(C-FS2.2b) Do you assess your portfolio's exposure to climate-related risks and opportunities?
Question dependencies
- This question only appears if you select “Yes” in response to C2.1.
- Rows in this question will be presented according to the activities reported in C-FS0.7.
Change from last year
No change
Rationale
The TCFD recommendations highlight the importance of the financial sector evaluating its exposure to climate-related risks and opportunities. When evaluating exposure to climate-related risks and opportunities, organizations in the financial sector should primarily consider the impact on their financial portfolios including lending, investment, insurance underwriting and/or other financial intermediary activities.
Connection to other frameworks
TCFD
Risk management recommended disclosure a) Describe your organization's processes for identifying and assessing climate-related risks.
NZAM (FS Only)
Commitment 3
Commitment 6
Response options
Please complete the following fixed row table.
(*column/row appearance is dependent on selections in this or other questions)
Portfolio* | We assess the portfolio's exposure | Explain why your portfolio's exposure is not assessed and your plans to address this in the future* |
---|---|---|
Banking (Bank) |
Select from:
|
Text field [maximum 2,500 characters] |
Investing (Asset manager) |
||
Investing (Asset owner) |
||
Insurance underwriting (Insurance company) |
Requested content
Portfolio (column 1)
- The rows presented in this question depend on the activities you selected in question C-FS0.7.
Explain why your portfolio's exposure is not assessed and your plans to address this in the future (column 3)
- This column only appears if any “No…” option is selected in column 2.
Explanation of terms
- Portfolio: In the context of this questionnaire your portfolio is the entire collection of the core financing activities and insurance policies that you offer. For banking, this is the entire collection of products, securities and loans held on your balance sheet for which you own the receivable stream. For asset managers, this is the entire collection of your products and investments that you hold and/or manage on behalf of your clients. For asset owners, this is the entire collection of products, funds and investments owned and controlled by your company. For investment portfolios, asset managers should consider discretionary investments, those where the company has discretion over investment decision. For insurance underwriting, this is the entire collection of products and insurance policies you provide to your clients.
- Climate-related risk: In line with TCFD, refers to the potential negative impacts of climate change on an organization. Physical risks emanating from climate change can be event-driven (acute) such as increased severity of extreme weather events (e.g., cyclones, droughts, floods, and fires). They can also relate to longer-term shifts (chronic) in precipitation, temperature and increased variability in weather patterns (e.g., sea level rise). Climate-related risks can also be associated with the transition to a lower-carbon global economy, the most common of which relate to policy and legal actions, technology changes, market responses, and reputational considerations.
- Climate-related opportunity: In line with TCFD, refers to the potential positive impacts on an organization resulting from efforts to mitigate and adapt to climate change, such as through resource efficiency and cost savings, the adoption and utilization of low-emission energy sources, the development of new products and services, and building resilience along the supply chain. Climate-related opportunities will vary depending on the region, market, and industry in which an organization operates.
C-FS2.2b - Scoring criteria
Disclosure scoring criteria
Points will be awarded per completed cell in proportion to the number of rows disclosed. Partially completed rows will not receive full points
A maximum of 4 points is available for this question
Awareness scoring criteria
Points will be awarded in per completed row in proportion to the number of rows disclosed as follows: any option selected excluding 'No, and we do not plan to in the next two years' in column 'We assess the portfolio's exposure'
A maximum of 3 points is available for this question
Management scoring criteria
Full Awareness points must be awarded to be eligible for Management points
Points will be awarded per completed row in proportion to the number of rows disclosed as follows: 'Yes' selected in column 'We assess the portfolio's exposure'
A maximum of 2 points is available for this question
Leadership scoring criteria
‘Yes’ selected in column 'We assess the portfolio's exposure' in all rows - 1 point
Point Allocation
Disclosure numerator |
Disclosure denominator |
Awareness numerator |
Awareness denominator |
Management numerator | Management denominator | Leadership numerator | Leadership denominator |
---|---|---|---|---|---|---|---|
4 | 4 | 3 | 3 | 2 | 2 | 1 | 1 |