Climate Scenario Analysis and TCFD Reporting Training Course

Climate Scenario Analysis and TCFD Reporting Training Course

Introduction

The global imperative for Climate Resilience and Financial Transparency has dramatically increased the demand for robust corporate disclosure. The recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) have emerged as the foundational global standard, moving climate change from a peripheral sustainability issue to a core financial and strategic concern. A key mandate under the TCFDΓÇÖs Strategy pillar is Climate Scenario Analysis, a crucial forward-looking tool that enables organizations to stress-test their Business Model Resilience against plausible futures, such as a Net-Zero 2050 pathway or a High-Physical-Risk world. Failure to assess and integrate these Physical and Transition Risks and opportunities into Enterprise Risk Management (ERM) and Financial Planning exposes firms to material financial and reputational losses, driving the urgent need for executive-level competency in this domain.

Climate Scenario Analysis and TCFD Reporting Training Course is designed to transition participants from theoretical understanding to practical, TCFD-aligned implementation. We will demystify the complex methodologies, including the selection and application of recognized scenarios like those from the NGFS and IEA, and provide actionable strategies for quantifying and integrating climate impacts into financial statements and capital allocation decisions. Beyond mere compliance, the training focuses on leveraging TCFD reporting as a catalyst for Strategic Agility, enhancing Stakeholder Engagement, and ultimately driving the successful formulation of a credible Climate Transition Plan. Mastery of this subject is essential for maintaining Regulatory Compliance with emerging standards like ISSB and EU CSRD, securing capital, and ensuring long-term corporate value creation in a rapidly changing climate.

Course Duration

5 days

Course Objectives

By the end of this course, participants will be able to:

1. Interpret and Apply the full scope of the TCFD Recommendations across the four pillars: Governance, Strategy, Risk Management, and Metrics & Targets.
2. Differentiate and Quantify the financial impacts of Physical Risks and Transition Risks
3. Design and Execute a tailored Climate Scenario Analysis Framework, including establishing appropriate time horizons and selecting key variables.
4. Master Scenario Selection, utilizing established models like the NGFS Scenarios.
5. Translate Scenario Outcomes into quantifiable financial metrics for risk-adjusted decision-making, including Impaired Asset Values and Cost of Capital.
6. Integrate climate-related risks and opportunities into the organization's Enterprise Risk Management (ERM) systems and processes.
7. Formulate a Credible Climate Transition Plan that aligns with a Science-Based Target (SBT) and demonstrates strategic resilience.
8. Develop High-Quality, Decision-Useful Disclosures for internal board reporting and external stakeholder communication, in line with emerging ISSB standards.
9. Assess and Optimize the organizational Climate Governance structure, including the role of the Board and executive remuneration.
10. Identify and Utilize relevant data sources and cutting-edge Climate Risk Modelling tools
11. Perform a Materiality Assessment to prioritize the most significant climate-related risks and opportunities for their specific industry sector.
12. Benchmark current reporting against leading Peer Disclosures and best practices for scenario analysis across industries.
13. Anticipate and Prepare for future global ESG Regulatory Requirements, including the EU CSRD and specific national mandates.

Target Audience

1. Chief Financial Officers (CFOs) and Finance Directors
2. Chief Risk Officers (CROs) and Enterprise Risk Management Professionals
3. Chief Sustainability Officers (CSOs) and ESG/Sustainability Leaders
4. Investor Relations (IR) Managers and Communications Directors
5. Heads of Corporate Strategy and Business Development
6. Board Members and Corporate Governance Teams
7. Asset Owners, Asset Managers, and Investment Analysts
8. Regulators, Central Bank Staff, and Financial Supervisors

Course Modules

Module 1: The TCFD Framework and Governance

• Deep Dive into the TCFD Pillars.
• Integrating Climate Governance into Board oversight and executive roles.
• Defining Materiality of climate risk.
• Linking climate metrics to Remuneration Policies and accountability.
• Case Study: National Grid's approach to Board oversight and integrating climate into a business-wide risk management framework.

