Participation in TCFD Consortium (Task Force on Climate-related Financial Disclosures)
May 28, 2019
ITOCHU Corporation announced its support for the TCFD (*1), which encourages companies to disclose financial information related to climate change. We also participated in the TCFD Consortium (*2) established on May 27, 2019 by Ministry of Economy, Trade and Industry (METI), Ministry of the Environment (MOE), and the Financial Services Agency (FSA) as a body for promoting discussion and deliberation among companies and financial institutions supporting the TCFD mission.
In 2018, we received support from the MOE to conduct scenario analyses based on recommendations issued by the TCFD. A portion of our analysis results are introduced in “Practical Guide for Scenario Analysis in line with TCFD recommendations,” which was published by the MOE in March of this year.
Furthermore, in our ESG Report, we now include analysis and business impact evaluations using multiple scenarios (including the IEA 2°C scenario*) in line with TCFD recommendations. Beginning with coal-related businesses due to the potential for being significantly impacted by climate change and the resulting impact on our financial position, we will conduct analysis and evaluations for all ITOCHU businesses. We will create the optimal portfolio by evaluating risk severity and by identifying significant variable related to migration risks, after which we will use financial models reflecting those risks in each business.
By participating in this Consortium, we will engage in the appropriate disclosure of ITOCHU business opportunities and risks associated with climate change.
*1 Short for Task Force on Climate-related Financial Disclosures. The task force was established based on a recommendation by the Financial Stability Board (FSB). In June 2017, the TCFD published recommendations for ascertaining and the voluntary financial disclosure of information on the financial impact caused by climate-related risks and opportunities
*2 “TCDF Consortium to be inaugurated” (METI website)