The TCFD, Task Force on Climate-Related Financial Disclosures -reporting framework helps to assess the impacts of climate-related risks and opportunities on business, strategy and financial decision-making. Elenia has produced TCFD reports since 2021.
The TCFD report covers governance, strategy, risk management, and metrics and targets.
The aim is to identify potential climate-related risks and opportunities
In TCFD reporting, climate risks are categorised as physical risks and transition risks. Examples of the physical climate risks in Elenia’s operations include acute risks, such as various extreme weather events, and chronic risks, such as shorter frost seasons. In addition to physical risks, we have identified transition risks, which are categorised into policy and regulation risks, technology risks, market risks and reputation risks.
Climate-related perspectives can also present business opportunities. We have identified such opportunities in Elenia’s operations in the areas of resource efficiency, energy sources, products and services, markets and resilience.
More information on Elenia’s climate-related risks and opportunities, and their financial impacts, is provided on pages 24–25 of the sustainability report.
Scenario analysis as part of sustainability assessments
The scenario analysis completed in 2022 in accordance with the TCFD recommendations strengthens Elenia’s strategic resilience to the impacts of climate change. We chose three IPCC physical climate scenarios and three IEA transition scenarios for Elenia. These choices allowed us to consistently assess events and uncertainties from the perspective of factors that are relevant to Elenia, and the differences in approaches between the scenarios enhance our preparedness. We assessed the potential realisation and impacts of climate-related risks and opportunities in light of the different scenarios. We describe our risk mitigation measures in more detail in the scenario analysis.
For more information, please refer to our TCFD report included in the Elenia and Sustainability 2022 report on pages 22–23.