Climate Scenario Analysis Reference Approach

In October 2021, the Taskforce on Climate-related Financial Disclosures (TCFD) issued its latest Status Report, which showed significant momentum around adoption and support for its recommendations, but relatively low levels of disclosure in response to the recommendation that companies should assess their strategic resilience taking into consideration different climate-related scenarios.

WBCSD convened 12 leading companies that are supporters of the TCFD to develop business-relevant approaches to climate scenario analysis. Companies participating in the project come from industries across energy supply and primary demand and have formed the Climate Scenarios Energy Forum (the Energy Forum).

This report describes the Forum’s proposals for a business-relevant Climate Scenarios Reference Approach to be used for the purpose of assessing strategic resilience to climate risk and to inform disclosures in response to the TCFD’s recommendations. It provides context and basis for the approach of the Energy Forum and introduces the Climate Scenario Catalogue, an online platform that collates a range of scenarios and variables, with analysis by Vivid Economics.