The first guidance from the pilot project focusing on transition risk, Extending Our Horizons: Accessing credit risk and opportunity in a changing climate, is now available to download here.
The second report, which helps banks assess risks and opportunities arising from physical risk, Navigating a New Climate, is available here.
UNEP FI, together with 16 of the world’s leading banks, is working on implementing the recommendations set out by the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD). This pilot project is a pioneering initiative to develop scenarios, models and metrics to enable scenario-based, forward-looking assessment and disclosure of climate-related risks and opportunities. The UNEP FI TCFD pilot group includes the following UNEP FI member banks: ANZ, Barclays, BBVA, BNP Paribas, Bradesco, Citi, DNB, Itaú, National Australia Bank, Rabobank, Royal Bank of Canada, Santander, Société Générale, Standard Chartered, TD Bank Group and UBS.
Upon the conclusion of this pilot project, its results will be made publicly available in an open source format. The published scenarios, models and metrics will contribute to a harmonized industry-wide approach to the TCFD’s recommendations as banks worldwide will be able to adopt and build upon them. The first TCFD Pilot Project Report was published in April 2018 detailing the jointly developed methodology for scenario-based assessment of the transition-related risk and opportunities. The second report, covering physical risk assessment methodologies, was released in July 2018.
Pilot Banks’ TCFD Reporting to Date
All 16 banks participating in the UNEP FI TCFD Pilot have committed to publishing an initial TCFD disclosure by mid-2019.
Please see first examples here:
- ANZ: Climate-related Financial Disclosures (2018)
- UBS: Climate Change Strategy (2018) (Here to find the updates on website)
Global Public Webinar on the First Report
On 15th of May, UNEP FI set up the webinar on the transition-related methodology, the scenarios, risk and opportunities considered throughout the 10-month pilot project and the first report. Please click here to hear the recorded webinar.
Hear from Participants in UNEP FI’s Pilot Implementing TCFD Recommendations Webinar
On 14th of August, UNEP FI conducted a webinar on the physical-related risk and opportunities. The webinar discussed the results of the collaboration between UNEP FI and sixteen of the world’s leading banks. The banks set out to develop and test a widely applicable scenario-based approach for estimating the impact of climate change on their corporate lending portfolios as recommended by the Recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD). Read more about the webinar here and access the recording of the webinar here.