FY2020 TCFD Consortium
Member Survey Result

July 31, 2020
The TCFD Consortium

List of Questions
Question*This report extracts and presents some of the results of the survey research to member companies; extracted results arehighlighted in red. The entire survey result, as well as the result of the previous survey, is available on the members’ website.
Financial institutions

Non-financial institutions

Q1(Common)(For institutions that have become members since June 2019 and did not respond to the questionnaire last year) What motivated your institution to join the TCFD Consortium?
(You may choose up to three choices) (Note that choices are subtly different between non-financial and financial institutions)

Q2 -1(Common)

How much information about the status of your institution’s TCFD initiative is disclosed in the reports published externally such as annual reports, integrated reports,environmental reports, websites, etc? (choose one)Q2 -2(Common)(For institutions which choose a. or b. in question 2.1) What media does your institution utilize for disclosing information based on TCFD recommendations?
(multiple choice)Q2 -3(Common)(For institutions which choose c. or d. in question 2.1) Please choose the most likely option which indicates your institution’s expected time for TCFD disclosure.

Q2-4
for financial
institutions

Some financial institutions have started analyzing GHG emissions of their portfolio interms of conformity of the 2-degree target in the Paris Agreement; please select one
which best represents your institution’s status.

Q3(Common)

What are the benefits of supporting TCFD or disclosing information based on TCFD recommendations? Please choose options which indicates the merits your institutions
experienced. (multiple choice)

Q4

The TCFD Consortium published “the Guidance for Utilizing Climate-related Information
to Promote Green Investment (Green Investment Guidance)" in October 2019. Please Please share how often your institution discusses information on climate change withchoose options which represents your institution’s current status of utilization of thefinancial institutions including investors (engagement: choose one)
Green Investment Guidance. (multiple choice)

Q5(For institutions which choose options other than a. in question 4). In your institution’sWhat media does your institution use to obtain information disclosed by the companies dialogues with financial institutions (engagement), what specific information did
receiving investments and loans? (multiple choice)financial institutions place importance on, and what questions from financial
institutions have your institutions received. (multiple choice)

Q6

Please choose options which represents to your institution’s status of utilizing disclosed If your institution has any questions or requests regarding your engagement withinformation based on TCFD of client companies. (multiple choice)financial institutions, please describe it here.

Q7-1
for financial
institutions

Regarding engagement on climate change with your clients your institution isconducting, please indicate what points your institution pays attention to whenassessing disclosed information on climate change. (multiple choice)Q7-2
for financial
institutions

What does your institution see as issues and challenges in conducting engagementswith your clients on climate change? (multiple choice)Q8 for financial
Some countries are considering incorporating TCFD disclosure into listing rules or laws.
Some countries are considering incorporating TCFD disclosure into listing rules and laws.
institutions; Q7
What type of TCFD disclosure do your institution think is desirable? Please describe
for non-financial
Please describe your institution’s views on this.
yourinstitution’sviews
onthis.
institutions
Q9 for financial
At the TCFD Summit held in October last year, many member companies expressed their needs for having opportunities to study concrete examples and other companies’
institutions; Q8
initiatives on TCFD disclosure as a next topic discussed at the TCFD Consortium. Please choose options which represents your institution’s interest as topics which should be
for non-financial
discussed at the Consortium. (Multiple choices allowed)
institutions
Q10 for financial
institutions; Q9 Please indicate what type of activities your institution would be involved at the TCFD Consortium. Please describe any activities your institution thinks the TCFD Consortiumfor non-financial should undertake.
institutions

1

Summary of Survey Results⚫

Compared with the previous survey, conducted in June 2019, the number of institutions disclosing
information based on TCFD has increased for both non-financial and financial institutions (# ofinstitutions which chose a., “all items were disclosed”: 20 institutions → 50 institutions). It can beassumed from this fact that the content of disclosed information based on TCFD has been
improving (See page 4).

⚫

The survey result shows that the ratio of financial institutions and non-financial institutions
which have already disclosed information based on TCFD and will disclose such information inthis fiscal year will have reached around 80% (See page 7).

⚫

Also, the survey result shows that 80% of respondents indicated that they felt the benefits ofparticipating in TCFD initiative and disclosing such information like enabling to share theirclimate change risks internally (See page 8).

