Climate Disclosures

Background

In 2017, the Taskforce on Climate-related Financial Disclosures (TCFD) released climate-related financial reporting recommendations designed to help ensure that the effects of climate change are routinely considered in business, investment, lending and insurance underwriting decisions.  

Because climate change has a significant impact on the long-term value of a company, investors need to understand a company’s potential climate-related risks to understand investment risks. In other words, climate change and a company’s financial health are inextricably connected. 

As of the time of writing, all publicly listed companies in 35 markets including the UK, EU, New Zealand and Canada are mandated to disclose climate-related information alongside their annual financial disclosures.  

thl's Climated-related Disclosures

FY23 was thl’s second year of reporting our climate-related disclosures.  

These disclosures are aligned with External Reporting Board (XRB) / Te Kāwai Ārahi Pūrongo Mōwaho standard NZ CS 1. NZ CS 1 was developed in response to the TCFD framework and adjusted to take account of the International Sustainability Standards Board (ISSB) development of sustainability reporting standards.

thl’s climate-related disclosures are structured by the four thematic areas:

Please see below links for our disclosures in each area.

Our Climate Risks and Opportunities (CR&O)

In 2023, we updated our Climate Risks and Opportunities (CR&O) and the scenarios we use to reflect our global business and the new disclosure standard NZ CS 1.

There are two categories of climate risks: transition risks - risks related to the transition to a lower-carbon economy; and physical risks - risks related to the physical impacts of climate change.

A high proportion of our business is exposed to transition risks, in particular the need to decarbonise our fleet. A low to moderate portion of our business is exposed to physical risks, including the impacts of extreme weather events.

Quantitative metrics for our climate disclosures will be developed in FY24 aligned with industry metrics. These will be informed by qualitative metrics that are already used within our Future-Fit Business Benchmark.

To understand our CR&O we used two methods to identify and assess scope, size, and impact: a Climate Scenario Analysis and our first Future Fleet Global Scan.

Our priority CR&O, shown above, were assessed and reviewed through our annual scenario analysis and materiality exercise. In June 2023, our Executive-level RIC members and other internal stakeholders attended climate scenario analysis workshops to re-assess and re-prioritise thl’s priority CR&O and test these against three updated climate scenarios. Our climate-related risks are managed through the ERM framework, with regular risks reviews, quarterly RIC and Regional Risk Network meetings and quarterly ARC meetings. This ensures our climate-related risks are properly managed at governance, management and operational levels. Opportunities are managed through our Transformation and Future Fleet workstreams.

Governance

(7-9)

View Disclosures

Strategy

(11-16)

View Disclosures

Risk Management

(18-19)

View Disclosures

Metrics & Targets

(21-26)

View Disclosures
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