Chapter 9 Flashcards
Climate R measurement VS Climate R assessment
Measurement - quantifying impacts
CR assessment - process of identifying, analysis, managing potential impacts of CC on firm’s operations
IFRS S1 VS IFRS S2 diff
S1 - disclosure about sus-related R and opportunities
S2 - reqs for disclosing info about entity’s climate-related R and opportunities.
TCFD VS NGFS
TCFD - developed voluntary guidelines for C-related fin disclosures
NGFS - network of Central Banks and fin supervisors, vocuses on integrating С and env risk management into fin sector
ISSB VS TCFD
ISSB (Intern Sus Standards Board) - standards, developed to probide a baseline for sus reporting. ISSB is more specific standards for disclosure (IFRS S2), requires scenario analysis. ISSB is built upon TCFD and consolidates TCFD in itself.
TCFD - broader set of recommendations
Diff btw ISSB and TCFD recommendations on scenario analysis
- ISSB has more detailed info about R and opportunities concentration in the Company’s business model & value chain
- ISSB standards S1 and S2 are mandatory for compliance, with detailed reqs, TCFD only provides a framework for scenario analysis
- ISSB is more explicity with practical support for scenario analysis (with materials and guidance for companies)
Diff btw scenario analysis and resilience assessment
Scenario analysis - “what if”
Res. assessment - “so-what”
Nature Risk
R associated with the loss of natural assets
TNFD and what it is
TNFD - Taskforce on Nature-Related Fin Disclosure - initiative providing framework for orgs to address env R and opportunities, and enable bus to report and act on nature-related dependencies, impacts, R, opportunities
4 pillars of TNFD
Governance - procedures to monitor & manage nature-related issues
Strategy
Risk & Impact - processes to identify, assess, prioritize, monitor Nature-related issues
Metrics & Targets