⚫

The survey result indicates that over 90% of respondents from non-financial institutions find thatclimate change risks have been getting more mentioned in dialogues with financial institutions(engagement). It also shows that the frequency of engagement has increased, with the ratio ofchoosing “having such dialogues at least five times a year” doubling from the previous survey (Seepage 11).
Response to the survey (As of May 29, 2020)

Total

Non-financial
institution

Financial institution

No. of member institutions

256 institutions

189 institutions

67 institutions

No. of respondents to the survey

176 institutions

124 institutions

52 institutions

Response rate

68.8%

65.6%

77.6%
2

Degree of information disclosure compatible with TCFD (Questions 2-1)⚫

How much information about the status of your institution’s TCFD initiative is disclosed in the reports publishedexternally such as annual reports, integrated reports, environmental reports, websites, etc? (choose one)Non-financial institutions(No. of Responses: 117 institutions)

Financial institutions(No. of Responses: 45 institutions)

Go to page 5

2%

All items (Governance, strategy,

Go to page 5

risk management, ｍetrics and

All items (Governance, strategy, risk
management, ｍetrics and targets)have been disclosed.

targets) have been disclosed.

24%

Some, but not all, items have been

29%

Some, but not all, items have been

36%

36%

disclosed.

disclosed.

Some or all items have been
considered but not disclosed yet in apublished report

Some or all items have been
considered but not disclosed yet in21%

In the process of consideringa published report

26%

16%

11%

In the process of considering

Go to page 6

Other

Go to page 6

Note: Industry associations are excluded from counting in “Other” for both non-financial institutions and financial institutions.

⚫ “All items have been disclosed” was the most common response for both non-financial institutions andfinancial institutions, regarding the current status of information disclosure based on TCFD recommendations.
⚫ The percentages of respondents selecting “all items disclosed” and “some, but not all, items
disclosed” together reached around 50 %: over 50% (55%) for non-financial institutions and over 40%(47%) for financial institutions, respectively.
3

Comparison of responses to the previous survey (Question 2-1)
Non-financial institution(No. of Respondents: 85 institutions last time,
117 institutions this time)
All items (Governance,34

strategy, risk management, ｍFinancial institution

Total(No. of Respondents: 34 institutions last time, 45
institutions this time)(No. of Respondents: 119 institutions last time,
162 institutions this time)targets) have been disclosed.

13

disclosed.

31

Some, but not all, items havebeen disclosed.

yet in the published reportbeen disclosed.

have been disclosed.

67in the published report14

considered but not disclosed

4

yet in the published report

This Year

⚫

⚫

040

44

considering

1510(Unit: No. of respondent)
Last Year18

In the process of

2330

31

Some or all items have been

In the process of considering

In the process of considering

20411628

1036

Some, but not all, items

considered but not disclosed yet

considered but not disclosed

20

been disclosed.

5Some or all items have been

24

Some or all items have been

ｍetrics and targets) have

7Some, but not all, items have3550

strategy, risk management,risk management, ｍetrics andetrics and targets) have been0(Unit: No. of respondent)

All items (Governance,16All items (Governance, strategy,This Year20380

10 20 30 40 50 60(Unit: No. of respondent)
Last Year

This Year

Last YearThe survey result shows that overall, the number of responding institutions that have disclosed all items(governance, strategy, risk management, metrics and targets) increased from the previous survey. This indicatesthat the content of information disclosure based on TCFD has been improved.
In addition, the survey shows that the number of responding organizations that have not disclosed information yet but
have started to consider it has increased.
4Media for implementing disclosure based on TCFD recommendations (Question 2-2)⚫

(For institutions which choose a. or b. in question 2-1) What media does your institution utilize for disclosing
information based on TCFD recommendations? (multiple choice)Non-financial institutions(No. of Responses: 64 institutions)
Securities report

Financial institutions(No. of Responses: 22 institutions)
Securities report

9Integrated report

441

Integrated report

13

Environmental

Environmental
Report/Sustainability Report

Corporate website

Other

38

Report/Sustainability Report

38

Corporate website

13

Other40

91020304050(No. of institutions)

702468101214(No. of institutions)⚫ The survey result shows that both non-financial and financial institutions conduct TCFD disclosures
primarily by using “Integrated report,” “Environmental Report / Sustainability Report,” and“Corporate website.”⚫ “Other” includes disclosure media such as TCFD reports and stewardship reports, etc.
5

TCFD Information Disclosure Schedule (Questions 2-3)⚫

(For institutions which choose c. or d. in question 2-1) Please choose the most likely option which indicates yourinstitution’s expected time for TCFD disclosure.

