Understanding Climate Risks (Financial Implications of TCFD)
Our panel will discuss the transformation of climate risk into financial risk for business, as well as the thought processes utilised by financiers in selecting what organisations and projects to finance based on how they analyse their risk portfolio.
Climate risks have become a reality for business in the UK and their supply chains, and it is becoming increasingly important that organisations learn how to quantify these climate risks, as financial risks related to climate change are becoming a natural part of companies’ risk management and strategic planning processes.
The Task Force on Climate-related Financial Disclosures (TCFD) was created to improve and increase reporting of climate-related financial information. The TCFD develops recommendations on the types of information that companies should disclose to support investors, lenders, and insurance underwriters in assessing and pricing risks associated with climate change. The framework encompasses recommendations designed to help companies provide better information to support capital allocation, and in turn create a more successful and environmentally conscious business.
Through this, companies are becoming more environmentally conscious through their operations and investors gain a better understanding of the financial implications of the journey to low-carbon economies, alongside the associated physical risks of the climate crisis. This allows for more accurate pricing and the efficient allocation of capital, supported by transparent information.
In this session, we will be discussing the transformation of climate risk into financial risk for business, as well as the thought processes utilised by financiers in selecting what organisations and projects to finance based on how they analyse their risk portfolio.