ADB to ‘mitigate’ climate impact

THE Asian Development Bank (ADB) on Wednesday said it would continue its support in mitigating the climate change-related crisis in the Asia-Pacific region.

The regional development bank made the commitment after it released its inaugural climate-related financial disclosures report outlining the progress in implementing the Task Force on Climate-related Financial Disclosure (TCFD) recommendations.

ADB also expressed its commitment to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty.

“The release of this [Climate-related Financial Disclosures 2021] report is a milestone for ADB and underscores the importance of climate change to the development agenda,” said ADB President Masatsugu Asakawa.

“ADB is Asia and the Pacific’s climate bank, and the TCFD report is one more step in our commitment in the battle against climate change,” he added.

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Asakawa said the report underscored ADB’s commitment to strengthening climate action and business operations while increasing transparency on ADB’s exposure to climate-related opportunities and risks through enhanced disclosures.

The new report discloses ADB’s internal greenhouse gas emissions and includes a first heatmap of ADB’s portfolio of projects against a preliminary assessment of physical and carbon-transition risks.

The report also details future activities, some of which are already underway, including developing a climate change action plan.

ADB declared its support for the TCFD framework last year. The Financial Stability Board also launched the TCFD in 2015 to enhance and expand reporting of financial data connected to climate change for organizations’ consistent use in informing stakeholders.

The TCFD released a series of recommendations in 2017 that are based on four pillars — governance, strategy, risk management, and measurements and targets — and are regarded as an international standard for financial disclosure related to climate change.

Fulfilling the disclosure requirements under the TCFD framework allows ADB to communicate to stakeholders that it is firmly committed to integrating climate risk management and opportunity assessments into its operations.

It also illustrates ADB’s support of climate risk disclosure among multilateral development banks and across the world’s corporate and financial sectors.