TCFD, Art 173 & 2°C Alignment
Objective:Regulatory schemes and initiatives for disclosure such as the Task Force on Climate-related Financial Disclosures (TCFD), the French Energy Transition Law or the EU Commission's Initiative on Sustainable Finance mean investors need to improve disclosure and reporting of climate risks exposure. South Pole helps its financial sector clients align with these initiatives and meet regulators' expectations.
In accordance with the TCFD recommendations, we assist you to report on quantitative risk metrics and qualitative analysis applying scenario-based analysis with global coverage.
In addition we support clients with Article 173 compliance, in the context of the French Energy Transition Law, including the preparation of high-level reports on a client portfolio's alignment with the international climate goal of limiting global warming to 2°C. Specifically, our approach includes the following services:
- Description of material climate-related risks, including the applied approach and process for identifying and assessing risks
- Description of climate scenarios used for assessing material future climate risks
- Portfolio analysis focusing on portfolio-level and underlying holdings' positive and negative contributions to a 2°C future
- Synthesis of the results, including portfolio resilience to climate change and possible strategic actions to be taken based on the results