This programme is one of the Eligible Programmes under the Pilot Green and Sustainable Finance Capacity Building Support Scheme, (https://greentalent.org.hk/).

ESG Workshop on TCFD Scenario Analysis for Climate Risks and Opportunities (WSHP24031301)

The Task Force on Climate-Related Financial Disclosures (TCFD) was created in 2015 by the Financial Stability Board (FSB) and provides recommendations to companies on how to properly manage the financial implications of climate change, including both physical and transitional risks and opportunities. The TCFD has since been widely adopted by companies and regulators, including the Hong Kong Stock Exchange (HKEx) who has recently proposed a rule requiring the mandatory disclosure of climate risks of listed companies by 2025, following the new standards announced by the International Sustainability Standards Board (ISSB), that are set to be released later in 2023.

TCFD consists of four pillars: Governance, Strategy, Risk Management, and Metrics and Targets. In this workshop, we will dive deeper into the Strategy pillar: what a company's climate strategy consists of, what scenario analysis is, why it is important, and how to conduct it.

Scenario analysis helps enable companies to understand their own climate risks and opportunities across different time horizons and different climate scenarios. For example, due to the higher predicted temperatures and weather patterns in a higher carbon scenario, a company's assets may need to be more resilient to certain extreme weather events. In contrast, due to a rapidly decarbonizing world, a company may need to invest in quickly adapting to the introduction of a carbon tax or new regulations.

This workshop has been created to assist members of HKICPA to strengthen their technical knowledge related to scenario analysis and the identification of climate-related risks and opportunities.

In this workshop, the speakers will cover:

• An introduction to the TCFD and ISSB
• What scenario analysis is and its' importance under the Strategy pillar of TCFD
• How to identify and choose climate scenarios, models, and time horizons
• Financial quantification of a company's risks and opportunities
• Practical insights into performing scenario analysis

In order to be eligible for reimbursement under the Scheme, participants must meet both of the following requirements:

1. Successfully pass the assessment, which includes multiple-choice questions, with a score of 70% or higher
2. Achieve an attendance of 80% or higher