Non-financial institutions(No. of Responses: 52 institutions)

Financial institutions(No. of Responses: 23 institutions)this fiscal year

this fiscal year

26%31%

50%

next fiscal year

next fiscal year

4%
70%
TBD

19%

TBD

/ Other

Note: Industry associations are excluded from counting in “Other” for both non-financial institutions and financial institutions.

⚫ As for expected timeline for publishing TCFD disclosure by institutions which have not disclosed it yet,only half of non-financial institutions plan to disclose in “this fiscal year” while 70% of financial
institutions plan to disclose in “this fiscal year.”
6Institutions implementing TCFD-based disclosure during this fiscal year
Non-financial institutions(No. of Responses: 117 institutions)

Financial institutions(No. of Responses: 45 institutions)2%9%(1 institution)(10 institutions)

56%

22%

(65 institutions)(26 institutions)14%(16 institutions)

Already disclosed + to be disclosed this fiscal year
= 78% (91 institutions)

0%

20%

40%

60%

80%

47%

36%

16%

(22 institutions)(15 institutions)(6 institutions)

Already disclosed + to be disclosed this fiscal year
= 83% (37 institutions)

100%

0%

20%

40%

60%

80%

100%

Already disclosed

To be disclosed this fiscal year

Already disclosed

To be disclosed this fiscal year

Schedule for next fiscal year

TBD

Schedule for next fiscal year

TBD

Note: Industry associations are excluded from counting in “Other” for both non-financial institutions and financial institutions.

⚫ The survey result shows that the percentage of institutions that have already disclosed all four items(governance, strategy, risk management, metrics and targets) or “some, but not all items” inquestion 2-1, and those that will disclose it during this fiscal year in question 2-3, reachedaround 80% for both non-financial and financial institutions.
7Benefits related to TCFD approval and information disclosure (Question 3)⚫

What are the benefits of supporting TCFD or disclosing information based on TCFD recommendations? Pleasechoose options which indicates the merits your institutions experienced. (multiple choice)Financial institutions(No. of Responses: 52 institutions)Non-financial institutions(No. of Responses: 124 institutions)

Helped improving customer relationships

Helped improving customer relationships

awareness, enabling differention, etc.)

enabling differention, etc.)

Helped improving relationships with financial

Helped improving relationships with financial
institutions, including investors (increasinginstitutions (including investors) (Increasing73

dialogue, improving evaluation, promoting

understanding, enabling raising funds, etc.)
Helped to change and deepen internal

Helped changing and deepening internal strategy

47(business restructuring and risk management)

management)

84

climate-related risks and opportunities

8⚫

Helped increasing internal understanding on

1032

climate-related risks and opportunities

4

Nothing in particular

12Other⚫

18

strategy (Business restructuring and risk

Helped increasing internal understanding on(No. of institutions) 0

17

dialogue, improving evaluation, promoting

understanding, enabling raiing funds, etc.)

Nothing in particular

16(acquiring new customers, raissing

15(acquiring new customers, raising awareness,

206

Other

30

40

5060

70

8090

(No. of institutions)

05

1015

20

253035The survey shows that 80 % of both non-financial and financial institutions responded that they had somespecific benefits through supporting TCFD or disclosing information.
Both non-financial and financial institutions chose “Help increasing internal understanding on climate-relatedrisks and opportunities” as a benefit. For non-financial institutions, this is followed by “Helped improving
relationships with financial institutions, including investors.”.
8

Sources of information of clients (Q5 for financial institutions)⚫

What media does your institution use to obtain information disclosed by the companies receiving investments andloans? (multiple choice)Financial institutions(No. of Responses: 49 institutions)
Securities report

Environmental Report/Sustainability

36

Report/Sustainability Report
Corporate website

Other106918

Other

9084

Corporate website

33

ESG rating agencies, etc.

