MOL to Join TCFD Consortium
Japanese shipping giant Mitsui O.S.K. Lines (MOL) announced that it will participate in the Task Force on Climate-related Financial Disclosures (TCFD) Consortium, which was established to provide a forum for discussions among corporations and financial institutions that agree with "TCFD recommendations".
"This aims to ensure that companies factor in climate change-related risks and opportunities when they disclose their strategies to investors," said a press note from MOL.
The final report, released in June 2017 by the Task Force on Climate-related Financial Disclosures (TCFD), which was established by Financial Stability Board (FSB), by reflecting intention of G20 Financial Ministers and Central Bank Governors.
Four core elements—governance, strategy, risk management, and metrics and targets—are recommended in the report. One item, "Strategy," includes scenario analysis, which analyzes opportunities and risks that climate changes have the impact on corporations.
In 2018, backed by the Ministry of the Environment of Japan, MOL analyzed scenarios based on TCFD recommendation. A part of this analysis is introduced in the "Practical Guide for scenario analysis to integrate climate-related risk and opportunities into its own management strategies by utilizing TCFD recommendation," which was released in March.
MOL will utilize knowledge gained through the consortium and engage in effective disclosure of climate change-related risks and opportunities and how they will affect the company's business.