GeSI releases a new Climate Scenario Analysis Framework to help companies share consistent and transparent disclosures to investors
Today, GeSI (the Global Enabling Sustainability Initiative) launched its Climate Scenario Analysis Framework to help ICT sector companies align with the Taskforce on Climate-related Financial Disclosures (TCFD) and understand the financial impact of climate change on their bottom-line.
Developed by Carbon Credentials, data savvy energy performance and carbon management experts, it provides an adaptable framework for ICT sector companies to follow. It's intended to facilitate internal discussions and provide scenario analysis outputs.
"A key recommendation of the TCFD is for organizations to conduct scenario analysis in order to understand how different climate futures could affect their business. Assessing the financial implications of climate-related risks and opportunities is not an easy task due to the uncertainty over the timing of climate impacts, the range of potential business consequences and the range of potential business consequences."
"This guide provides a Scenario Analysis Framework to enable our members to begin to construct their own climate scenario analysis and align to the TCFD recommendations. Members can use and adapt the Framework in multiple ways, depending on their specific needs" said Luis Neves - GeSI CEO.
Consistent and transparent disclosure around climate-related risks and opportunities will allow investors to make better decisions when allocating capital, resulting in more stable and resilient economies.
"Over the next decade, ambitious action is needed from all sectors to transition to a more sustainable, low-carbon economy. The ICT sector has a key role to play in enabling the transition, by providing the technological development and data capabilities to disrupt markets and advance sustainable solutions. Identifying and managing climate related risks and opportunities will help prepare businesses for future regulatory disruption, lower costs and will help identify new markets and revenue streams" said Richard Tarboton, Director of Strategic Services at Carbon Credentials.
The Climate Scenario Analysis Framework is structured around the climate-related scenario process recommended by the TCFD. It outlines a three-year roadmap so that processes become part of a company's risk management, strategic planning and disclosure procedures.
GeSI's Framework enables a company to work through a process to assess the materiality of climate-related risks and opportunities, identify and define a range of climate scenarios, evaluate the financial impact and find potential responses.