Module 2: Identifying and Assessing Climate Risks

• Comprehensive classification of Physical Risks
• Detailed analysis of Transition Risks
• Methodologies for internal Risk Identification and data collection.
• Translating qualitative risks into potential Financial Impact drivers.
• Case Study: Nestl├⌐'s assessment of water stress and carbon pricing across its global supply chain.

Module 3: Foundations of Climate Scenario Analysis

• Stress-Testing business model resilience.
• Selecting appropriate scenarios
• Carbon Price, Technology Costs, and Climate Hazards.
• The difference between Exploratory and Normative scenarios.
• Case Study: Analysis of a major bank's use of NGFS Scenarios to assess credit portfolio risk in the energy sector.

Module 4: Quantitative Scenario Modelling

• Introduction to climate-economic models.
• Techniques for Quantifying financial impact.
• Developing an Internal Carbon Price for strategic planning.
• Modelling the impact on Asset Valuation and potential stranded assets.
• Case Study: Rolls-Royce's approach to scenario planning to stress-test its business under a low-carbon transition for its aerospace portfolio.

Module 5: Integrating Risk Management and Strategy

• Embedding scenario analysis results into the ERM system and existing risk appetite framework.
• Using scenario analysis to inform Capital Allocation and investment decisions.
• Identifying and capitalizing on Climate Opportunities
• Developing management actions for Adaptation and Mitigation.
• Case Study: ├ÿrsted's strategic shift from fossil fuels to a leading renewable energy company, guided by a clear view of long-term transition risk and opportunity.

Module 6: Metrics, Targets, and Transition Planning

• Mandatory and voluntary disclosure metrics.
• Setting Science-Based Targets for emissions reduction.
• The essential components of a robust, actionable Climate Transition Plan.
• Monitoring and reporting performance against established targets.
• Case Study: DS Smith PLC's use of TCFD metrics to inform their circular packaging goals and demonstrate resilience to market shifts.

Module 7: The Future of Climate Disclosure

• Navigating the convergence.
• Focus on Interoperability between disclosure standards.
• The role of Third-Party Assurance and external verification in enhancing credibility.
• Preparing for the shift from voluntary to Mandatory Disclosures.
• Case Study: A European multinational's roadmap for achieving compliance with the upcoming EU CSRD and its alignment with TCFD/ISSB.

Module 8: Practical Disclosure and Reporting Workshop

• Structuring the final TCFD Report and integration into financial filings.
• Effective communication of complex scenario results to the Board and Investors.
• Peer Benchmarking and best practice for clarity and completeness.
• Developing a draft TCFD Strategy Disclosure.
• Case Study: Deconstructing a recent, high-rated TCFD report to identify best-in-class reporting elements.

Training Methodology

This course employs a participatory and hands-on approach to ensure practical learning, including:

• Interactive lectures and presentations.
• Group discussions and brainstorming sessions.
• Hands-on exercises using real-world datasets.
• Role-playing and scenario-based simulations.
• Analysis of case studies to bridge theory and practice.
• Peer-to-peer learning and networking.
• Expert-led Q&A sessions.
• Continuous feedback and personalized guidance.

Register as a group from 3 participants for a Discount

Send us an email: info@datastatresearch.org or call +254724527104 

Certification

Upon successful completion of this training, participants will be issued with a globally- recognized certificate.

Tailor-Made Course

 We also offer tailor-made courses based on your needs.

Key Notes

a. The participant must be conversant with English.

b. Upon completion of training the participant will be issued with an Authorized Training Certificate

c. Course duration is flexible and the contents can be modified to fit any number of days.

d. The course fee includes facilitation training materials, 2 coffee breaks, buffet lunch and A Certificate upon successful completion of Training.

e. One-year post-training support Consultation and Coaching provided after the course.

f. Payment should be done at least a week before commence of the training, to DATASTAT CONSULTANCY LTD account, as indicated in the invoice so as to enable us prepare better for you.