Elkem launches first TCFD report on climate risks and opportunities
Oslo, Sweden – Elkem has launched its first TCFD report as an initiative to address the potential financial impact of climate risks and opportunities. Elkem has also received a new, strong score from CDP substantiating Elkem’s work as a global leader on climate change action.
The Task Force on Climate-related Financial Disclosures (TCFD) was established in 2015, and has quickly become one of the most widely used frameworks for reporting on climate-related financial risks and opportunities.
“Elkem aims to be part of the solution to combat climate change – and to be one of the winners in the green transition. Our mission is to provide advanced material solutions shaping a better and more sustainable future,” says Elkem’s CEO, Helge Aasen.
He adds: “Reporting according to the TCFD recommendations builds internal and external understanding and capabilities to support the green transition, promote transparency, and contribute to climate action. The implementation of the TCFD framework is part of Elkem’s process to continuously improve our sustainability activities and ESG KPIs”.
In 2017, the TCFD released recommendations to help market participants address the financial impact of climate change. The recommendations are structured around four thematic areas that represent core elements of how organisations operate: governance, strategy, risk management, and metrics and targets. By implementing the TCFD framework into the risk management system, Elkem plans to report on the recommendations and the key developments on an annual basis.
In 2021 Elkem has matured the internal use of the TCFD framework. The climate risk implementation was a key input to the climate roadmap towards 2031 and 2050. The Elkem’s climate roadmap is a way to show the response to the climate change landscape identified for Elkem – in 2021 and going forward.
Elkem has also received its 2021 rating from CDP, an international non-profit climate research organization. Elkem has received an A- score on climate change and a B- score on water security.
“The A- rating from CDP on climate is another strong confirmation of Elkem’s position as one of the world’s leading companies in the environmentally responsible manufacture of metals and materials. It also serves as an inspiration to continue improving further. We continue to step up our efforts as we position for the future,” Aasen commented.
In October, Elkem launched a climate roadmap detailing how the company plans to develop its business in line with the aim of the Paris agreement. The company aims to reduce its total fossil CO2 emissions with 28% from 2020-31 while growing its supplies to the green transition – thereby delivering a 39% improvement of its product carbon footprint in the same period. Elkem’s long-term goal is net zero emissions by 2050.