The Asian Development Bank (ADB) released its inaugural climate-related financial disclosures report, further demonstrating ADB’s commitment to addressing climate change as Asia and the Pacific’s climate bank.
The Climate-related Financial Disclosures 2021 report outlines ADB’s progress in implementing the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD).
“The release of this report is a milestone for ADB and underscores the importance of climate change to the development agenda,” said ADB President Masatsugu Asakawa. “ADB is Asia and the Pacific’s climate bank and the TCFD report is one more step in our commitment to the battle against climate change. It demonstrates to ADB’s investors, shareholders, and our community of stakeholders that ADB is committed to strengthening climate action and climate business operations while increasing transparency on ADB’s exposure to climate-related opportunities and risks through enhanced disclosures.”
ADB declared its support for the TCFD last year. Fulfilling the disclosure requirements under the TCFD framework allows ADB to communicate to stakeholders that it is firmly committed to integrating climate risk management and opportunity assessments into its operations. It also illustrates ADB’s support of climate risk disclosure not only amongst multilateral development banks but across the world’s corporate and financial sectors.
ADB’s commitment to strengthening its climate action and climate business operations was underscored today with the launch of its inaugural climate-related financial disclosures report at the #ADBAnnualMeeting.
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— Asian Development Bank (@ADB_HQ) September 28, 2022
The TCFD was established in 2015 by the Financial Stability Board to improve and increase reporting of climate-related financial information for consistent use by organizations in providing information to stakeholders. In 2017, the TCFD provided a set of recommendations that are considered an international standard for climate-related financial disclosure and centered around four pillars: governance, strategy, risk management, and metrics and targets.
Among the highlights of ADB’s progress in implementing the TCFD framework has been the formation of a Climate Action Coordination Committee, a senior leadership group reporting to ADB’s Managing Director General that will oversee the planning, implementation, monitoring, and coordination of ADB’s actions to meet its climate goals. An Interdepartmental Working Group was also formed last year to adopt the TCFD recommendations and drive public reporting going forward.
The report includes preliminary financial disclosures on ADB’s exposure to climate-related opportunities and risks. It highlights various initiatives to position ADB as Asia and the Pacific’s climate bank and meet its climate finance targets. The report discloses ADB’s internal greenhouse gas emissions and includes a first heatmap of ADB’s portfolio of projects against a preliminary assessment of physical and carbon-transition risks. The report also details future activities, some of which are already underway, including the development of a climate change action plan.