The world of ESG reporting is moving faster than ever. The European Union is moving fast to update the Non-Financial Reporting Directive (NFRD) in 2021, the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) are reaching a critical mass and the often confusing group of reporting initiatives have committed to work together towards a comprehensive reporting landscape, with financial heavy-hitters such as the International Organization of Securities Commissions (IOSCO) and the International Accounting Standards Board (IASB) stepping into the game.

1. December 20 | Tweet @CDSBGlobal
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The state of the market –
Is reporting actually improving?
Nontokozo Khumalo,
Corporate Engagement Manager, CDSB

7. December 20 | Tweet @CDSBGlobal
50 companies across 10 jurisdictions
and 10 sectors reviewed
3
NFRD content categories
and TCFD
Mainstream reports
US$ 3.5 trillion market
capitalisation
Nordic TCFD Reporting Summit
Qualitative and quantitative

8. December 20 | Tweet @CDSBGlobal
The state of disclosure in 2020
4
Top 3 Strengths
• Policies and Due Diligence
• Business Model
• KPIs
Top 3 Weaknesses
• TCFD
• Principal Risks
• Materiality
Despite the release of climate-related disclosure guidelines and 68% of
companies referencing TCFD, only 16% demonstrated reasonable alignment.
Progress is still needed as companies are not fully adopting TCFD
Nordic TCFD Reporting Summit

9. December 20 | Tweet @CDSBGlobal
Governance
5
Most companies disclosed on both board and management-level responsibilities
but there are inconsistencies.
• Most companies address
board and management-level
accountabilities, with some
inconsistencies;
• Climate-related
accountabilities often implied,
not explicit;
• Link to wider arrangements
such as risk management
processes is not always clear.
RSG M
Nordic TCFD Reporting Summit

10. December 20 | Tweet @CDSBGlobal
Nordics
6
Nordic companies disclosure of a combination of board and management-level
responsibilities is lower than EU average.
Nordic companies disclosure of board
and management-level responsibilities
below EU average with a higher
proportion disclosing only the board-
level responsibilities.
RSG M
Nordic TCFD Reporting Summit

11. December 20 | Tweet @CDSBGlobal
Strategy
7
Improvement in considering transition and physical risks but disclosure on strategic
impact assessment of climate scenarios remains low.
• Majority disclosed risks and
increased evidence of
consideration of both physical
and transition risks;
• Limited disclosure of
business-specific impacts on
strategy or time horizons;
• Nordics disclosure below EU
average with 57% disclosing
environmental or climate risks
versus 86%.
MRSG
Nordic TCFD Reporting Summit

12. December 20 | Tweet @CDSBGlobal
Nordics
8
Strategy resilience to scenarios disclosure in line with EU average of limited
disclosure, often with high-level reference only.
Limited disclosure with smaller
proportion of Nordic companies able to
reach a conclusion on resilience using
scenario analysis when compared to
the EU average, 18%.
MRSG
Nordic TCFD Reporting Summit

13. December 20 | Tweet @CDSBGlobal
Risk management
9
Integration of climate risks into wider risk management processes is often implied
rather than explicitly stated.
• More than a third of the
companies not disclosing
management actions for
climate risks;
• Integration of climate change
into wider risk management
processes increased but
often no explicit mention.
MRSG
Nordic TCFD Reporting Summit

14. December 20 | Tweet @CDSBGlobal
Nordics
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Large gap between Nordic company risk disclosures and EU average.
MRSG
Nordic TCFD Reporting Summit

15. December 20 | Tweet @CDSBGlobal
Metrics and Targets
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• Despite improved GHG
emissions disclosure, other
issues such as biodiversity are
not reflecting;
• Companies are not providing
climate-related financial
metrics of relevance to
investors.
G MRS
A strong area of disclosure but certain metrics that would enhance decision-
usefulness are still not present.
Nordic TCFD Reporting Summit

16. December 20 | Tweet @CDSBGlobal
cdsb.net/NFR2020

17. December 20 | Tweet @CDSBGlobal
Enhanced reporting Europe campaign
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Access regular support from
experts in climate and
environmental mainstream
disclosure.
Access to experts
Improve climate and
environmental disclosure using
CDSB feedback.
Understand the policy context
and improve preparedness for
regulation and application.
Disclosure feedback Policy briefings
Learn from peers and experts
through country and region-
specific workshops.
Obtain resources directly post-
launch and notifications on
upcoming publications.
Resources Internal support
Receive tailored briefings for
reporting teams focused on
sustainability and/or finance
functions.
Workshops
https://www.cdsb.net/what-we-do/enhanced-reporting-europe
Nordic TCFD Reporting Summit

18. December 20 | Tweet @CDSBGlobal
CDSB resources
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tcfdhub.orgcdsb.net/publications
Nordic TCFD Reporting Summit

