TCFD - Greater transparency in climate reporting
The Climate-Related Financial Disclosures Task Force calls for more transparency in corporate climate reporting. Companies are called on to analyse and assess the opportunities and risks arising from climate change.
The aim of the working group, which is headed by Michael R. Bloomberg, is to establish the subject of climate change and the resulting opportunities and risks as a topic in annual and financial reports. This is intended to improve comparability between reporting companies. In addition, companies should make forward-looking statements about the robustness of business models. The recommendations are divided into four subject areas: Governance, strategy, risk management as well as key figures and goals.
EnBW Integrated annual report 2019
What is to be achieved by the Task Force on Climate-Related Financial Disclosures?
Following the Climate Conference "COP21", which took place in Paris between 30th November and 12th December 2015, the Financial Stability Board was tasked with (Financial Stability Board, FSB) with devising recommendations for the development of uniform risk reporting. The "Task Force on Climate-Related Financial Disclosures" (TCFD) which was founded by the FSB on 4th December 2015, supports the disclosure of companies' climate change-related information and data. After intensive efforts, in June 2017, the recommendations of the TCFD for effective climate reporting were published.
The aim of the measures described is to improve the understanding of market actors of tangible climate-related risks and to help stabilize global financial markets. In addition, the assessment bases created should make it easier for market players to assess the opportunities and risks of climate change.
EnBW supports the goals of the Taskforce, especially as the energy sector faces major challenges due to climate change. Therefore, the reliable assessment of opportunities and risks is indispensable and also needs to be communicated transparently to key stakeholders.
With the participation of the EnBW Chief Financial Officer Thomas Kusterer were compiled by working group created by the Financial Stability Board as part of the Practical Recommendations for the Disclosure of Climate-Relevant Risks.
"Climate protection is becoming increasingly important in the financial market."
Thomas Kusterer, Chief Financial Officer
How does EnBW implement the TCFD recommendations in the context of the Integrated Annual Report 2019?
Through the participation of the EnBW Chief Financial Officer on the international Task Force on Climate-related Financial Disclosures, EnBW actively supports the strengthening of climate-related risk reporting by companies. In this Integrated Annual Report, we have taken into account the recommendations published by the TCFD in June 2017.
Index Task Force on Climate-Related Financial Disclosures (TCFD)
|
Concerns
|
Content
|
Section
|
Page Reference
|
|---|---|---|---|
|
Concerns
Governance
|
Content
Corporate management
Materiality analysis Investment guidelines Climate protection initiatives Overall assessment by the management Board of Management remuneration |
Section
Corporate governance
In dialogue with our stakeholders The EnBW Group In dialogue with our stakeholders, General conditions Overall assessment of the economic situation of the Group Remuneration report |
Page Reference
page 48
page 51 f. pages 76 pages 52;63 page 95 page 110 ff. |
|
Concerns
Strategy
|
Content
Robustness of business model / scenario analysis
Strategy, strategic development Interdependencies Materiality analysis Green bonds General conditions, climate protection |
Section
Business model
Strategy, goals and performance management system Strategy, goals and performance management system In dialogue with our stakeholders The EnBW Group General conditions |
Page Reference
page 33
pages 41 f. page 46 f. page 51f. page 74 f. page 63 f. |
|
Concerns
Risk Management
|
Content
Integrated opportunity and risk management including opportunity and risk map
Environment goal dimension: Opportunities and risks |
Section
Report on opportunities and risks
Report on opportunities and risks |
Page Reference
page 100 ff.
page 104 ff. |
|
Concerns
Performance
indicators and targets |
Content
Sustainability rating
Key performance indicators and long-term targets Environment goal dimension: key performance indicators and other performance indicators |
Section
In dialogue with our stakeholders
Strategy, goals and performance management system The EnBW Group |
Page Reference
page 53
page 44 ff. page 87 ff. |
In what way does EnBW provide support and information in relation to TCFD?
TCFD Electric Utilities Preparer Forums
EnBW employees were involved in the preparation of a report on climate-related financial reporting in the energy sector ("TCFD Electric Utilities Preparer Forum"), which was published in July 2019. The report contains several report examples of how the four core elements and eleven key aspects of the TCFD recommendations can be implemented.
More information on this topic can be found here: TCFD Electric Utilities Preparer Forums
In addition, the Technical Expert Group on Sustainable Finance (TEG) published in June 2019 the revised "Guidelines on non-financial reporting: Supplement on reporting climate-related information", which are based on a January 2019 report from the “TEG Subgroup Disclosure”. The TCFD recommendations formed the conceptual basis for the design of the supplement to climate-related reporting. EnBW Chief Financial Officer Thomas Kusterer has been a member of the TEG since June 2018.
The High-Level Expert Group on Sustainable Finance (HLEG, dt: High-Level Expert Group on Sustainable Financing) presented its final report "Financing a Sustainable European Economy" on 31st January 2018. Financing a sustainable European economy).
In it, the HLEG calls for more transparency in the financial markets for investment decisions, especially with regard to the inclusion of ESG factors (environmental, social and governance factors) and the opportunities and risks of climate change. In this regard, HLEG repeatedly advocates the implementation of the TCFD recommendations in its final report. In addition, the HLEG even addresses the potential of the TCFD framework to become the "new normal" for climate-related publications. Furthermore, according to the report, 230 companies have committed to implement the TCFD guidelines. EnBW belongs to this group of international pioneering companies.
More information on this topic can be found here:
EU download page HLEG report
Econsense and EnBW organized a workshop on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) on 5th December 2017. The workshop took place in direct cooperation with the TCFD and was mainly aimed at practitioners: firstly, reporting companies and secondly, financial market players, such as analysts and investors. The aim of the event was to highlight the added value of implementing the TCFD recommendations for reporting companies and addressees. It was also discussed how to prevent the implementation of TCFD recommendations from leading to unnecessary additional work.
Further information can be found here:
Conference Programme
As part of the 12th Joint meeting of the IFRS and HGB Technical Committee of the DRSC (Deutsches Rechnungslegungs Standards Committee eV) a discussion on the TCFD Guidelines and their implementation was held with representatives of the EnBW.
On 29th March 2017, the Schmalenbach Conference 2017 dealt with the topic of "Corporate Reporting - Quo vadis?" and provided information concerning current corporate reporting trends and the resulting requirements for companies, auditors, investors and other addressees.
A special focus of the conference was on potential improvements to corporate reporting. Thomas Kusterer spoke on "Integrated business reporting as a result of good corporate governance".
Further information can be found here:
Schmalenbach Meetings
Review of Schmalenbach Conferences
Programme
On Wednesday, 14th December 2016, a draft report of the TCFD recommendations was presented. After opening speeches by Michael R. Bloomberg and Marc Carney, Thomas Kusterer participated in the panel discussion.
The video and further information on the event can be found in the link to the event:
On Wednesday, 5th October 2016, around 90 corporate representatives, investors, analysts and NGOs discussed the added value of state-of-the-art climate reporting at the financial marketplace in Frankfurt am Main.
In opening speeches by EnBW Chief Financial Officer Thomas Kusterer and Deka-Investment Board Member Michael Schmidt, it became clear that companies as rapporteurs and investors as users of reports are convinced that meaningful climate-related risk reporting contributes to a better valuation of companies.
In particular, Thomas Kusterer addressed the work of the TCFD Task Force on Climate-Related Financial Disclosures. He explained that the aim of the TCFD is to produce recommendations for the most effective corporate reporting of climate change possible, whereby these recommendations should reflect the potential material and financial risks of climate change. In addition, proposals for maximum uniform, comparable reporting will be developed.