References for Financial Institutions

Risk Awareness and Risk Management

Author Description
TCFD Final Report: Recommendations of the Task Force on Climate-related Financial Disclosures (June 2017)  Task Force on Climate-related Financial Disclosures Provides context, background, and the general framework for climate-related financial disclosures and is intended for broad audiences.
TCFD Implementation Guide (2019) Climate Disclosure Standards Board (CDSB), Sustainability Accounting Standards Board (SASB) Draws well-established reporting standards, tools and frameworks, this guide offers companies the “how-to” to drive implementation of the 11 recommended TCFD disclosures,
Uncharted Waters: How can companies use financial accounting standards to deliver on the Task Force on Climate related Financial Disclosures’ recommendations? (March 2018) Climate Disclosure Standards Board (CDSB) Provides an overview of the main challenge that the TCFD provides: how to integrate climate-related financial disclosures with existing reporting models and financial accounting standards.
Climate Change Questionnaire and Guidance CDP Global Bycompleting CDP's questionnaires on climate change, forests and water security, companies will identify ways to help them manage their own environmental risks and opportunities as well as providing vital information back to their customers and investors, and to the market through research, insights and financial products and services.
CDP Technical Note on the TCFD Disclosing in line with the TCFD’s Recommendations in 2019 CDP Global This technical note provides an overview of the TCFD recommendations, how CDP has committed to aligning its questionnaires with the TCFD’s recommendations, and where organizations can find TCFD-related questions in CDP questionnaires.
Changing Course: A comprehensive investor guide to scenario-based methods for climate risk assessment, in response to the TCFD (May 2019) UNEP-FI This report details the results of the UN Environment Programme Finance Initiative (UNEP FI) Investor Pilot on TCFD Adoption, a collaborative effort to explore, enhance and apply a methodology for assessing the impact of physical and transition risks and opportunities on the portfolios of institutional investors.
Transition risk framework Managing the impacts of the low carbon transition on infrastructure investments (February 2019) ClimateWise Insurance Advisory Council  Provides an open-source, step-by-step methodology on how to manage the risks and capture emerging opportunities from the low carbon transition.
Major risk or rosy opportunity Are companies ready for climate change? CDP Global The report confirms that that the potential negative impacts of climate change outweigh the costs to mitigate them, and that there are significant opportunities to be realized as part of the transition.

State of the Market and Opportunities

Author Description
The State of Blended Finance (2019) Convergence The report looks at more than 3,700 financial commitments to over 500 blended finance transactions to analyze the blended finance market, including intended impact, blending approaches, focus sectors, and target regions.
Connecting the dots: Energy transition scenarios and credit quality S&P Global: Trucost ESG Analysis Contains findings regarding the implications of climate transition scenarios for credit quality of nine companies in power, cement and steel sectors. The results suggest that the credit implications of opportunities and a strategic alignment with energy transition drivers can outweigh the effects of risks.
Accounting for Carbon: Sovereign Bonds S&P Dow Jow Indices Outlines a number of approaches to sovereign bond evaluation and metrics available. Scope and breadth of emissions are key considerations, as is the denominator chosen to normalize emissions to facilitate comparison between entities of different size
Global Climate Risk Disclosure Barometer (2018) EY  
BPI Green Bond Fact Sheet (September 2019) CBI  
RCBC Green Bond Fact Sheet (February 2019) CBI  
AC Energy Green Bond Fact Sheet (January 2019) CBI  
BDO Green Bond Fact Sheet (January 2018) CBI  

Tools, Guides, and Best Practices

Author Description
Climate Disclosure Standards Board (CDSB), Sustainability Accounting Standards Board (SASB) Offers specific examples of different aspects of effective TCFD reporting across the four core TCFD elements of governance, strategy, risk management, and metrics and targets.
How Can Banks Apply a Quantitative Lens on Climate Risk Exposure? S&P Global Provides practical guidance to help banks manage and report key climate-related metrics, no matter what level of ambition they may have.
Transition Risk Toolbox (April 2017) Energy Transition Risks & Opportunities (ET Risk) research consortium  
Implementing the Recommendations of the TCFD (June 2017)  TCFD Provides the next level of detail to help companies implement the recommendations and is a “living” document that will likely be refined as companies gain more experience preparing climate-related financial disclosures. Includes information on applying the recommendations, guidance for all sectors, and supplemental guidance for select financial sectors and non-financial groups.
Technical Supplement: The Use of Scenario Analysis in Disclosure of Climate-Related Risks and Opportunities (June 2017)  TCFD Provides a further level of detail that can be helpful for companies in considering scenario analysis. It describes key publicly available scenarios and resources on scenario analysis.