Pilot Projects on Implementing the TCFD Recommendations for Banks

Phase II (New for September 2020)

UNEP FI engaged 39 global financial institutions on six continents in its TCFD Phase II banking pilot. The program empowered participants to identify, assess, and manage their climate risks and opportunities. Participating banks were led through a series of modules designed to expand their physical risk and opportunities toolkits.

The Phase II project provided a comprehensive way for organisations to consider their physical risks and opportunities and move from assessment to action

Access the outcomes of the phase II

Charting a New Climate: State-of-the-art tools and data for banks to assess credit risks and opportunities from physical climate change impacts – Published in September 2020, the report comes complete with case studies from participating banks, and investigates leading practices for several critical topics related to physical risks and opportunities

 

The Phase II Working Group included the following banks: ABN-AMRO, ABSA, Access Bank, Bank of Ireland, Barclays, BMO, Bradesco, Caixa Bank, CIBC, CIMB, Citibanamex, Credit Suisse, Danske Bank, Deutsche Bank, DNB, EBRD, FirstRand, ING, Intesa Sanpaolo, Itau, KBC, Lloyds, Mizuho, MUFG, NAB, Nat West, Nedbank, NIB, Nomura, Nordea, Rabobank, Santander, Scotia Bank, Shinhan, Standard Bank, Standard Chartered, TD Bank, TSKB and UBS to develop a blueprint for assessing the climate-related physical risks and opportunities for banks’ corporate credit portfolios.


Phase I

UNEP FI, together with 16 of the world’s leading banks, set out on a year-long project to pioneer and further develop transition and physical assessment models and metrics to enable scenario-based, forward-looking assessment and disclosure of climate-related risks and opportunities.

The contributions of the pilot have better equipped participating banks and the banking industry at large to implement the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD).

Access the outcomes of the phase I :

Extending our Horizons: Assessing Credit Risk and Opportunity in a Changing Climate– Published in April 2018, the report details the jointly developed methodology for scenario-based assessment of the transition-related risk and opportunities.

Navigating a New Climate: Assessing Credit Risk and Opportunity in a Changing Climate – The second report, released in July 2018, covers physical risk assessment methodologies.

The UNEP FI TCFD pilot group included 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.

Member Reports :

TCFD Reporting by UNEP FI Pilot Banks

All 16 banks participating in the UNEP FI TCFD Pilot committed to publishing an initial TCFD disclosure by mid-2019.

Please see first examples here:

ANZ TCFD Report            Citi TCFD Report

Webinars :

Transition (Policy) Risks Webinar

On 15th 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.

Physical Risks Webinar

On 14th 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.

TCFD Pilot for Banks 2.0 

A second phase of TCFD for banks has launched over Summer 2019. For more information please contact David Carlin.