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EBRD publishes third TCFD report on climate risk assessment

By Nigina Mirbabaeva

New report 

  • Third annual TCFD report discloses climate risk assessment methodologies and initial portfolio risk assessments
  • Bank accelerates progress on full Paris alignment by 2023 
  • EBRD dedicated to remaining at the forefront of disclosure best practice

The EBRD has published its third annual report based on the voluntary reporting framework of the Task Force on Climate-Related Financial Disclosures (TCFD).

“We are pleased to be able to share our progress in identifying and disclosing climate-related risks and considerations in the Bank’s investment decisions with our stakeholders,” said Annemarie Straathof, EBRD Vice-President, Risk and Compliance, “The report reaffirms our commitment to improving transparency and directing material investment to promote systemic change in our economies.”

The Bank recognises that integrating climate considerations into its investment decisions, along with transparent reporting of climate-related risk, is crucial to its commitment to support the transition to a low-carbon world and adapting to the impacts of climate change in the economies where it operates.

The report outlines the Bank’s ambitions in relation to climate policy, its climate-related risk processes and the enhancements and developments in 2021 for identifying, assessing and managing climate-related risks.

It includes details of the Bank’s assessment methodologies for both carbon-transition and physical climate risk and provides disclosures on the EBRD’s performance against climate risk indicators and metrics. It discloses EBRD’s exposure to high emitting sectors while highlighting that the EBRD finance flows are directed to support transition to low carbon pathways.  

The report includes an initial stress testing assessment of its top 100 corporate clients to climate scenarios of the NGFS. It further reaffirms the Bank’s progress on aligning all of its activities and investments with the goals of the Paris Agreement by 2023 and ensuring that Green Economy Transition (GET) projects account for at least 50 percent of all new Annual Bank Investment by 2025. It highlights that since June 2021, all of the EBRD’s new direct financing has been assessed for alignment with these goals. 

The TCFD was created in 2015 to foster reporting on the financial impacts to organisations from climate change and the global response to limit the change. It seeks to make firms’ climate-related disclosures more consistent and, therefore, more comparable. 

The EBRD is a leader in climate finance. In 2021 the EBRD exceeded its 2025 target of 50 per cent Green Economy Transition (GET) financing for environmentally sustainable activities.

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