This shipping company was facing mounting pressure from its investors, led by BlackRock, to report on its climate risks and opportunities using the TCFD framework. On top of this, the maritime industry as a whole was becoming more climate conscious – GHG reductions plans were less of a “nice to have” and more of an expectation. However, the company had never done a TCFD report and wasn’t familiar with TCFD’s requirements, who they’d need to involve, and what data to collect.
Sustainable Business Consulting successfully guided the company through its first round of TCFD reporting, satisfying investor expectations and uncovering areas for improvement. Our team facilitated the following:
- Inter-departmental workshop covering TCFD requirements
- Climate scenario analysis to uncover climate risks and opportunities
- Sustainability gap analysis to determine what to include in the TCFD report
- Creation and design of full TCFD-aligned report covering the following topics:
- Governance
- Strategy, including medium- and long-term adaptation to physical and transition risks
- Risk assessment, including a climate-specific risk register
- Metrics and targets, including a 40% reduction in Scope 1 emissions by 2030 and net zero by 2050
- Climate risks and opportunities
- Provided strategic recommendations on how client could amplify risk mitigation efforts
The shipping company was not only able to meet investor expectations on TCFD reporting but was also able to create a roadmap for integrating climate risks into its enterprise risk management systems, financial planning, and capital expenditures.
Creating the TCFD report also prepared the company for upcoming climate disclosure regulation from the US SEC and allowed it to better position itself against the ISS ESG rating system. Finally, the company was able to make meaningful progress towards becoming a leader in the maritime industry and align with industry-wide goals of lowering GHG emissions impact.
