Geneva, Switzerland, 1 July 2020: Today, through collaboration with the World Business Council for Sustainable Development (WBCSD), leading construction and building materials companies provide an in-depth look at climate-related disclosure in: “Construction and Building Materials TCFD Preparer Forum: Communicating collective and individual climate-related challenges and action”.
As part of the Task Force on Climate-related Financial Disclosures (TCFD) Preparer Forum for Construction and Building Materials, ArcelorMittal, CRH, LafargeHolcim, Lendlease, Saint-Gobain and Skanska share examples, learnings and reflections on how they are implementing the TCFD recommendations and responding to climate-related risks and opportunities. This is crucial to enhance business resilience and to contribute to building back better towards a low-carbon transition by providing decision-useful information for companies and investors alike.
“COVID-19 has taught us that we must build resilience against all the interconnected systemic risks we face, and the biggest of all remains climate change. Financial markets need robust, more comparable and complete information about climate change. Corporate disclosure of climate-related financial risks and opportunities helps meet that need, reflecting and supporting management and investor action” said Rodney Irwin, Managing Director, Redefining Value and Education, WBCSD.
This report, in conjunction with the work of other TCFD Preparer Forums, helps companies implement the TCFD’s recommendations on climate-related financial disclosure, reflecting the risk assessment, strategic scenario building and management decision-making that enables the low-carbon transition. The report showcases examples of effective disclosure practice across governance, strategy, risk management, metrics and targets.
Highlights include:
- A value-chain perspective on climate-related risks and individual and collective responses.
- The identification of collaboration and business opportunities associated with the low-carbon transition.
- The integration of climate-related risks and opportunities into governance and risk management processes.
- The use of scenario analysis to consider longer-term strategic resilience, identify the enabling conditions supporting the low-carbon transition.
- Illustrative climate-related metrics relating to low-carbon solutions, adaptation and resilience measures, financing, efficiencies and resource management.
- Perspectives and insights from users including equity and credit analysts.
Building on the efforts of the TCFD Oil & Gas, Electric Utilities, Chemicals, Food, Agriculture & Forest Products and Construction and Building Materials Preparer Forums, WBCSD is now initiating a TCFD Preparer Forum for companies involved in the manufacture and leasing of Automobiles.
Read the report here.
Quotes of support
“As the leading building materials business in the world, we are acutely aware of our role in advancing the global sustainability agenda. We view the TCFD recommendations as an important framework for ensuring our capital markets stakeholders fully understand the climate-related risks and opportunities facing CRH. We consider our participation in the TCFD construction sector preparer forum an important step in moving to consistent and transparent climate-related financial disclosures in our business.” Senan Murphy, Finance Director, CRH plc.
"LafargeHolcim is leading the way in low-carbon construction. With building representing a significant share of CO2 emissions, sustainability in our industry is a matter of global concern. We have long supported the TCFD's recommendations for disclosing climate-related risks and opportunities. By laying a foundation for comparability and collaboration across the construction value chain, this Preparer Forum report sharpens the focus for our industry in particular. The report also gives policymakers and other actors a basis for accelerating innovation and adoption of the products that will decarbonize our built environment.” Magali Anderson, Chief Sustainability Officer, LafargeHolcim
“Climate change, and society’s response to it, are now recognised as foundational drivers of risk and opportunity within the global economy. In 2018, Lendlease committed to incorporating the TCFD framework into our disclosure regime. As a result, we’re much better equipped to provide our investors and stakeholders insights on how we’re building resilience to climate-related risks and opportunities. In sharing our experiences and outcomes on scenario planning for climate impacts, we hope others in the sector will be encouraged to commit to this important evaluation and disclosure.” Andrew Wilson, Group Chief Commercial and Risk Officer & Chair of Lendlease TCFD Steering Committee
“To reduce the building sector’s contribution to worldwide greenhouse-gas emissions, Saint-Gobain manufactures and distributes building materials- including glass, insulation, and plasterboard—that improve energy efficiency in existing and new buildings. Saint-Gobain upholds the recommendations of the G20 Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD).In 2019, the Group participated in the TCFD Preparer Forum working group dedicated to the construction market and initiated by WBCSD. The great added value of such Forum was not only to learn experience from other members on how they approach TCFD recommendations but also to work together over the construction market value chain in order to understand the stakes of climate change for each. As an illustration, Saint-Gobain’s insulation solutions offset the emissions linked to their entire lifecycle once they have been in use for an average of three months.” Emmanuel Normant, Saint-Gobain CSO
” The construction and development sector is a key player for a long-term transition to a low-carbon economy. In order to be a change maker for a climate smarter society we need a better understanding of material risks, opportunities and which actions that are of most impact, throughout our value chain. The insights gained in the work with the report strengthen Skanska’s journey towards net zero carbon emissions by 2045.” Lena Hök, Senior Vice President Sustainability, Skanska Group