7374

Report41

External ESG Information Vendor:

8681

Integrated report

42

Environmental

6964

Securities report

34

Integrated report(No. of institutions)

The comparison between this and last year
(Last year: 42 institutions, This year: 49 institutions)33
0 10 20 30 40 50 60 70 80 90

203040Note1: Industry associations are excluded from “Other” in counting.

50This Year

Last Year

Units:%

Note 2: Different from the questionnaire last year, the questionnaire this year includes “ExternalESG Information Vendors” as a choice, so the comparison was made on the basis of excluding thischoice as shown in the graph above (right).

⚫ The most frequently used media by financial institutions to obtain disclosed information base on
TCFD from their clients was “Integrated report” and “corporate website.” “Other” includes “surveysand statistics conducted by other companies” and “PR magazine.”⚫ It is shown that the utilization of “integrated website” has increased in comparison with theprevious survey.
9Utilization of disclosed information based on TCFD (Q6 for financial institutions)⚫

Please choose options which represents to your institution’s status of utilizing disclosed information based on TCFD
of client companies. (multiple choice)Financial institutions (No. of Responses: 49 institutions)Utilizing it in investment and financing decision making (integration:18

corporate assessment, underwriting, etc.)
Utilising it in the process of selecting companies and porjects for9

investments (screening)
Utilizing it in dialogue with client companies (engagement)

32

Utilizing it to understand the climate change risks and GHG emissions

20of companies financed.
Under consideration on how to use it

11

Unused due to limited disclosure

7

Other

20

Note: Industry associations are excluded from “Other” in counting.

5101520253035(No. of institutions)⚫ The survey shows that over 60% of the responding financial institutions utilized information
disclosed based on TCFD in their engagement activities.
⚫ The next most common answers were “for integration activities (e.g. investment decisionmaking)” and “for understanding borrowers’ climate change risks and GHG emissions,” butonly about 40% of responding financial institutions use information for these purposes.
10Frequency of dialogue with financial institutions (Q4 for non-financial institutions)⚫

Please share how often your institution discusses information on climate change with financial institutions including
investors (engagement: choose one)Non-financial institutions(No. of Responses: 124 institutions)

Last Compare(Last year: 91 institutions, this year: 124 institutions)8

Never discussed

218%
8%

Never discussed

8

Once a year

12

Once a year

41%

Twice to four times aTwice to four times

43a year

42At least five times a41year
43%

At least five times ayearyear

22092％

This Year1020
Last Year

304050

Units:%⚫ The survey shows that over 90% of non-financial institution respondents answered that information
disclosure on climate change was a topic of conversation with financial institutions. In addition, morethan 40% of the respondents answered that they discussed this topic ”At least five times a year.”⚫ Compared to the previous survey, the percentage of responses to "At least five times a year" in particularincreased about 2 times, while the percentage of responses to "never talked about" halved from 20% toless than 10%, indicating that the frequency which climate change becomes a topic of dialogue withfinancial institutions has been increasing.
11

Disclosed information emphasized by financial institutions (Q5 for non-financial institutions)⚫

(For institutions which choose options other than a. in question 4). In your institution’s dialogues with financial
institutions (engagement), what specific information did financial institutions place importance on, and whatquestions from financial institutions have your institutions received. (multiple choice)Non-financial institutions (No. of Responses: 114 institutions)
Impact of climate change on your institution's business

79

Relation with your institution's environmental vision and mid- and72

long-term business strategies
Corporate governance and internal information sharing system

62

Commitment by management

53

Corporate-wide penetration of climate-related issues

16Your institution's actual and planned introduction of renewable

34

energyYour institution's environmental contribution through purchasing45

related products and servicesSetting targets relating to climate change

68

Other

19020406080100(No. of institutions)⚫

⚫

The top 3 choices relating to information disclosure on which financial institutions place importance at dialogues
with their clients were “Impact of climate change on your institution’s business,” “Relation with yourinstitution’s environmental vision and mid- and long-term business strategies” and “Setting targets relating toclimate change.”“Other” included topics including countermeasures for supply chain management.
12