Implementing the TCFD recommendations
Supported by over 500 institutions and companies, the FSB Task Force on Climate-related Financial Disclosures (TCFD) provides a common disclosure framework for making climate risks and opportunities more transparent.
As of January 2019, over 10 governments and financial regulators have endorsed it or have active consultations on incorporating the TCFD recommendations into existing disclosure regulation. The recommendations have also been incorporated into the PRI’s Reporting Framework.
Resources for PRI climate risk inidicators
To support investors’ disclosure through the TCFD framework, the PRI has developed practical guidance on tackling the key challenges investors are facing in Implementing the TCFD Recommendations.
The 2019 PRI climate risk indicators, which are aligned with the TCFD recommendations, are available with guidance notes here. The indicators are voluntary and a non-assessed part of the PRI Reporting Framework. To help signatories prepare their responses, this page provides an overview of resources.
PRI and external reports
- The PRI Asset Owner guide to TCFD: actions for asset owners, questions for consultants, investor examples and a chapter on climate scenarios.
- The TCFD Knowledge Hub: an online portal for published resources on TCFD.
- IIGCC’s Navigating climate scenario analysis: a guide for institutional investors.
- UK-China TCFD pilot first year progress report: multi-year implementation plans and case studies from 10 financial institutions.
- PRI 2018 climate risk indicators: how and why to report: includes three investor examples on implementing climate disclosure frameworks (some 2018 indicators have been revised in 2019).
- Climate scenario analysis and PACTA: overview of climate scenarios, PACTA and California Insurance Commissioner.
PRI signatory reporting on the 2018 climate indicators
- Climate snapshot report: analysis of investors’ response to the PRI 2018 climate risk indicators.
- Data portal: searchable database of over 100 public investor responses the 2018 climate risk indicators.
Table of reference climate scenarios
PRI Reporting Framework Indicator SG 13.8CC invites signatories to select which climate reference scenarios they use from a list. See the table below for an overview of these scenarios.
|Provider||Name||Key characteristic||Emission peak year||Year for net-zero emissions||Reference|
|Energy transition scenarios|
|IEA||Beyond 2 Degrees Scenario||Limits warming to 1.75⁰C by 2100. Starts in 2014.||2017||2060||2 Degrees of Separation, PACTA, TPI, TCFD technical annex|
|IEA||Energy Technology Perspectives 2 Degrees scenario||ETA 2⁰C scenario. From 2014-2100||2020||2060 for power||TPI|
|IEA||Sustainable Development Scenario||Combines climate and social targets for limiting global warming to 2⁰C. Starts in 2016 until 2040.||2020 for energy and industry||Not modelled (beyond 2040)||PACTA|
|IEA||New Policy Scenario||Pathway if all new policy, set out in countries’ NDCs, are effectively implement. From 2016-2040||2029 (China peak energy only)||Not modelled (beyond 2040)||2DS, PACTA, TPI, TCFD technical annex|
|IEA||Current Policy Scenario (CPS)||Business-as-usual without new climate policies. From 2016-2040||No peak||No net zero||PACTA, TCFD technical annex|
|IRENA||RE Map||Doubles renewable energy share of world’s energy mix by 2030. From 2010-2030||PACTA, TCFD technical annex|
|Greenpeace||Advanced Energy [R]evolution||Pathway for a fully decarbonised energy system by 2050||PACTA, TCFD technical annex|
|Institute for Sustainable Development||Deep Decarbonization Pathway Project (DDPP)||Country level pathways for reducing emissions consistent with 2⁰C. From 2010-2050||TCFD technical annex|
|Bloomberg||BNEF reference scenario||Power sector pathway scenario||PACTA, TCFD technical annex|
|Physical climate scenarios|
|IPCC||Representative Concentration Pathway (RCP) 8.5||High emission scenario, 4-5⁰C, consistent with no policy changes to reduce emissions||No peak||No net zero||TCFD technical annex|
|IPCC||RPC 6||High-to-immediate climate emissions scenario, 2~3.7⁰C.||2080||No net zero||TCFD technical annex|
|IPCC||RCP 4.5||Immediate climate emission scenario. Global emissions peaking in 2040 and falling rapidly thereafter until 2080||2040||No net zero||TCFD technical annex|
|IPCC||RCP 2.6||Limits warming to the Paris Agreement’s target of 2⁰C by 2100||2020||2070||TCFD technical annex|