CLIMATE RISK DISCLOSURE
[ORGANIZATION NAME]
Reporting Period: _________________________ to _________________________
Publication Date: _________________________
Report Prepared By: _________________________
ABOUT THIS DISCLOSURE
This Climate Risk Disclosure provides information about [Organization Name]'s climate-related risks, opportunities, governance, strategy, risk management, and metrics and targets. This disclosure is prepared in accordance with:
☐ Task Force on Climate-related Financial Disclosures (TCFD) Recommendations
☐ IFRS S2 Climate-related Disclosures
☐ California SB 261 Climate-Related Financial Risk Act
☐ EU Corporate Sustainability Reporting Directive (CSRD) / European Sustainability Reporting Standards (ESRS)
☐ CDP Climate Change Questionnaire
☐ Other: _________________________
EXECUTIVE SUMMARY
Climate Risk Overview
[Organization Name] recognizes that climate change presents material risks and opportunities for our business. This disclosure summarizes our approach to identifying, assessing, managing, and reporting on climate-related matters.
Key Highlights:
| Category | Summary |
|---|---|
| Climate Governance | |
| Most Significant Climate Risks | |
| Most Significant Climate Opportunities | |
| GHG Emissions (Total) | tCO2e |
| Emission Reduction Target | |
| Net Zero Commitment | By [Year] |
SECTION 1: GOVERNANCE
TCFD Recommendation: Disclose the organization's governance around climate-related risks and opportunities
1.1 Board Oversight
a) Board's oversight of climate-related risks and opportunities
[Describe how the board oversees climate-related matters]
☐ Board-level committee(s) responsible for climate: _________________________
☐ Climate matters reviewed at full board level
☐ Frequency of board review: ☐ Quarterly ☐ Semi-annually ☐ Annually ☐ As needed
☐ Board receives regular climate briefings and training
☐ Board approves climate strategy and targets
Board Climate Expertise:
| Board Member | Climate-Related Expertise/Experience |
|---|---|
Board Agenda Items Related to Climate:
| Item | Frequency | Last Review Date |
|---|---|---|
| Climate strategy and targets | ||
| Climate risk assessment | ||
| GHG emissions performance | ||
| Climate-related investments | ||
| Climate disclosure review |
b) Processes and frequency by which the board is informed
☐ Regular management reports
☐ Dedicated climate/ESG dashboard
☐ External expert presentations
☐ Site visits and operational reviews
☐ Risk committee reports
☐ Audit committee reports
1.2 Management's Role
a) Management's role in assessing and managing climate-related risks and opportunities
| Role | Responsibilities |
|---|---|
| Chief Executive Officer | |
| Chief Financial Officer | |
| Chief Sustainability Officer | |
| Chief Risk Officer | |
| Chief Operating Officer | |
| Other: |
b) Organizational structure for climate governance
[Describe management committees, working groups, or other structures]
_________________________________________________________________________________
☐ Climate/sustainability committee established
☐ Cross-functional climate working group
☐ Climate responsibilities integrated into existing roles
☐ Dedicated sustainability/climate team
c) Processes by which management is informed
☐ Monthly/quarterly performance reviews
☐ Risk management process integration
☐ Internal audit findings
☐ External assessment results
☐ Stakeholder feedback
SECTION 2: STRATEGY
TCFD Recommendation: Disclose the actual and potential impacts of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning
2.1 Climate-Related Risks
a) Climate-related risks identified over the short, medium, and long term
Time Horizons:
- Short-term: ☐ 0-1 year ☐ 0-3 years ☐ Other: _______
- Medium-term: ☐ 1-5 years ☐ 3-10 years ☐ Other: _______
- Long-term: ☐ 5-10 years ☐ 10-30 years ☐ Other: _______
Physical Risks:
| Risk Type | Description | Time Horizon | Likelihood | Magnitude | Business Impact |
|---|---|---|---|---|---|
| Acute | |||||
| Flooding | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Storms/hurricanes | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Wildfires | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Extreme heat | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Chronic | |||||
| Sea level rise | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Water stress | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Temperature increase | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L |
Transition Risks:
| Risk Type | Description | Time Horizon | Likelihood | Magnitude | Business Impact |
|---|---|---|---|---|---|
| Policy and Legal | |||||
