(C-FS2.2d) Does your organization consider climate-related information about your clients/investees as part of your due diligence and/or risk assessment process?
Question dependencies
Rows in this question will be presented according to the organizational activities reported in C-FS0.7. This question is not shown if “Insurance underwriting (Insurance company)” is the ONLY selection in C1 of C-FS0.7 and “Life and/or health” is the ONLY section in C2 of C-FS0.7.
Change from last year
No change
Rationale
Considering climate-related information about clients/investees in the initial phases of risk assessment and/or as part of your due diligence process helps investors and organizations in the financial sector better understand their value chain’s exposure to climate-related risks and opportunities.
Connection to other frameworks
TCFD
Risk management recommended disclosure a) Describe your organization's processes for identifying and assessing climate-related risks.
Risk management recommended disclosure b) Describe the organization's processes for managing climate-related risks.
Response options
Please complete the following table:
(*column/row appearance is dependent on selections in this or other questions)
Portfolio* | We consider climate-related information | Explain why you do not consider climate-related information 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
General:
- For each of your financial portfolios, disclose whether you consider climate-related information about your clients /investee companies as part of your client screening, risk assessment and/or due diligence process.
- Incorporating climate-related information into business processes can take many forms. This assessment is dependent on the organization’s client base and scale of business.
- Banks:
- Incorporating clients’ climate-related information in borrower and deal-level credit risk and other pre-lending assessments such as due diligence and “know your client” processes.
- For the purpose of this question focus on your commercial/corporate clients
- Asset managers:
- Incorporating investees’ climate-related information in fund allocation and investment risk assessment processes.
- Insurance companies
- Incorporating policyholders’ climate-related information in insurance underwriting due diligence processes.
Portfolio (column 1)
- The options which appear are driven by the activities you selected in C-FS0.7
Explain why you do not consider climate-related information 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
- Due diligence: Research or investigation performed by the financial services company before entering into an agreement or a financial transaction with another party. There are many types of due diligence. Relevant ones may include client due diligence, environmental due diligence and Know Your Client (KYC) processes.
- Portfolio: In the context of this questionnaire your portfolio is the entire collection of your core financing activities and insurance policies that you offer. For bank lending, this is the entire collection of products 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.
C-FS2.2d - 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 2 points is available for this question
Awareness scoring criteria
Points will be awarded per completed row in proportion to the number of rows disclosed: any option selected excluding 'No, and we do not plan to in the next two years' in column 'We consider climate-related information'
A maximum of 1 point 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: either 'Yes' OR 'No, but we plan to do so in the next two years' selected in column 'We consider climate-related information'
A maximum of 2 points is available for this question
Leadership scoring criteria
'Yes' selected in column 'We consider climate-related information' in all rows - 1 point
Point Allocation
Disclosure numerator |
Disclosure denominator |
Awareness numerator |
Awareness denominator |
Management numerator | Management denominator | Leadership numerator | Leadership denominator |
---|---|---|---|---|---|---|---|
2 | 2 | 1 | 1 | 2 | 2 | 1 | 1 |