L3.3Report on climate risks and actions

One of the most significant risks that organizations face today relates to climate change. Increasing impacts of climate change pose risks to physical infrastructure, and the transition to a low-carbon economy presents both risks and opportunities. In past, many organizations have viewed the implications of climate change to be relevant only in the long term and therefore would not consider them in present decision-making. Those views, however, are changing as more information becomes available on the widespread financial impacts of climate change.

Climate-related financial disclosure is the practice of disclosing an organization’s risks and opportunities associated climate change. The Task Force on Climate-related Financial Disclosures (TCFD) was developed in 2015 by the Financial Stability Board, originally as a voluntary framework by and for the private sector, and is increasingly being adopted by the public sector. The TCFD developed recommendations around four thematic areas that represent core elements of how organizations operate: governance, strategy, risk management, and metrics and targets. The City will explore implementing these recommendations to report climate-related risks and opportunities through existing reporting processes.