TCFD Processing

TCFD Enrichment

In this section, the main enrichment of TCFD data set is performed. The Join function uses the TCFD Data Model Table as input, and categorizes the business activities of each issuer by the following:

• Level/type of low carbon transition degree (LCTD)

• Climate solution exposure (CSE)

• Emission reduction target (ERT)

• Climate regulation by region (CRR)

• Future market demand (FMD)

• Technology risk exposure (TRE)

• Board's oversight (BOS)

• Fossil fuel exposure

Then, it calculates the aggregated Attribute value. The result from this function is used for the TCFD report.

Calculate Potential Carbon Emission

This Calculation function uses data from the TCFD Enrichment function as input. It estimates the potential emission of carbon that is currently stored in fossil fuels and is expected to be released in the process of combustion when companies conduct energy generation activities.

The formula presented below is referenced to the World Resource Institute and can be replaced or adjusted easily.

Where H is the amount of burned fossil fuel of different type i, OF is the oxidation fraction, EF is the emission factor, DF is the destruction factor, and GWP_CH4 is the global warming potential for CH₄.

Calculate TCFD Metrics

This Calculation function uses data from the Evaluate Impacts and Scores function as input, specifically, the financed carbon emission on asset level as well as total portfolio value and revenue associated with portfolio. This function calculates the portfolio level weighted average carbon intensity, carbon footprint and revenue-based carbon intensity in line with TCFD recommendation.