Scenario analysis of climate-related physical risk for buildings and infrastructure: Financial disclosure guidelines & climate science guidance

The Task Force on Climate-Related Financial Disclosures (TCFD) has developed a set of recommendations that companies can use to disclose information about climate risks. The disclosures include physical, liability and transition risks.

The TCFD recognises that incorporating scenario analysis into strategic planning processes will improve over time as organisations ‘learn by doing’. To facilitate progress, the TCFD encourages the following:

• further developing 2°C or lower transition scenarios that can be applied to specific industries and locations along with supporting outputs, tools, and user interfaces
• developing broadly accepted methodologies, data sets, and tools for scenario-based evaluation of physical risk by organisations
• making these data sets and tools publicly available to facilitate use by organisations, reduce costs, minimise expertise differences between jurisdictions, enhance comparability of climate-related risk assessments, and help ensure comparability for investors
• creating more industry specific (financial and non-financial) guidance for preparers and users of climate-related scenarios.