In our first TCFD report we explored the range of impacts climate change would have for our business, both the risks and opportunities. We established a framework for applying the TCFD’s principles to PwC’s network, and lay the foundations for our leaders to begin the necessary journey of adapting our business - including our strategy, the services we offer our clients and the skills of our people - so that PwC remains a sustainable business in a 1.5° world.
You can read about our progress in full in our second set of disclosures in line with the recommendations of the Task Force on Climate-related Financial Disclosures.
Download the full report
The TCFD was set up in 2015 by the Financial Stability Board, at the request of G20 Finance Ministers and Central Bank Governors. Its mission is to help investors, lenders and insurance underwriters understand climate-related risks and opportunities, and their impact on businesses.
We’ve supported the TCFD since it launched its recommendations in 2017 and have been members of the Task force since 2016. We’ve provided data and analytics using AI for the annual TCFD Status Reports, and we sit on its Metrics and Targets working group.
As part of our contribution to improving TCFD market capacity, we've supported the World Business Council for Sustainable Development (WBCSD) Preparers Forum, which has produced guidance for six sectors. We’ve supported three key projects – the Energy System Reference Scenarios project to improve the consistency and compatibility of climate scenarios, the recent Demystifying Scenarios report¹ and we’re now working on TCFD Readiness and Food & Land Use Reference Scenarios.
¹World Business Council for Sustainable Development (WBCSD) July, 2022. Demystifying Scenarios report.
Our original scenario analysis continues to guide our strategy and business responses to the risks and opportunities that climate change will pose for our business.
The major strategic implications for our business arising from climate change are captured below. You can find more details about our methodology, approach, scenarios and impacts framework in our full report.
(well below 2°C)
No mitigation scenario
|This scenario drives a greater level of transition impacts given the dominance of policy changes and disruption as the economy transitions to a low carbon world.||There are a number of risks and opportunities, which will arise regardless of the climate scenario.||This scenario drives a greater level of physical impacts given the dominance of climate and weather related events, which are likely to take place.|
It’s clear that weather related events which have the potential to disrupt our business will continue to occur with increasing frequency and severity over the coming years and decades. It is key to make sure that we have a good understanding of how, when and where these events may be of greatest significance to our business. This will inform how we should plan to respond, and how we use the analysis to inform strategic business decisions.
The steps for undertaking this assessment are summarised in the following table and are underpinned by a detailed analysis of data related to various climate hazards for each of our office locations.
Our approach to physical risk analysis
|1||Identify key physical locations in the value chain. For PwC, this is mainly our office locations.|
Overlay climate hazards based on defined climate scenarios, to understand how those hazards might apply to the key locations identified (see maps below).
Decide which locations need further analysis based on a business assessment, including:
|4||Using the analysis, decide which locations may be materially vulnerable and need more attention and response.|
|5||Identify business decisions that will be needed, including mitigation measures, recovery plans, alternate locations for certain functions or activities, etc. and develop action plans to address these.|
The maps below show PwC office locations with more than 1,000 employees and how the hazard profile for heat is expected to change between 2020 and 2050 for these locations under a ‘no mitigation’ >4°C scenario (SSP5-8.5¹). You can explore the data via our interactive map.
It is important to emphasise the data only represents the potential severity level of a hazard for a location. It does not reflect the vulnerability of that location to the hazard. The data therefore does not constitute a business risk assessment. We are using this analysis to inform our risk assessments and business decisions, and we recommend that other businesses undertake similar assessments.
¹SSP stands for Shared Socioeconomic Pathways
Data source: Jupiter ClimateScore™ Global, 2022
In September 2020 we announced a worldwide commitment to reach net zero GHG emissions by 2030. Our net zero commitment is underpinned by a science-based target in line with a 1.5 degree scenario to prevent the worst impacts of climate change, as set out in the Paris Agreement. In July 2021, our emission reduction targets were independently validated by the Science Based Targets initiative (SBTi).
You can read more about our commitment and how we are progressing towards our targets here, or download our full climate-related disclosures report below.