We are happy to announce that our project TCFD-aligned climate hazards data was selected by the Copernicus Climate Change Service for deployment as a Demo Case. This is our second project, after the High-resolution climate projections one, thats is selected and sponsored by the Copernicus Climate Change Service.
It is a challenge for financial institutions to identify, gather and process climate data to develop high-quality financial disclosures aligned with the Task Force on Climate-related Financial Disclosures (TCFD). The project aims to bridge the gap between climate data and the requirements of financial institutions by assembling a coherent dataset to support financial institutions to assess physical risk in line with TCFD recommendations.
The TCFD is an initiative established by the Financial Stability Board (FSB) to improve and increase reporting of climate-related financial information. It provides a framework for companies and organizations to voluntarily disclose the financial impacts of climate-related risks and opportunities, enhancing investors' and other stakeholders' ability to make informed decisions. The TCFD focuses on four key areas: governance, strategy, risk management, and metrics and targets, promoting the integration of climate-related issues into corporate reporting.
Physical risks, as outlined by the TCFD, are one of the primary categories of climate risks. They refer to the economic and financial impacts associated with the physical effects of climate change. This includes acute risks from increased frequency and severity of extreme weather events like storms, floods, and heatwaves, and chronic risks arising from long-term shifts in climate patterns leading to sea-level rise, changing precipitation patterns, and prolonged heat or cold spells. These physical manifestations of climate change can damage assets, disrupt supply chains, affect resource availability, and lead to significant economic losses. The TCFD encourages organizations to assess, manage, and transparently disclose their exposure to physical risks to mitigate financial impacts and contribute to more sustainable economic development.
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