(C2.3a) Provide details of risks identified with the potential to have a substantive financial or strategic impact on your business.
Question dependencies
This question only appears if you select “Yes” in response to C2.3.
Change from 2020
No change
Connection to other frameworks
TCFD
Strategy recommended disclosure a) Describe the climate related risks and opportunities the organization has identified over the short, medium, and long term.
Strategy recommended disclosure b) Describe the impact of climate-related risks and opportunities on the organization's businesses, strategy and financial planning.
Please note: columns 1-7 align with the TCFD recommendations.
SDG
Goal 12: Responsible consumption and production
Goal 13: Climate action
Response options
Please complete the following table. The table is displayed over several rows for readability. You are able to add rows by using the “Add Row” button at the bottom of the table.
| Identifier
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Where in the value chain does the risk driver occur?
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Risk type
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Primary climate-related risk driver
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Primary potential financial impact
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[Financial services only]
Climate risk type mapped to traditional financial services industry risk classification
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Company- specific description
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Time horizon
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Select from:
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Select from:
- Direct operations
- Upstream
- Downstream
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Select from:
- Current regulation
- Emerging regulation
- Legal
- Technology
- Market
- Reputation
- Acute physical
- Chronic physical
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See drop-down options below
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See drop-down options below
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Select from:
- Capital adequacy and risk-weighted assets
- Liquidity risk
- Funding risk
- Market risk
- Credit risk
- Reputational risk
- Policy and legal risk
- Systemic risk
- Operational risk
- Strategic risk
- Other non-financial risk
- None
|
Text field [maximum 2,500 characters]
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Select from:
- Short-term
- Medium-term
- Long-term
- Unknown
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| Likelihood
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Magnitude of impact
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Are you able to provide a potential financial impact figure?
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Potential financial impact figure (currency)
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Potential financial impact figure - minimum (currency)
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Potential financial impact figure - maximum (currency)
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Select from:
- Virtually certain
- Very likely
- Likely
- More likely than not
- About as likely as not
- Unlikely
- Very unlikely
- Exceptionally unlikely
- Unknown
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Select from:
- High
- Medium-high
- Medium
- Medium-low
- Low
- Unknown
|
Select from:
- Yes, a single figure estimate
- Yes, an estimated range
- No, we do not have this figure
|
Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]
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Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]
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Numerical field [enter a number from 0 to 999,999,999,999,999 using up to 2 decimal places]
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| Explanation of financial impact figure
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Cost of response to risk
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Description of response and explanation of cost calculation
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Comment
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| Text field [maximum 2,500 characters]
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Numerical field [enter a number from 0-999,999,999,999,999 using a maximum of 2 decimal places]
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Text field [maximum 2,500 characters]
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Text field [maximum 2.500 characters]
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[Add Row]
Primary climate-related risk driver drop-down options (column 4)
Select one of the following options:
Current regulation
- Carbon pricing mechanisms
- Enhanced emissions-reporting obligations
- Mandates on and regulation of existing products and services
- Regulation and supervision of climate-related risk in the financial sector [Financial services only]
- Other, please specify
Emerging regulation
- Carbon pricing mechanisms
- Enhanced emissions-reporting obligations
- Mandates on and regulation of existing products and services
- Regulation and supervision of climate-related risk in the financial sector [Financial services only]
- Other, please specify
Legal
- Exposure to litigation
- Regulation and supervision of climate-related risk in the financial sector [Financial services only]
- Lending that could create or contribute to systemic risk for the economy [Financial services only]
- Investing that could create or contribute to systemic risk for the economy [Financial services only]
- Insurance underwriting that could create or contribute to systemic risk for the economy [Financial services only]
- Other, please specify
Technology
- Substitution of existing products and services with lower emissions options
- Unsuccessful investment in new technologies
- Transitioning to lower emissions technology
- Other, please specify
|
Market
- Changing customer behavior
- Uncertainty in market signals
- Increased cost of raw materials
- Inability to attract co-financiers and/or investors due to uncertain risks related to the climate [Financial services only]
- Loss of clients due to a fund’s poor environmental performance outcomes (e.g. if a fund has suffered climate-related write-downs) [Financial services only]
- Contraction of insurance markets, leaving clients exposed and changing the risk parameters of the credit [Financial services only]
- Rise in risk-based pricing of insurance policies (beyond demand elasticity) [Financial services only]
- Other, please specify
Reputation
- Shifts in consumer preferences
- Stigmatization of sector
- Increased stakeholder concern or negative stakeholder feedback
- Lending that could create or contribute to systemic risk for the economy [Financial services only]
- Investing that could create or contribute to systemic risk for the economy [Financial services only]
- Insurance underwriting that could create or contribute to systemic risk for the economy [Financial services only]
- Negative press coverage related to support of projects or activities with negative impacts on the climate (e.g. GHG emissions, deforestation, water stress) [Financial services only]
- Other, please specify
Acute physical
- Increased severity and frequency of extreme weather events such as cyclones and floods
- Increased likelihood and severity of wildfires
- Other, please specify
Chronic physical
- Changes in precipitation patterns and extreme variability in weather patterns
- Rising mean temperatures
- Rising sea levels
- Deforestation [Financial services only]
- Water stress [Financial services only]
- Other, please specify
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Primary potential financial impact drop-down options (column 5)
Select one of the following options:
- Increased direct costs
- Increased indirect (operating) costs
- Increased capital expenditures
- Increased credit risk
- Increased insurance claims liability
- Decreased revenues due to reduced demand for products and services
- Decreased revenues due to reduced production capacity
- Decreased access to capital
- Decreased asset value or asset useful life leading to write-offs, asset impairment or early retirement of existing assets
- Reduced profitability of investment portfolios [Financial services only]
- Devaluation of collateral and potential for stranded, illiquid assets [Financial services only]
- Other, please specify
