The Mission of TCFD

The FSB Task Force on Climate-related Financial Disclosures (TCFD) developed voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers, and other stakeholders.

The Task Force considered the physical, liability and transition risks associated with climate change and what constitutes effective financial disclosures across industries.

The work and recommendations of the Task Force will help companies understand what financial markets want from disclosure in order to measure and respond to climate change risks, and encourage firms to align their disclosures with investors’ needs.

TCFD Disclosures in Mainstream Financial Filings

TCFD disclosures in mainstream (i.e., public) annual financial filings.

Shareholder engagement is expected to widespread TCFD disclosures.

Appropriate controls are expected to govern the production and disclosure of the required information.

TCFD disclousers are expected to be issued at least annually.

TCFD Governance & Leadership

The TCFD Core Elements

TCFD – A Global Consultation Process and Outcome

Stakeholder Engagement included allG20 countries.

Five types of engagement: publicconsultation, industry interviews, focusgroups, outreach events, and webinars.

In total, more than 2,700 individuals in43 countries were included in the TaskForce’s outreach and engagement.

The TCFD Recommendations Final Report

Contents

• Climate-Related Risks, Opportunities, and Financial Impacts• Recommendations and Guidance• Scenario Analysis and Climate-Related Issues• Key Issues Considered and Areas for Further Work

TCFD Recommendations provides context, background,and the general framework for climate-related financialdisclosures and is intended for broad audiences.

Download Report here.

The TCFD Recommendations Implementation Guide

Outline:

• Directions on the application of the recommendations;• Information on assessing financial impacts of climate-related risks and opportunities (collectively

referred to as climate-related issues);• Recommendations and supporting recommended disclosures that describe information that

investors, lenders, and insurance underwriters need to make economic decisions;• Guidance that provides context and suggestions for implementing the recommendations;• Supplemental guidance that highlights important considerations for the financial sector and non-

financial industries potentially most affected by climate change; and• Alignment of the recommended disclosures with other frameworks.

Contents:

• Guidance Framework (Governance, Strategy, Risk Management, Metrics and Targets, Alignmentof Recommended Disclosures with Other Frameworks)

• Supplemental Guidance for the Financial Sector (Banks, Insurance Companies, Asset Owners,Asset Managers, Carbon Footprinting and Exposure Metrics)

• Supplemental Guidance for Non-Financial Groups (Energy Group, Transportation Group, Materialsand Buildings Group, Agriculture, Food, and Forest Products Group)

Download Report here.

TCFD Founding Members• Air Liquide Group• Aviva Investors• AXA• Banco Bradesco• Barclays• BHP Billiton• BlackRock• Bloomberg LP and Bloomberg Philanthropies• Canada Pension Plan Investment Board• Daimler• Deloitte• EnBW Energie Baden-Württemberg AG• Eni• EY• Generation Investment Management• HSBC• Industrial and Commercial Bank of China

• JPMorgan Chase & Co.• KPMG• Mercer• Mitsubishi Corporation• Moody's Corporation• PGGM• Principles for Responsible Investment• Promontory Financial Group• PwC• Singapore Exchange• Standard and Poor’s Global Ratings• Swiss Re• Tata Steel Limited• The Dow Chemical Company• Tokio Marine Holdings• U.S. SEC• UBS Asset Management• Unilever

Indicative List of TCFD SupportersOver 500 organizations have expressed their support for the TCFD. The list below reflects all our current supporters as of April 2018.

• ABN AMRO Bank N.V.• ABP• Accenture• Acciona• Aegon N.V.• AES• AGL• AIMCO• Akzo Nobel N.V.• Alecta• Allianz SE• AMF• Amundi• Anglian Water• AP2• APG Groep N.V.• Arup• ATP• Aurizon• Australia and New Zealand Banking Group Limited• Avaada Group• Aviva Investors• Aviva plc• AXA Group• AXA Investment Managers• B3• Banco Santander• Bank of America• Barclays• Barrick Gold Corporation• BBVA• Bedfordshire Pension Fund

• BHP• BlackRock• Bloomberg LP• Bloomberg LP Retirement Plans• BME• BMO Financial Group• BNP Paribas• Bolsa de Comercio de Santiago• Borealis Group• Borsa Italiana• Boston Common Asset Management• BRAM – Bradesco Asset Management S.A. DTVM• British Columbia Investment Management Corporation• British Land• Brunel Pension Partnership• BTG Pactual S.A.• Burberry Group PLC• Caisse de dépôt et placement du Québec• CaixaBank• California Public Employees’ Retirement System (CalPERS)• California State Teachers’ Retirement System (CalSTRS)• Canada Pension Plan Investment Board• Capricorn Investment Group• Cbus Super• CCLA• Chittagong Stock Exchange Limited• Church Commissioners for England• Church of England Pensions Board• Citigroup Inc.• City Developments Limited• Coca-Cola HBC AG• Comgest Asset Management

