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MOEJ releases "Practical guide for Scenario Analysis in line with TCFD recommendations"

March 19, 2019

1.Back ground

In June 2017, the Task force on Climate-related Financial Disclosure (TCFD) published the recommendations (TCFD recommendation) that provided a foundation to improve investors' and others' ability to appropriately assess and price climate-related risk and opportunities.

In the TCFD recommendations, companies are asked to implement scenario analysis to figure out their climate-related risks and opportunities when they disclose their strategies to investors.

However, because there were few examples which explained and disclosed the process of scenario analysis, MOEJ started the support program for companies to analyze their own climate risks and opportunities in line with the TCFD recommendations in August 2018. In the program, MOEJ selected 6 Japanese companies by focusing on the sectors with the highest likelihood of climate-related financial impacts.

Based on the knowledge and experience through the program, MOEJ hereby releases the practical guide for scenario analysis in line with TCFD recommendations. This is the first practical guide to show how companies should implement scenario analysis to integrate climate-related risk and opportunities into their own management strategies by utilizing TCFD recommendations.

2.Outline of the guide

1. About TCFD

  1-1. Outline of TCFD

  1-2. TCFD recommendations and importance of scenario analysis

2. Examples of scenario analysis

  2-1. ITOCHU Corporation

  2-2. Mitsui O.S.K. Lines, Ltd.

  2-3. Japan Airlines Co., Ltd.

  2-4. Mitsubishi Motors Corporation

  2-5. Sumitomo Forestry Co., Ltd.

  2-6. Tokyu Fudosan Holdings Corporation

3. Examples of disclosures

4. Examples of material climate-related risks by sector

  4-1. Energy

  4-2. Transportation (Maritime transportation, Passenger air transportation, Automobiles)

  4-3. Buildings and Forest products

Practical guide is here

http://www.env.go.jp/policy/tcfd.html

3.Web

・TCFD 

https://www.fsb-tcfd.org/

・TCFDへの環境省の賛同について 

https://www.env.go.jp/press/105756.html

・環境省 脱炭素経営による企業価値向上促進プログラム

https://www.env.go.jp/press/105656.html

Practical guide for Scenario Analysis in line with TCFD recommendations.pdf

For any inquiry, please contact:

Masaya Okuyama, Masaaki Kishi, Takuto Sone

Cliamte Change Policy, Global Environmental Bureau, Ministry of the Environment, Japan.

Phone: +81-3-5521-8249 (ex. 6736, 6721, 6779) Facsimile: +81-3-3580-1382.

For Japanese

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