The second G100 Roundtable on Climate Risk & TCFD was well attended

The Group of 100 (G100) in collaboration with A4S, CA ANZ and CPAA organised the second Roundtable on Climate Risk & TCFD, that was scheduled to take place during FY19/20. The event was hosted by EY on 26 November in Melbourne and Sydney simultaneously and focused on scenario selection and translating scenario outcomes to material risks. As part of the session, a survey was undertaken.

Terence Jeyaretnam, Partner, Climate Change and Sustainability EY & Chair, G100 Sustainability Working Group told us what the second roundtable sessions examined. “We covered existing guidance around scenario selection and modelling and shared some examples of how scenario modelling is used effectively in TCFD disclosures” he said. 

Earlier this year, ASIC released an updated version of its guidance to directors on the preparation of statutory required operating and financial reviews (RG 247) and materials for consideration by directors when making non-financial asset impairment assessments (INFO 203). RG 247 now makes explicit reference to the TCFD as relevant to the discussion of material business risks where climate change may be connected to an entity’s prospects for future financial years.

In releasing these updates, ASIC commissioner John Price reiterated ASIC’s continued oversight focus on developments in corporate climate risk disclosures. Elsewhere, the TCFD recommendations are being referenced as a significant driver of transformation in broader corporate disclosure. 

Initiatives such as the Corporate Reporting Dialogue, an alliance including the IIRC, GRI and CDP, is applying the TCFD disclosures as a basis for mapping between their various ESG/ non-financial disclosure frameworks with the objective towards agreement on alignment – and thus, hopefully, better more efficient and rational reporting.

ASIC documents are summarised/listed at here.

AASB Practice Statement 2 can be found here.