibility of reports.
8.Look ahead to future developments and goals, including improving financial disclosure mechanisms and enhancing collaboration with stakeholders.
By following the above steps and key takeaways, domestic banks can prepare a TCFD climate-related financial disclosure report that complies with the "Model Climate-related Financial Disclosures (Banking)".
Here is the detailed content of the report:
1. Introduction
2. Bank Overview
3. Climate-related Risk Identification (Identification) and Assessment
4. Climate-related Opportunity Identification (Identification) and Assessment
5. Management Strategies and Measures
6. Financial Indicators and Analysis
7. Reporting Cycle and Frequency
8. Internal Control and Audit
9. Appendix
10. References
It is important to note that the specific situation and needs of each bank may vary, so
appropriate adjustments and customizations should be made to ensure that the report
aligns with the bank's strategic goals and business model. At the same time, timely update
and track the latest requirements and industry practices of the TCFD framework to
maintain the timeliness and effectiveness of the report. By following the "Climate-related
Financial Disclosure Model (Banking)," the domestic banking industry can raise awareness
of climate-related risks and opportunities, strengthen internal management and external
communication, promote the development of sustainable finance, and make positive
contributions to the realization of a low-carbon economy and sustainable development.
What is Climate-related Financial Disclosures (TCFD)? What is the difference between ESG sustainability reports, organizational greenhouse gas inventories, and CDP carbon disclosure plans?
什麼是氣候相關財務揭露(TCFD)？與ESG永續報告書、組織型溫室氣體盤查、CDP碳揭露計畫有什麼不.mp4The TCFD Task Force on Climate-related Financial Disclosures (TCFD) is a global framework that guides companies on how to disclose climate-related risks and opportunities. It was established by the Financial Stability Board (FSB) in 2015 to guide businesses in integrating the impact of climate change into their financial reporting and strategic decisions. Through a series of medium- and long-term processes aimed at the enterprise's own medium- and long-term processes, assuming extreme weather events caused by climate change, such as natural disasters, storms, droughts, floods, tsunamis, floods, etc., due to the greenhouse effect, climate extremes caused by corporate business activities, such as drought caused by upstream raw material supply shortages, weather events caused by asset and equipment losses, flood and drought food crises, manpower supply imbalances, etc., resulting in financial loss risks and crisis scenario simulations and response strategies that affect business operations.
It also includes assumptions, simulations, predictions, and preventive measures in response to the corresponding risk scenarios of TCFD transition or non-transformation, as well as new business opportunities, new strategies, new products, new technologies, and new market opportunities in response to the upcoming climate change environment. The core objective of the TCFD is to enable companies to assess and disclose the impact of climate-related risks and opportunities on their business, strategy, and financial performance.
It provides a framework to assist companies in analyzing the impact of climate change on their operations, supply chains, and markets, and based on the results of these analysis, effectively disclose information to investors, shareholders, and other stakeholders. Compared with other related initiatives, the TCFD differs in the following ways:
I.ESG Sustainability Report (Environmental, Social, and Governance, ESG): ESG reports focus on a company's environmental, social, and governance performance. It provides a comprehensive assessment of corporate social responsibility, ethical standards, supply chain management, internal governance at the company's top management, etc., mainly including the disclosure of the company's long-term strategic approach on sustainable development related to environmental, social and corporate governance for the company itself, stakeholders, investors, and the public to pay attention to and evaluate the company's own ESG performance. Its corresponding criteria include, but are not limited to:
1. GRI (Global Reporting Initiative);
2. SASB (Sustainability Accounting Standards Board) sustainability accounting standards;
3. The framework and guiding principles of the International Integrated Reporting Council (IIRC);
4. CDP (Carbon Disclosure Project) carbon disclosure carbon emissions and climate risk management strategies;
5. ISO 26000 Social Responsibility Guidelines;
6. SDGs (Sustainable Development Goals) United Nations Global Sustainable Development Goals for Sustainable Development.
The TCFD focuses more on climate change-related risks and opportunities.
II. Organizational Greenhouse Gas (GHG):
Most of the ISO 14064-1 guidelines are used to calculate the total carbon dioxide emissions of a company or organization in the base year. It requires companies to report their direct and indirect greenhouse gas emissions data, quantify the total carbon emissions and disclose the amount of removals through the identification of carbon emission sources and the selection of emission factors. The TCFD focuses on the overall risks and opportunities of climate change and provides a framework to help companies conduct more comprehensive analysis and disclosure.
