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 pilot :
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.
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:
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.