Financial markets are increasingly prioritising the assessment of climate risks impact on portfolios, and the recent publication of the FSB Task Force on Climate-related Financial Disclosures (TCFD) recommendations provide guidance to companies on the disclosures markets need to do so effectively.
The TCFD recommendations apply to all G20 countries with listed equity or debt, including asset owners (such as pension plans) and asset managers. The transition to a low-carbon economy creates physical, transition and liability risks – but it also provides opportunities for financial outperformance that can be captured..
DNV GL can help asset owners, asset managers and companies to:
- Identify the material physical and non-physical climate risks and opportunities impacting portfolio or company performance in the short, medium and long term
- Evaluate the potential financial impact of climate risks
- Develop and implement plans to manage climate risks & opportunities, including governance frameworks
- Integrate climate risk into risk management processes and tools
- Assess your ability to respond to the TCFD recommendations & investor expectations
- Benchmark against peers/best practice
- Develop the right metrics to measure climate risk impacts
- Support the disclosure of climate risks to stakeholders via reporting and assurance
- Increase competence in climate risk via training for key functions (e.g. Finance, Investor Relations, Risk, Audit etc)
- Validate and unlock access to green financing mechanisms such as green bonds