• Commonwealth Bank of Australia• Crédit Agricole S.A.• Credit Suisse Group AG• Daimler• DBS• Deloitte Global• Desjardins Group• Deutsche Asset Management• Deutsche Börse Group• Diageo• DNB ASA• Domini Impact Investments• Dow Chemical Company• Dupont• Duratex S.A.• E.SUN Financial Holding• EDF Group• Ekatu• Elo Mutual Pension Insurance Company• Enagas• EnBW Energie Baden-Württemberg• Enel SpA• ENGIE Group• Eni SpA• Environment Agency Pension Fund• ERAFP• Euronext• EY Global Limited• Ferrovial• Fibria Celulose S.A.• Fidelity International• Fidelity Investments• Folksam

• FTSE Russell• Galp• Gas Natural Fenosa• Generation Investment Management• Glass Lewis• Glencore• GranBio Investimentos• Greater Manchester Pension Fund• Group La Française• Hannon Armstrong• Hermes Investment Management• Hochiminh Stock Exchange• HSBC Holdings plc• HSBC Pension Trust (UK) Ltd.• Iberdrola• Impax Asset Management Group plc• Industrial and Commercial Bank of China (ICBC)• ING Group• International Airlines Group• ISS• Itaú• JetBlue• Jinko Solar Co., Ltd• Johnson Controls• JPMorgan Chase & Co.• Jupiter Fund Management plc• KBC Group• Kering• Kokusai Kogyo Co., Ltd• KPA Pension• KPMG International• LafargeHolcim

Indicative List of TCFD Supporters

• Landsec• LeasePlan• Legal & General Investment Management• Legal & General MasterTrust and Legal &

General Independent Governance Committee• Leonardo• LGPS Central• Lloyds Banking Group• Local Pensions Partnership• London Pensions Fund Authority• London Stock Exchange Group• London Stock Exchange plc• LUX Resorts & Hotels• M&G Investments• M&S• Maersk• Manulife Financial Corporation• Mayfair Capital Investment Management LTD• Merchant Navy Officers Pension Fund• Mirova• Mistra – The Swedish Foundation for Strategic

Environmental Research• Mitsubishi UFJ Financial Group, Inc• Mizuho Financial Group• MN• Moody’s Corporation• Morgan Stanley• MP Pension• MS&AD Insurance Group Holding, Inc.• National Australia Bank• National Grid• National Stock Exchange of India, Ltd.• Natura Cosméticos S.A.• NEST

• Neuberger Berman• New York City Employees’ Retirement System• NN Group• Nordea Asset Management• Norges Bank Investment Management• Norsk Hydro ASA• NRG Energy Inc.• OFI AM• Olam International Limited• Ontario Teachers’ Pension Plan• OPTrust• Oslo Børs• P+(DIP/JOEP)• Pennon Group• Pensioenfonds Metaal en Techniek (PMT)• Pensioenfonds van de Metalektro (PME)• Pensioenfonds Zorg en Welzijn• PepsiCo, Inc.• Perennial Value Management• PGGM N.V.• Philips Lighting• PSP Investments• PwC• Qantas Airways• QBE Insurance Group Limited• Rabobank• RBS• Repsol• Robeco• RobecoSAM• Rockefeller Asset Management• Royal Bank of Canada• Royal DSM• Royal Dutch Shell plc.

• Royal Philips• RPMI Railpen• S&P Global• Safaricom, Ltd.• Saint-Gobain• Salesforce• Schneider Electric• Schroders• Scotiabank• Scottish Episcopal Church• Sembcorp Industries Ltd.• Singapore Exchange Limited• Singapore Telecommunications Ltd (Singtel)• Société Générale• Solvay• SOMPO Holdings, Inc.• Sopra Steria Group• South32• Standard Chartered• Standard Life Aberdeen plc• State Street Corporation• State Street Global Advisors• Statoil• Storebrand ASA• Suez• Sumitomo Chemical• Sumitomo Mitsui Financial Group• Swiss Re Ltd.• Sycomore Asset Management• Syngenta International• Tata Steel (India & South East Asia)• TD Bank Group• Teachers’ Retirement System of the City of New York• Telus

• Tesco• TIAA• The Co-operators Group• The Crown Estate• The Egyptian Exchange (EGX)• The New York City Board of Education