III.CDP Carbon Disclosure Program:
CDP (Carbon Disclosure Project, CDP) is a global organization that encourages companies to disclose information about their greenhouse gas emissions and climate change-related actions. While both CDP and TCFD focus on climate change, CDP focuses more on disclosing corporate carbon emissions and corresponding climate actions. CDP provides a global platform to promote transparency and disclosure of companies' greenhouse gas emissions. Businesses are encouraged to submit reports to CDP on their greenhouse gas emissions, reduction targets, energy use, and related climate actions. CDP focuses on the disclosure of carbon emissions, especially the greenhouse gas emissions data of companies. It provides a standardized assessment framework that allows businesses to report their carbon emissions data, including direct and indirect emissions. CDP also encourages companies to set and publish emission reduction targets and report on relevant climate actions they implement to address climate change challenges. Compared to TCFD, CDP has a narrower focus, focusing solely on greenhouse gas emissions and carbon disclosure. It provides a platform to evaluate and compare corporate carbon emissions data, as well as understand how companies are performing in terms of emission reduction targets and related climate actions. However, the TCFD is more comprehensive, focusing on the overall climate risks and opportunities faced by companies and providing a broader framework to guide companies in assessing and disclosing climate-related financial and strategic information.
In conclusion, TCFD, CDP, and ESG reporting are all designed to promote transparent and comprehensive disclosure by companies in the face of climate change. However, they differ in their focus and approach. The TCFD emphasizes the assessment and disclosure of climate-related risks and opportunities, the CDP focuses on carbon disclosure and emission reduction targets, and the ESG report focuses on the overall performance of companies in environmental, social, and governance aspects. Together, these initiatives drive active participation in sustainability and climate action to address the challenges posed by global climate change.
TCFD, CDP, and ESG reporting are all designed to promote transparent and comprehensive disclosure by companies in the face of climate change. However, they differ in their focus and approach. The TCFD emphasizes the assessment and disclosure of climate-related risks and opportunities, the CDP focuses on carbon disclosure and emission reduction targets, and the ESG report focuses on the overall performance of companies in environmental, social, and governance aspects. Together, these initiatives drive active participation in sustainability and climate action to address the challenges posed by global climate change. Climate-related Financial Disclosures (TCFD) is a global framework designed to guide companies on how to disclose risks and opportunities related to climate change. Its core goal is to help businesses assess and disclose the impact of climate change on their business, strategy, and financial performance. Compared to ESG sustainability reports, TCFD focuses more on issues related to climate change. ESG reports focus on the overall performance of companies in environmental, social, and governance aspects, including social responsibility, ethical standards, and supply chain management. However, the TCFD focuses on assessing and disclosing the risks and opportunities of climate change on corporate business operations. In addition, organizational greenhouse gas inventories require companies to report data on their direct and indirect greenhouse gas emissions. It mainly focuses on the greenhouse gas emissions of enterprises. The TCFD, on the other hand, is more comprehensive, providing a framework to help companies assess the overall climate-related risks and opportunities, not just greenhouse gas emissions. In addition, the CDP Carbon Disclosure Program is a global organization that encourages companies to disclose their greenhouse gas emissions and corresponding climate actions. Although both CDP and TCFD focus on climate change, their focus is slightly different. CDP focuses more on disclosing corporate carbon emissions data, while TCFD focuses on overall risks and opportunities, providing a more comprehensive framework to guide companies in incorporating climate factors into their financial reporting and strategic decisions. In conclusion, the TCFD is unique in that it provides a comprehensive framework to guide businesses in assessing and disclosing risks and opportunities related to climate change, incorporating these factors into financial reporting and strategic decision-making. Its goal is to provide investors, shareholders, and other stakeholders with the effective information they need to better understand the risks and opportunities faced by businesses in the face of climate change. In the TCFD framework, companies are encouraged to make disclosures in the following four main areas:
1.Corporate climate-related risk management: Companies should assess and disclose the impact of climate-related risks on their business operations and financial performance. This includes analyzing the potential impact of climate change on supply chains, market demand, asset values, and insurance costs.
2. Climate-related opportunities: Businesses should assess and disclose potential business opportunities presented by climate change. This may involve the development of new products and services, the application of innovative technologies related to climate change, and shifts in market trends.
3.Indicator Selection: Companies should evaluate and disclose key metrics related to climate change to help investors and other stakeholders assess the climate risks and opportunities of their operations. This may include greenhouse gas emissions data, energy use, carbon pricing, and progress towards sustainability goals.
4.Disclosure Timeline: Businesses should assess and disclose climate-related information on timelines and processes. This can include projected disclosure timelines, methods to ensure information accuracy and comparability, and internal processes and governance mechanisms.
Compared to other related initiatives, the TCFD provides a more specific and comprehensive framework to help companies integrate climate change into their financial reporting and strategic decisions. It emphasizes risk management and opportunity assessment, emphasizing accuracy, comparability, and transparency in disclosures. This helps raise investor awareness of the climate-related risks faced by businesses and promotes the advancement of sustainable development and climate action.
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