| Carbon pricing | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Emission regulations | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Disclosure requirements | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Litigation risk | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Technology | |||||
| Technology transition | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Stranded assets | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Market | |||||
| Changing customer preferences | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Raw material costs | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Reputation | |||||
| Stakeholder concerns | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Industry stigmatization | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L |
2.2 Climate-Related Opportunities
b) Climate-related opportunities identified
| Opportunity Type | Description | Time Horizon | Likelihood | Magnitude | Business Impact |
|---|---|---|---|---|---|
| Resource Efficiency | |||||
| Energy efficiency | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Water efficiency | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Material efficiency | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Energy Source | |||||
| Renewable energy | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Products and Services | |||||
| Low-carbon products | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Climate solutions | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Markets | |||||
| New markets | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L | ||
| Resilience | |||||
| Adaptive capacity | ☐ S ☐ M ☐ L | ☐ H ☐ M ☐ L | ☐ H ☐ M ☐ L |
2.3 Impact on Business, Strategy, and Financial Planning
c) Impact on business, strategy, and financial planning
Business Impact:
[Describe how climate risks and opportunities have influenced the organization's business]
_________________________________________________________________________________
_________________________________________________________________________________
Strategy Impact:
[Describe how climate has influenced strategy, including products/services, supply chain, investment in R&D, operations, and acquisitions/divestitures]
_________________________________________________________________________________
_________________________________________________________________________________
Financial Planning Impact:
| Planning Area | How Climate is Considered |
|---|---|
| Operating costs | |
| Capital expenditures | |
| Acquisitions/divestitures | |
| Access to capital | |
| Asset valuation |
2.4 Scenario Analysis
d) Resilience of the organization's strategy under different climate-related scenarios
Scenarios Analyzed:
| Scenario | Description | Temperature Pathway | Time Horizon |
|---|---|---|---|
| Orderly transition | 1.5°C | ||
| Disorderly transition | 2°C | ||
| Hot house world | 3°C+ |
Scenario Analysis Methodology:
☐ Quantitative analysis
☐ Qualitative analysis
☐ Both quantitative and qualitative
☐ Third-party scenario data used (source: _________________________)
☐ Internal scenario development
Key Assumptions:
| Parameter | Orderly (1.5°C) | Disorderly (2°C) | Hot House (3°C+) |
|---|---|---|---|
| Carbon price ($/tCO2e) | |||
| Renewable energy penetration | |||
| Physical impact severity | |||
| Technology adoption rate |
Strategic Resilience Assessment:
| Scenario | Resilience Assessment | Key Vulnerabilities | Adaptation Strategies |
|---|---|---|---|
| 1.5°C | ☐ High ☐ Medium ☐ Low | ||
| 2°C | ☐ High ☐ Medium ☐ Low | ||
| 3°C+ | ☐ High ☐ Medium ☐ Low |
SECTION 3: RISK MANAGEMENT
TCFD Recommendation: Disclose how the organization identifies, assesses, and manages climate-related risks
3.1 Risk Identification and Assessment
a) Processes for identifying and assessing climate-related risks
[Describe processes used to identify climate-related risks]
_________________________________________________________________________________
☐ Integrated into enterprise risk management (ERM)
☐ Dedicated climate risk assessment process
☐ Third-party risk assessment tools used
☐ Physical risk modeling
☐ Transition risk assessment
☐ Value chain risk assessment
Risk Assessment Criteria:
| Factor | How Assessed |
|---|---|
| Likelihood | |
| Magnitude | |
| Velocity | |
| Vulnerability |
b) Processes for determining relative significance
[Describe how relative significance of climate risks is determined compared to other risks]
_________________________________________________________________________________
☐ Materiality thresholds applied
☐ Financial impact quantification
☐ Strategic importance assessment
☐ Stakeholder concern analysis
3.2 Risk Management
c) Processes for managing climate-related risks