Retirement System• The Regents of the University of California, Office

of the Chief Investment Officer• The Virgin Group• Tokio Marine• Total S.A.• TPT Retirement Solutions• Türkiye Garanti Bankası A.Ş.• UBS Group• UC Rusal• Unilever• Unilever UK Pension Fund• Vale S.A.• Vanguard• Varma Mutual Pension Insurance Company• Veolia• VicSuper Pty Ltd.• Wellington Management• Wespath Benefits and Investments• Westpac• WHEB• Willis Towers Watson• Wipro Ltd• Workplace Safety & Insurance Board (WSIB)• WPP• YES BANK• Yorkshire Water• Zurich Insurance Group

The TCFD Knowledge Hub

https://www.tcfdhub.org

European Commission - Press releaseSustainable Finance: Commission's Action Plan for a greener and cleaner economy

Brussels, 8 March 2018

The European Commission is today unveiling its strategy for a financial system that supports the EU's climate and sustainable development agenda.

…Corporate Reporting: we propose to revise the guidelines on non-financial information to further align them with the TCFD Recommendations.

The TCFD Recommendations & the European Commission

The TCFD 2018 Status Report (26 Sep 2018)

The TCFD Recommendations & the Banking Sector

• This report is the result of a collaboration between 16 of the world’s leading banks with UN

Environment Finance Initiative (UNEP FI), to pilot scenario-based assessments of transition-related risks and opportunities as envisioned by TCFD.

• The report is the first in a two-part series publishing both the transition risk and physicalrisk assessment methodologies developed through the Working Group’s collaboration.

Download Report here.

Reduce the Company’s impact on climate change:

• Barrick analysed current and forecasted GHG emissions to develop an ambitious but realistic goal to reduceGHG emissions.

• By effectively managing its energy use, Barrick can reduce its draw from local energy grids, reduce its GHGemissions, achieve more efficient production, and save direct mining costs.

• Barrick has set a goal to keep its current GHG emissions flat in the short term and is targeting a 30%reduction in GHG emissions by 2030, from a 2016 baseline of 3.5 MT CO2e emitted.

Improve disclosure on climate change:

• Barrick committed to supporting TCFD Recommendations

• Barrick will implement the full recommendations over the next two years.

Case Study #1 – Barrick Gold

Case Study #2 - Glencore

Download Report here.

Case Study #3 – AXA Group

Editorial - Climate risk analysis: combining analysis and action ........................................................................................ 3 Report Structure: “Article 173” and “TCFD” reporting frameworks combined .................................................................. 4 1) Governance of ESG and Climate-related Risks and Opportunities ........................................................................... 4 Overall approach ................................................................................................................................................................... 4 ESG and climate-related governance ................................................................................................................................... 4 2) Strategy – Identification of ESG and Climate-related Risks and Opportunities ..................................................... 6 2.1 Investments ..................................................................................................................................................................... 6 Global Responsible Investment Strategy ............................................................................................................................. 6 Investment-related ESG risks and opportunities identification: scoring tools and methodology .................................... 7 Investment-related Climate risks and opportunities identification ................................................................................... 8 2.2 Insurance ....................................................................................................................................................................... 12 3) Risk Management : Integration of ESG and Climate-related Risks and Opportunities ........................................ 14 Sector exclusions ................................................................................................................................................................ 14 “One Planet Summit” 2017: a new climate ambition ........................................................................................................ 14 “2°C” portfolio alignment analysis ..................................................................................................................................... 17 Shareholder engagement ................................................................................................................................................... 18 Public policy outreach ........................................................................................................................................................ 19 Academic research .............................................................................................................................................................. 20 ESG-Related Investment products and communications towards clients ....................................................................... 20 ESG integration into insurance business ........................................................................................................................... 22 4) ESG and Climate-related Metrics and Targets ........................................................................................................... 24 Carbon footprinting ............................................................................................................................................................ 24 Impact Fund KPIs & corresponding UN Sustainable Development Goals ........................................................................ 27 Avoided emissions .............................................................................................................................................................. 28 Internal environmental footprint management ................................................................................................................ 28 Renewable energy sourcing target ..................................................................................................................................... 29 SRI Ratings........................................................................................................................................................................... 29 AXA Entity Sustainability Index ........................................................................................................................................... 30

Case Study #3 – AXA Group

TCFD Approach & Roadmap

Significant development/ initiative in sustainability/ ESG/ Risk Management /corporate responsibility with a direct impact on the bottom line

michael.spanos@globalsustain.org

NYC, May 1, 2018