Geneva/London, 12 July 2022: Today, through collaboration with PwC UK, the World Business Council for Sustainable Development (WBCSD) releases a new report helping companies, financial institutions and policy makers understand some of the assumptions and methodologies that feed into climate transition scenarios and models.
Climate transition scenarios and models enable companies to develop strategic plans that are flexible and resilient to a range of plausible future states. Climate scenario analysis is a key element of the recommendations from the Task Force on Climate-Related Financial Disclosure (TCFD). In October 2021, the TCFD issued its latest Status Report, which showed significant momentum around adoption and support for its recommendations, but the lowest levels of disclosure in response to the recommendation that companies should assess their strategic resilience taking into consideration different climate-related scenarios.
Climate scenarios often use models that are a product of assumptions, methodological choices, and a compromise between complexity and computation time. The report released today provides introductory information and educational material about climate transition scenarios and models. It provides an overview of the process through which scenarios are developed to equip leaders with the tools to be able to interpret the assumptions and modelling methods used. The report was developed to further support companies to follow the TCFD recommendations and assess their strategic resilience.
The work complements the release of the WBCSD’s Climate Scenario Analysis Reference Approach, including the Climate Scenario Catalogue v1.0, which collates a range of climate transition scenarios and variables that are relevant to the energy system.
The resource released today aligns with WBCSD’s strategic priorities in climate action and supporting member companies on how to engage capital markets on ESG performance.
Access the new report here.