[Describe how climate-related risks are managed, including mitigation, transfer, acceptance, or control]
_________________________________________________________________________________
Risk Response Strategies:
| Risk | Response Strategy | Actions | Status |
|---|---|---|---|
| ☐ Mitigate ☐ Transfer ☐ Accept ☐ Avoid | |||
| ☐ Mitigate ☐ Transfer ☐ Accept ☐ Avoid |
3.3 Integration into Overall Risk Management
d) Integration of climate risk into overall risk management
☐ Climate risks included in enterprise risk register
☐ Climate risks reported to risk committee
☐ Climate risks included in internal audit scope
☐ Climate risks considered in strategic planning
☐ Climate risks integrated into business continuity planning
[Describe how climate risk management is integrated with overall risk management]
_________________________________________________________________________________
_________________________________________________________________________________
SECTION 4: METRICS AND TARGETS
TCFD Recommendation: Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities
4.1 Climate-Related Metrics
a) Metrics used to assess climate-related risks and opportunities
Greenhouse Gas Emissions:
| Scope | Emissions (tCO2e) | Year | Methodology | Verification |
|---|---|---|---|---|
| Scope 1 (Direct) | ☐ Verified | |||
| Scope 2 (Location-based) | ☐ Verified | |||
| Scope 2 (Market-based) | ☐ Verified | |||
| Scope 3 (Total) | ☐ Verified |
Scope 3 Categories:
| Category | Emissions (tCO2e) | % of Total Scope 3 | Data Quality |
|---|---|---|---|
| 1. Purchased goods & services | ☐ High ☐ Med ☐ Low | ||
| 2. Capital goods | ☐ High ☐ Med ☐ Low | ||
| 3. Fuel and energy-related | ☐ High ☐ Med ☐ Low | ||
| 4. Upstream transportation | ☐ High ☐ Med ☐ Low | ||
| 5. Waste | ☐ High ☐ Med ☐ Low | ||
| 6. Business travel | ☐ High ☐ Med ☐ Low | ||
| 7. Employee commuting | ☐ High ☐ Med ☐ Low | ||
| 8. Upstream leased assets | ☐ High ☐ Med ☐ Low | ||
| 9. Downstream transportation | ☐ High ☐ Med ☐ Low | ||
| 10. Processing of sold products | ☐ High ☐ Med ☐ Low | ||
| 11. Use of sold products | ☐ High ☐ Med ☐ Low | ||
| 12. End-of-life treatment | ☐ High ☐ Med ☐ Low | ||
| 13. Downstream leased assets | ☐ High ☐ Med ☐ Low | ||
| 14. Franchises | ☐ High ☐ Med ☐ Low | ||
| 15. Investments | ☐ High ☐ Med ☐ Low |
Emissions Intensity:
| Metric | Current Year | Prior Year | Change |
|---|---|---|---|
| tCO2e per $M revenue | |||
| tCO2e per employee | |||
| tCO2e per unit produced |
Other Climate Metrics:
| Metric | Value | Unit |
|---|---|---|
| Energy consumption | MWh / GJ | |
| Renewable energy percentage | % | |
| Water withdrawal | megalitres | |
| Waste generated | tonnes | |
| Climate-related capital expenditure | $ | |
| Climate-related R&D spending | $ | |
| Revenue from low-carbon products | $ / % |
Risk and Opportunity Metrics:
| Metric | Value | Notes |
|---|---|---|
| Assets in high physical risk areas | ||
| Revenue exposed to carbon pricing | ||
| Internal carbon price used | ||
| % suppliers with climate targets |
4.2 Scope 1 and 2 Emissions (Detailed)
b) Scope 1 and Scope 2 GHG emissions, and related risks
Scope 1 Emissions by Source:
| Source | Emissions (tCO2e) | % of Total |
|---|---|---|
| Stationary combustion | ||
| Mobile combustion | ||
| Process emissions | ||
| Fugitive emissions | ||
| Total Scope 1 | 100% |
Scope 2 Emissions:
| Method | Emissions (tCO2e) | Notes |
|---|---|---|
| Location-based | ||
| Market-based |
Emissions by Region/Business Unit:
| Region/Unit | Scope 1 | Scope 2 | Total |
|---|---|---|---|
GHG Accounting Methodology:
☐ GHG Protocol Corporate Standard
☐ ISO 14064-1
☐ Other: _________________________
Organizational Boundary:
☐ Financial control
☐ Operational control
☐ Equity share
Global Warming Potentials:
Source: ☐ IPCC AR5 ☐ IPCC AR6 ☐ Other: _______
4.3 Targets
c) Targets used to manage climate-related risks and opportunities and performance against targets
Emission Reduction Targets:
| Target | Scope | Base Year | Base Year Emissions | Target Year | Target | Progress |
|---|---|---|---|---|---|---|
| Near-term | ||||||
| Long-term | ||||||
| Net zero |
Target Details:
☐ Science Based Targets initiative (SBTi) validated
☐ 1.5°C aligned
☐ Net zero target includes Scope 3
☐ Interim targets established
Net Zero Pathway:
| Year | Scope 1+2 Target | Scope 3 Target | Total Target |
|---|---|---|---|
| [Base Year] | |||
| 2025 | |||
| 2030 | |||
| 2040 | |||
| 2050 |
Other Climate Targets:
| Target | Base | Target | Target Year | Progress |
|---|---|---|---|---|
| Renewable energy | ||||
| Energy efficiency | ||||
| Low-carbon products | ||||
| Carbon price coverage |
Performance Against Targets:
| Target | Status | Commentary |
|---|---|---|
| ☐ On track ☐ Behind ☐ Achieved | ||
| ☐ On track ☐ Behind ☐ Achieved |
SECTION 5: TRANSITION PLAN
5.1 Transition Plan Overview
[Describe the organization's plan to transition to a lower-carbon economy]
_________________________________________________________________________________
_________________________________________________________________________________
5.2 Key Actions
| Action | Timeline | Investment | Expected Impact |
|---|---|---|---|
5.3 Decarbonization Levers
| Lever | Contribution to Target | Status |
|---|---|---|
| Energy efficiency | ☐ Implemented ☐ In progress ☐ Planned | |
| Renewable energy | ☐ Implemented ☐ In progress ☐ Planned | |
| Electrification | ☐ Implemented ☐ In progress ☐ Planned | |
| Process changes | ☐ Implemented ☐ In progress ☐ Planned | |
| Supply chain engagement | ☐ Implemented ☐ In progress ☐ Planned | |
| Carbon removals | ☐ Implemented ☐ In progress ☐ Planned |
5.4 Carbon Credits/Offsets
| Use of Offsets | Details |
|---|---|
| Current use | ☐ Yes ☐ No |
| Offset types | |
| Standards used | |
| Volume (tCO2e) | |
| Role in net zero |
SECTION 6: ASSURANCE
6.1 External Verification
| Data | Assurance Provider | Standard | Level | Report Date |
|---|---|---|---|---|
| Scope 1 emissions | ☐ Limited ☐ Reasonable | |||
| Scope 2 emissions | ☐ Limited ☐ Reasonable | |||
| Scope 3 emissions | ☐ Limited ☐ Reasonable | |||
| Other metrics | ☐ Limited ☐ Reasonable |
6.2 Internal Controls
[Describe internal controls over climate data and reporting]
_________________________________________________________________________________
SECTION 7: ADDITIONAL DISCLOSURES
7.1 Climate Lobbying and Political Engagement
[Describe approach to climate-related lobbying and advocacy]
☐ Climate lobbying policy in place
☐ Industry association memberships disclosed
☐ Alignment of lobbying with climate commitments assessed
7.2 Just Transition Considerations
[Describe considerations for workers and communities in the transition]
_________________________________________________________________________________
TCFD/ISSB INDEX
| Recommendation | Disclosure Location |
|---|---|
| Governance | |
| a) Board oversight | Section 1.1 |
| b) Management's role | Section 1.2 |
| Strategy | |
| a) Climate risks and opportunities | Sections 2.1, 2.2 |
| b) Impact on business, strategy, financial planning | Section 2.3 |
| c) Resilience under scenarios | Section 2.4 |
| Risk Management | |
| a) Risk identification and assessment | Section 3.1 |
| b) Risk management processes | Section 3.2 |
| c) Integration with overall risk management | Section 3.3 |
| Metrics and Targets | |
| a) Metrics used | Section 4.1 |
| b) Scope 1, 2, 3 emissions | Sections 4.1, 4.2 |
| c) Targets and performance | Section 4.3 |
APPROVAL AND CERTIFICATION
This Climate Risk Disclosure has been reviewed and approved by:
Chief Executive Officer:
Signature: _________________________________
Printed Name: _____________________________
Date: ____________________________________
Chief Financial Officer:
Signature: _________________________________
Printed Name: _____________________________
Date: ____________________________________
Board Approval Date: _________________________
FORWARD-LOOKING STATEMENTS
This disclosure contains forward-looking statements regarding our climate strategy, targets, and expectations. These statements involve significant risks and uncertainties. Actual results may differ materially from those expressed or implied.
NOTICE: This template is provided for informational purposes only and does not constitute legal advice. Climate disclosure requirements vary by jurisdiction and are evolving rapidly. Organizations should consult with legal, financial, and sustainability professionals to ensure compliance with applicable regulations, including California SB 253/SB 261, the EU CSRD, and any applicable securities law requirements. The TCFD has been incorporated into the ISSB standards, and many jurisdictions are mandating TCFD/ISSB-aligned disclosure.
About This Template
Jurisdiction-Specific
This template is drafted for general use across all U.S. jurisdictions. State-specific versions with local statutory references are also available.
How It's Made
Drafted using current statutory databases and legal standards for compliance regulatory. Each template includes proper legal citations, defined terms, and standard protective clauses.
Important Notice
This template is provided for informational purposes. It is not legal advice. We recommend having an attorney review any legal document before signing, especially for high-value or complex matters.
Last updated: February 2026