Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Environmental Challenges

• Lack of adequate documentation with respect to procedures and individual measures in ESG.
• Difficulty in communicating how good ESG performance translates into better corporate performance in capital market currencies.

Mitigation Strategies

• Developing and publishing an ESG strategy to enhance transparency about risk exposure.
• Making company-wide, practically oriented guidelines available online.
• Including CSR data as an integral part of statutory and legally required financial reporting.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Risks

Climate Goals & Targets

Environmental Challenges

• Heterogeneous practices among euro area institutions in addressing climate-related and environmental risks.
• Limited incorporation of climate-related and environmental risks into risk management frameworks.
• Sparse and heterogeneous disclosure practices regarding climate-related and environmental risks.
• Lack of common definitions and taxonomies for climate-related and environmental risks.
• Data gaps hindering comprehensive assessment and reporting.

Mitigation Strategies

• Development of this guide to outline ECB's expectations for managing and disclosing climate-related and environmental risks.
• Supervisory dialogue with institutions to address divergences in practices.
• Encouragement of institutions to participate in joint industry initiatives to develop methodologies and obtain data.
• Ongoing development of the ECB's supervisory approach to managing and disclosing climate-related and environmental risks.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Chronic weather patterns
• Water stress
• Resource scarcity
• Biodiversity loss
• Pollution

Transition Risks

• Policy and regulation
• Technology
• Market sentiment

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• ESG (Environmental, Social, and Governance)
• Sustainable Investing
• Integrated Reporting

Governance Achievements

• EFFAS holds board seats in EFRAG and IIRC, representing European users in financial reporting.

Climate Goals & Targets

Environmental Challenges

• Quantifying ESG information and reflecting it in share prices.
• Implementing mandatory CSR reporting for over 6,000 European companies.

Mitigation Strategies

• Offering structured ESG training since 2014.
• Providing a platform for discussion and analysis of ESG issues.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Integrated Reporting (IR), IFRS