UNEP FI together with twenty of the world’s leading asset managers and owners conducted its first TCFD pilot project for investors during 2018 and 2019. Participants developed scenarios, models, metrics and, ultimately, a risk assessment tool to enable investors to assess climate risk across their portfolio. Technical partners included Carbon Delta (now MSCI) and Vivid Economics. The work conducted during the pilot was detailed in a final report – published in 2019 – for the benefit of the investment sector.
Changing Course: A comprehensive investor guide to scenario-based methods for climate risk assessment in response to the recommendations of the TCFD including case studies from participating investors.
Changing Course: Real Estate: A companion report to Changing Course on the methodology and results from investors with direct real estate equity exposure.
In February 2021, UNEP FI published additional insight for financial institutions to help them understand third party climate risk assessment providers, as well as regulatory developments.
The Climate Risk Landscape: Mapping Climate-related Financial Risk Assessment Methodologies provides a summary of the key developments across third party climate risk assessment providers since May 2019, including new and updated scenarios, methodological tools, key guidelines, as well as an overview of the changing regulatory landscape and potential developments into 2021.
The second phase of UNEP FI’s TCFD pilot for investors commenced in 2021. It expands on the first phase of work by introducing new climate risk assessment methodologies and exploring sector-specific risks and opportunities. If you are interested in participating in Phase II or would like to learn more, please contact David Carlin.