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Advancing TCFD guidance on physical climate risks and opportunities

The European Bank for Reconstruction and Development (EBRD) become the first MDB to support the Task Force for Climate-related Financial Disclosures (TCFD), EBRD and the Global Centre of Excellence on Climate Adaptation (GCECA) have published a report providing recommendations for companies to integrate climate impacts into their investment decisions. The report titled ‘Advancing TCFD Guidance on Physical Climate Risks and Opportunities’ makes several recommendations to firms, including: perform forward-looking risk assessments and disclose material exposure to climate hazards such as flood risk, water stress, extreme heat, storms, and sea level rise; investigate benefits from investing in resilience and opportunities to provide new products and services in response to market shifts; and use scenario analysis and incorporate long-term climate uncertainties into business planning and strategic decisions.