The Financial Stability Board’s Task Force on Climate-Related Financial Disclosure (“TCFD”), an industry-led group formed at the request of the G20, and the Climate Disclosure Standards Board (“CDSB”) announced today at TCFD’s first U.S. Scenario Analysis Conference the launch of the TCFD Knowledge Hub (“Hub”). The Hub is an online platform with peer-to-peer resources to assist organizations in implementing TCFD’s recommendations to public companies on the use of scenario analysis to disclose climate-related risks and opportunities. Our prior posts describing TCFD’s recommendations can be found here and here. The Hub can be accessed at tcfdhub.org. Over 250 organizations have expressed their support for TCFD as of April 2018.
What Is Available on the Hub?
The Hub currently contains three hundred different documents or other resources organized by the four thematically related areas for disclosure set out in TCFD’s recommendations: (i) Governance, (ii) Strategy (or Scenario Analysis), (iii) Risk Management and (iv) Metrics and Targets. The Hub tags resources as relevant to specific industry groups, such as oil and gas, banks, financial, agriculture, food and forest products and asset owners. Currently available resources include legislation/regulation, frameworks/standards, guidance/tools, research/insights and webinars/videos. In the near future, the TCFD plans to include on the Hub company case studies to illustrate preparers’ implementation of the TCFD recommendations.
Who’s Resources are on the Hub?
As of the time of launch, 32 contributors have submitted resources to the Hub. Contributors include non-profit organizations, academics, intergovernmental institutions, industry associations, environmental consultants and corporations including the California Energy Commission, Carbon Tracker, Ceres, CDP, CDSB, KPMG, The MIT Center for Energy and Environmental Policy Research, Mercer, PRI, 2° Investing Initiative, WWF, ShareAction, UNEP FI, the U.S. Department of the Interior and the U.S. Securities and Exchange Commission.
Impact on Scenario Analysis?
The Hub contains tools to assist organizations that have already started coming into compliance with the TCFD recommendations as well as those who have not yet begun. Simon Messenger, Managing Director of CDSB, commented: “The Hub is designed to help both organizations that are just starting to work on the TCFD recommendations, as well as those who are already on the journey and need insightful resources to deal with specific challenges.” While the Hub does not contain any new or additional guidance from the TCFD on Scenario Analysis, it does contain peer and expert commentary on the TCFD recommendations that can aid organizations with their implementation.
The firm gratefully acknowledges the assistance of law clerk Hilary Smith in preparing this blog post.