| Recommended Disclosure | Guidance for All Sectors | |------------------------|--------------------------| | a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term. | Organizations should provide the following information:
- A description of what they consider to be the relevant short-, medium-, and long-term time horizons
- A description of the specific climate-related issues potentially arising in each time horizon (short, medium, and long term) that could have a material financial impact on the organization; and
- A description of the process(es) used to determine which risks and opportunities could have a material financial impact on the organization.
Organizations should consider providing a description of their risks and opportunities by sector and/or geography, as appropriate. In describing climate-related issues, organizations should refer to Tables A1.1 and A1.2 (pp. 75–76). | | b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning. | Building on recommended disclosure (a), organizations should discuss how identified climate-related issues have affected their businesses, strategy, and financial planning.
Organizations should consider including the impact on their businesses, strategy, and financial planning in the following areas:
- Products and services
- Supply chain and/or value chain
- Adaptation and mitigation activities
- Investment in research and development
- Operations (including types of operations and location of facilities)
- Acquisitions or divestments
- Access to capital
Organizations should describe how climate-related issues serve as an input to their financial planning process, the time period(s) used, and how these risks and opportunities are prioritized. Organizations should provide a description of the interdependencies among the factors that affect their ability to create value over time.
Organizations should describe the impact of climate-related issues on their financial performance (e.g., revenues, costs) and financial position (e.g., assets, liabilities). If climate-related scenarios were used to inform the organization’s strategy and financial planning, such scenarios should be described. | | c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. | Organizations should describe how resilient their strategies are to climate-related risks and opportunities, taking into consideration a transition to a low-carbon economy consistent with a 2°C or lower scenario and, where relevant to the organization, scenarios consistent with increased physical climate-related risks.
Organizations should consider discussing:
- Where they believe their strategies may be affected by climate-related risks and opportunities;
- How their strategies might change to address such potential risks and opportunities;
- The potential impact of climate-related issues on financial performance (e.g., revenues, costs) and financial position (e.g., assets, liabilities); and
- The climate-related scenarios and associated time horizon(s) considered.
Refer to Section D in the document for information on applying scenarios to forward-looking analysis. |

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