Four Twenty Seven's monthly newsletter highlights recent developments in climate adaptation and resilience. This month, don't miss highlights from this year's risk reporting cycle, new resources for implementing the TCFD recommendations and opportunities to get involved in developing best-practices for climate risk disclosure!
In Focus: TCFD Reporting on the Rise
Task Force on Climate-related Financial Disclosures Status Report
The first Status Report from the Task Force on Climate-related Financial Disclosures (TCFD), released earlier this fall, summarizes the ways in which financial reports incorporate the TCFD recommendations. It includes a review of over 1,700 companies including banks, insurance, asset managers and asset owners representing the financial sector and energy, transportation, materials and agriculture in non-financial sectors.
While most of these companies made disclosures that aligned with at least one TCFD recommendation, companies rarely disclosed the financial impact of climate change and integrating scenario analysis remains a challenge. The report emphasizes the need for more "decision-useful" information and notes that TCFD integration will require continued industry-specific thought-leadership and knowledge exchange.
France Leads the Way with Article 173 Reports
The TCFD status report found that Europe had the highest percentage of companies integrating TCFD guidance into their disclosures, perhaps influenced by legislation such asFrance's Law on Energy Transition and Green Growth, with its Article 173 which mandates the disclosure of both physical and transition risks. Several French investors incorporate TCFD recommendations into their Article 173 reports, for example:
French sovereign wealth fund Fonds de Réserve pour les Retraites (FRR), insurance companies Allianz France and Aviva France incorporated Four Twenty Seven's physical risk analysis into their reports on climate risk (see Aviva 2018 report here)
The Asset Owners Disclosure Project's (AODP) report Winning Climate Strategies: Practical solutions and building blocks for asset owners from beginner to best practicesurveys the landscape of physical climate risk approaches to date, featuring investors such as Four Twenty Seven clients Aviva and First State Super for their innovative efforts to understand and address the portfolio risk posed by physical climate change.
AODP Global Climate Index 2018 for Pension Funds also gives a AAA rating, the highest score, to Four Twenty Seven client FRR, in recognition of its exhaustive effort to provide transparency on climate risk in its portfolios.
Four Twenty Seven Receives UNCTAD ISAR Honours for Climate Risk Scores
Interactive Online Tool with Sector-specific Guidance from EBRD
What should disclosures look like, in practice? The European Bank for Reconstruction and Development (EBRD) launched a Knowledge Hub with case studies and emerging best practices around physical climate risk and opportunity disclosures.
This interactive platform allows users to easily navigate to Manufacturing, Agribusiness, Power & Energy, Mining or Commercial Property sectors to access case studies with examples of approaching risks, opportunities and scenario analysis in physical risk disclosure.
IGCC Report Outlines Resources for Australian Asset Managers
The Investor Group on Climate Change's report Investing in Resilience: Tools and frameworks for managing physical climate riskis a concise resource guide for investors striving to incorporate physical climate risk into their decision-making. Specifically targeting Australian investors, the report includes a diverse set of risk assessment tools, ranging from Australian-specific geospatial tools to global datasets such as Four Twenty Seven's.
Opportunity for Investors to Contribute to Research on ESG Integration
Responsible Investor (RI) is investigating how ESG is integrated into investment decisions and is asking investors to fill out this five minute survey to share their approach to ESG. RI is seeking input from all perspectives, including investors who are active in the ESG space and those who are skeptical of these approaches. Respondents will remain anonymous and answers will not be attributable.
Assessing Risk to Build Resilience
Four Twenty Seven Appointed to Develop Resilience Primer for Shipping
Four Twenty Seven will develop a primer on best-practices and opportunities for building climate resilience in the shipping sector as part of the Resilience Shift initiative from Lloyds' Register. The initiative fosters global infrastructure resilience through projects, investments and events and Four Twenty Seven will support this effort by engaging with key stakeholders in the shipping sector to create industry-specific guidance on resilience strategies.
Webinar Recording: Climate Risk in Real Estate
Watch this webinar recording to learn about Four Twenty Seven and GeoPhy’s analysis of exposure to physical climate hazards in global real estate investment trusts (REITs). The presentations includes key findings from the white paper, Climate Risk, Real Estate, and the Bottom Line and a discussion of how physical climate data is leveraged in financial risk reporting for the real estate sector.
Inside the Office at Four Twenty Seven
Meet Vice President of Engineering, Klaus Fabian
Our VP of Engineering, Klaus Fabian, is automating our data analytics platform, building the user-interface that our clients are looking forward to. Klaus draws on more than 25 years of experience in new product development.
Klaus co-founded and served as CTO of Incorta, a business intelligence and analytics software provider funded by Google Ventures and Kleiner Perkins.
Previously he managed business intelligence and reporting software at Oracle, including BI Publisher and served as product manager for the Aegis Equity Portfolio Risk Analysis suite at MSCI (then Barra).
Upcoming Events
Join the Four Twenty Seven team in the field at these upcoming events:
November 13-15 – International Summit at Greenbuild Conference and Expo, Chicago, IL: Emilie Mazzacurati will provide the luncheon plenary address, "Climate Intelligence: Decision-making in the Age of Climate Change," on Tues Nov. 13.
November 27 - Risk Awards Gala, London, UK. Emilie Mazzacurati and Frank Freitas will join for the longest-running and most prestigious awards for firms and individuals involved in the global derivatives markets and in risk management.
November 26-28 – UNEP FI Global Roundtable & Climate Finance Day, Paris, France: Emilie Mazzacurati, Frank Freitas and Nathalie Borgeaud will participate in these events dedicated to mobilizing the financial sector to create a sustainable financial system.
December 5-6 – RI Americas, New York, NY: Hear Frank Freitas speak on a panel about climate risk in real estate markets and visit the Four Twenty Seven booth.
December 10-14 – AGU Fall Meeting, Washington, DC: Director of Analytics, Nik Steinberg, will present on the California Heat Assessment Tool at this annual meeting of climate scientists.
January 6-10 – 99th AMS Annual Meeting, Phoenix, AZ: Senior Data Analyst, Josh Turner, will present a poster on the California Heat Assessment tool during this convening of meteorologists and climate scientists.
January 7-10 – NCSE 2019 Annual Conference, Washington, DC: Director of Advisory Services, Yoon Kim, and Strategic Advisor, Josh Sawislak, will facilitate sessions on private sector roles in building community resilience and on climate-ready infrastructure, respectively.
February 12 – Investing for Impact, New York, NY: Hear Emilie Mazzacurati present on physical climate risks and opportunities at this annual convening hosted by The Economist.
Our mailing address is:
Four Twenty Seven
2000 Hearst Ave
Ste 304
Berkeley, CA 94709
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The TCFD status report found that Europe had the highest percentage of companies integrating TCFD guidance into their disclosures, perhaps influenced by legislation such as
