EBRD, GCECA publish recommendations on physical climate impacts in financial reporting
The European Bank for Reconstruction and Development and the Global Centre of Excellence on Climate Adaptation (GCECA) have published a new report on physical climate risk, providing recommendations for firms to integrate climate impacts into investment decisions.
"Advancing TCFD guidance on physical climate risks and opportunities" highlights how firms should perform forward-looking risk assessments and disclose material exposure to climate hazards, such as flood risk, water stress, extreme heat, storms, and sea level rise. It also recommends that companies use scenario analysis and incorporate long-term climate uncertainties into business planning and strategic decisions.
The recommendations are based on analysis conducted by working groups, which included representatives from AFD, Allianz, APG, Aon, Bank of England, Barclays, BlackRock, Bloomberg, BNP Paribas, Citi, Danone, DNB, DWS, The Lightsmith Group, Lloyds, Maersk, Meridiam Infrastructure, Moody's, the OECD, S&P Global, Shell, Siemens, Standard Chartered, USS and Zurich Asset Management.
