Climate-Related Financial Risks and Opportunities

Through climate risk and opportunity reporting, organizations can report to the public how they identify, assess, and manage climate-related risks (physical and transition) and opportunities. This type of reporting allows organizations to report:

• Their governance structure for climate-related risks and opportunities.
• Actual and potential impacts of climate-related risks and opportunities on their strategy, businesses, and financial planning.
• Their methods to identify, assess, and manage climate-related risks.
• The metrics and targets they use to assess and manage relevant climate-related risks and opportunities.

Explore the following to learn more about reporting climate risks and opportunities:

• How climate risks and opportunities are defined.
• Steps to discover, assess, report, and manage climate risks and opportunities.
• Market developments around climate-related financial disclosures.
• EPA and other relevant resources.

EPA's guidance is aligned with International Sustainability Standards Board (ISSB) Standards IFRS S1-General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2-Climate-related Disclosures (which both incorporate recommendations from the Task Force on Climate-related Financial Disclosures (TCFD) and the Greenhouse Gas (GHG) Protocol. EPA has developed resources to help organizations conduct, assess, and reduce their scope 1, 2, and 3 GHG emissions – a key step to inform transition risk and opportunity assessments.