Climate change risk and opportunities assessment and scenario analysis for TCFD disclosure
- Consulting
- Chemicals
- #Net Zero
08/15/2024
With the purpose of TCFD* disclosure by a major chemical manufacturer, Lively assisted risk and opportunity assessment and scenario analysis. We identified current and future climate change risks - transition and physical, assessed their qualitative impacts on management, gauged stakeholders' interests, conducted a business impact assessment using various scenarios including below 2°C, and developed countermeasures based on these both risks and opportunities.
* The TCFD (Task Force on Climate-related Financial Disclosures) provides an international framework guiding companies in disclosing climate-related financial information. Its goal is to enhance visibility into the impact of climate change on corporate finances, thereby enabling investors and stakeholders to make more informed decisions. TCFD recommends disclosures across four key areas: governance, strategy, risk management, and metrics and targets. By following these recommendations, companies that endorse TCFD have the opportunity to increase their corporate value through transparent reporting.
目次
Need for risk and opportunity assessment and analysis for TCFD disclosure
In this project, Lively helped a major chemical manufacturer with risk and opportunity assessment and scenario analysis for its TCFD disclosure: we identified current and future climate change risks – transition and physical, assessed their qualitative impacts on management, gauged stakeholders’ interests, conducted a business impact assessment using various scenarios including below 2°C, and developed countermeasures based on these both risks and opportunities.
Risk and opportunity assessment and development of countermeasures based on the TCFD framework
Based on the TCFD framework, Lively identified current risks and opportunities for the client’s operations and assessed their significance. Further to this, multiple scenarios including “below 2°C, common called as a scenario analysis” were defined and business impacts of each scenario was evaluated. And then we gauged stakeholders’ interest, conducted a quantitative assessment of the financial impact related to climate change, and developed countermeasures based on the identified risks and opportunities.
Disclosure of non-financial information through detailed analysis of climate change risks and opportunities
Out client gained a deeper understanding of climate change risks and opportunities, enhancing its TCFD disclosures as a result of this project: assessment of increase in cost burden due to rise in carbon pricing, investment in low-carbon facilities, development of appropriate measures to address these risks. Through quantitatively assessment of the financial impact based on each scenario, we could clarify climate change’s impacts on management, leading to a sustainable business plan.
Message from the Project Member
In this project, we assisted a major chemical manufacturer with TCFD disclosure by conducting risk and opportunity assessments and scenario analysis. We identified and assessed climate change risks (transition and physical), identified stakeholders, and evaluated business impacts using multiple scenarios, including those below 2°C, to develop response strategies. Lively analyzed these impacts based on the TCFD framework, enhancing the client's understanding of climate risks and leading to specific business plans to strengthen their management strategy. Lively offers support for sustainability-related disclosures, including TCFD. For inquiries, please contact us.
