{"id":25604,"date":"2020-04-24T09:18:53","date_gmt":"2020-04-24T07:18:53","guid":{"rendered":"https:\/\/preprod.i4ce.org\/publication\/scenario-analysis-of-the-issues-of-the-low-carbon-transition\/"},"modified":"2023-03-06T11:25:10","modified_gmt":"2023-03-06T10:25:10","slug":"scenario-analysis-of-the-issues-of-the-low-carbon-transition","status":"publish","type":"publication","link":"https:\/\/staging.i4ce.org\/en\/publication\/scenario-analysis-of-the-issues-of-the-low-carbon-transition\/","title":{"rendered":"Scenario analysis of the issues of the low-carbon transition"},"content":{"rendered":"<p><strong>From implementation to disclosure by companies in the TCFD framework<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>The transition to a low-carbon economy represents risks and opportunities for companies. Indeed, far-reaching changes are expected in socio-economic systems, with uncertainties about their timing and magnitude, and their economic and financial consequences. In this context, <strong>forward-looking methods \u2013in particular scenario analysis \u2013 are very useful to companies to inform strategic thinking and planning processes.<\/strong> In 2017, the TCFD (Task Force on Climate-related Financial Disclosures) published its recommendations on the integration of climate-related risks and opportunities: it recommends in particular that companies should use scenario analysis for strategic purposes, and disclose elements of these analyses in order to facilitate the incorporation of climate-related issues by the financial system.<\/p>\n<p>&nbsp;<\/p>\n<p>Although some companies have been using forward-looking scenario analysis for decades in their strategic thinking, <strong>the widespread application of such methods to climate-related issues presents difficulties.<\/strong> Moreover, precisions are expected on the information required by financial companies, and this disclosure raises confidentiality issues.<\/p>\n<p>&nbsp;<\/p>\n<p>The goal of this guide is therefore to support non-financial companies in:<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>the <strong>forward-looking analysis of the strategic issues of the low-carbon transition<\/strong>,<\/li>\n<li>and <strong>in their disclosure to financial stakeholders<\/strong>, in reference to the <strong>TCFD<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>Scenario analysis requires developing an <strong>in-depth knowledge of the company<\/strong> and <strong>exploring the dynamics of its changing environment<\/strong>. Numerous resources &#8211; methods and tools, literature &#8211; presented in this report are available to companies and can support them in the implementation of this process.<\/p>\n<p>&nbsp;<\/p>\n<p>In addition, this report suggests ways in which companies can provide financial actors with useful information on their scenario analysis approach, while <strong>overcoming the issue of confidentiality<\/strong>, illustrated by <strong>extracts from voluntary reporting<\/strong>.<\/p>\n<p>&nbsp;<\/p>\n<h6><span style=\"font-size: 16px;\">Discover our video: <u><a href=\"https:\/\/www.youtube.com\/watch?v=UaSee5YuG6M\" target=\"_blank\" rel=\"noopener noreferrer\">Why is scenario analysis useful in the context of the low-carbon transition ?<\/a> <\/u><\/span><br \/>\n<span style=\"font-size: 16px;\"><a href=\"https:\/\/staging.i4ce.org\/team-details\/charlotte-vailles-2\/\" target=\"_blank\" rel=\"noopener\">Charlotte Vailles<\/a> from I<span style=\"color: #ff0000;\">4<\/span>CE explains the importance for companies to perform this analysis and how to do it:<\/span><\/h6>\n<h6>\u00a0<\/h6>\n<div class=\"embed-container\"><iframe src=\"https:\/\/www.youtube.com\/embed\/UaSee5YuG6M\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/div>\n<p>&nbsp;<\/p>\n<p><em>Acknowledgements<\/em><\/p>\n<p><em>This publication is part of a project financed by Climate-KIC aimed at facilitating the use of scenarios by companies to anticipate the risks and opportunities of the transition to a low-carbon economy, in connection with the TCFD recommendations.<\/em><\/p>\n<p><a href=\"https:\/\/staging.i4ce.org\/wp-core\/wp-content\/uploads\/2020\/04\/Climate-Kic.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-25558 size-full\" src=\"https:\/\/staging.i4ce.org\/wp-core\/wp-content\/uploads\/2020\/04\/Climate-Kic.png\" alt=\"\" width=\"454\" height=\"88\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>From implementation to disclosure by companies in the TCFD framework &nbsp; The transition to a low-carbon economy represents risks and opportunities for companies. Indeed, far-reaching changes are expected in socio-economic systems, with uncertainties about their timing and magnitude, and their economic and financial consequences. In this context, forward-looking methods \u2013in particular scenario analysis \u2013 are [&hellip;]<\/p>\n","protected":false},"featured_media":50346,"template":"","meta":{"_acf_changed":false,"inline_featured_image":false},"type_publication":[49],"class_list":["post-25604","publication","type-publication","status-publish","has-post-thumbnail","hentry","type_publication-climate-report"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Scenario analysis of the issues of the low-carbon transition - I4CE<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.i4ce.org\/en\/publication\/scenario-analysis-of-the-issues-of-the-low-carbon-transition\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Scenario analysis of the issues of the low-carbon transition - I4CE\" \/>\n<meta property=\"og:description\" content=\"From implementation to disclosure by companies in the TCFD framework &nbsp; The transition to a low-carbon economy represents risks and opportunities for companies. 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