In 2017, the Taskforce on Climate Related Financial Disclosures (TCFD) released recommendations on improving company disclosure on climate change across four key areas including Governance, Strategy, Risk Management and Metrics and Targets.
One of the Task Force's key recommended disclosures relates to the potential impacts of climate-related risks and opportunities on an organization's business, strategy, and financial planning under different potential future states (scenarios), including a 2° Celsius scenario.
The recommendations provide a useful framework by which to engage companies on climate change risks. As with other years, our engagement has focussed on policy and meetings with companies.
AMP Capital continued our involvement in the IGCC’s policy, adaptation and research committees. AMP Capital is Deputy Chair of the IGCC. The policy committee’s focus has been the government’s proposed National Energy Guarantee (NEG), While more detail is required to fully assess the impacts of the NEG, our analysis suggests it could be politically acceptable and provide an effective framework for companies and investors. Through our involvement in the research and adaptation working groups, AMP Capital has provided input into the IGCC report on Investing in Climate Adaptation and research on economic and social consequences of coal-fired power generation shutdowns.