19. December 20 | Tweet @CDSBGlobal
Thank you!
With the contribution of the
LIFE Programme of the
European Union.
Follow us on social media
Subscribe to our newsletter
www.cdsb.net/newsletter
Contact
Nontokozo Khumalo
Corporate Engagement Manager
nontokozo.khumalo@cdsb.net

20. TCFD response
& development
Luke Blower, Associate,
Redefining Value, WBCSD

21. WBCSD is coordinating Preparer Forums for
priority non-financial sectors at the request of the
TCFD – Oil & Gas, Electric Utilities, Chemicals,
Construction & Building Materials, Food,
Agriculture & Forest products and Autos.
Forums seek to assess the current state of
disclosure, identify effective practices, common
challenges, understand user needs, outline
guidelines and disclosure developments over
time.
Communicating responses to climate
change and the energy transition.
Climate-related financial
disclosures allow
companies to disclose
risks and opportunities
associated with climate
change supporting
informed investment,
lending, and underwriting
decisions.
WBCSD TCFD Preparer Forums

22. Electric Utilities
Oil and Gas
Chemicals
TCFD Preparer Forum members

23. Construction & building materials
TCFD Preparer Forum members
Food, Agriculture & Forest Products
Autos

24. In-depth description of climate-related financial disclosure among leading
companies, with suggested developments and discussion of challenges.
Highlights include:
● Integration of climate-related risks into enterprise risk management
and governance processes
● Evidence of strategic responses to the low-carbon transition and
pursuit of opportunities
● Climate-related business resilience reflecting shocks and stressors,
effects, response & transformation
● Illustrative scenario analysis processes and key quantitative
parameters and assumptions
● Value-chain and sectoral insights on climate-related risks and
opportunities
● Illustrative climate-related metrics, progressing from operational to
financial
● User perspectives from credit and equity analysts
TCFD Preparer Forum outputs

26. INTERNAL
1.6
9.9
2019
Under construction Installed
22
Ørsted develops energy systems that are green, independent and economically viable
– Global leader in offshore wind
– Develop, construct, own and
operate offshore wind farms
– Ambition of ~15 GW installed
capacity by 2025
– Route-to-market for own and
customers’ generation portfolio
– Market trading operations
– Convert CHPs to sustainable
biomass and phase out coal by 2023
– Recent divestment of Radius, B2C
and City Light
– US onshore wind portfolio
– Develop, construct, own and operate
onshore wind farms
– Energy storage solutions and solar
OnshoreOffshore Markets & Bioenergy
9.9
3.0
6.8
H1 2020
Segments
Capacity
GW
2.1
0.5
1.6
H1 2020 H1 2020
2.1

27. INTERNAL
23
Since 2007, Ørsted has transformed from a black to a green energy company with
strong financial results
Business transformation
EBITDA, DKKbn, %
CO2 reduction
g CO2e/kWh
2020
guidance
2007
7%
16-17
98%
9.6
424
64
2007 H1 2020
-85%
6.0
2007
10.8
H1 2020
Profitability
ROCE, %
Internationalisation
Share of EBITDA outside DK
12%
91%
2007 2020
guidance
Share of renewables

29. INTERNAL
We have assessed the impact that climate
change can have on the resilience of our
business by implementing the TCFD
recommendations in our two latest annual
reports for 2018 and 2019.
Ørsted included as case example in TCFD
Status Report from June 2019 and on the TCFD
Knowledge Hub in 2020.

30. INTERNAL
TCFD implementation roadmap in Ørsted – to date
Implementation of climate-related financial disclosures Outcomes
2019
TCFD gap analysis and
endorsement
– Business model centred
around climate change
=> already TCFD-aligned
to a large extent
– Science-based GHG
reduction target
– Official TCFD
endorsement
Annual report and
climate KPIs
– Established internal
working group
– Implemented low-hanging
fruits in annual report
– Established CEO and
CFO climate KPIs
2020
Climate scenario
analysis
– Most significant gap
– Focus: Physical climate
risks in offshore wind
– Two scenarios: 1.5-2°C
and 3-4°C
– Interviews and workshop
Improved internal
understanding of
climate-related risks and
opportunities
Decision-useful climate-
related information
provided to investors
2018
Internal stakeholders
- Sustainability dept.
- Annual report dept.
(Finance)
- Top mgt. approval
Internal stakeholders
- Sustainability, IR, Finance,
Risk dept., Strategy, ESG
Accounting
- Top mgt. and Board
approval
Internal stakeholders
- Offshore wind business
- Sustainability (project
management)
- Top mgt. approval
Strategic carbon neutral
targets
– Become a carbon neutral
company (scope 1 and
2) by 2025
– Achieve a carbon neutral
footprint (scope 1-3) by
2040
– Launched supply chain
decarbonization
programme
Internal stakeholders
- Strategy, Sustainability,
ESG Accounting,
Procurement
- Top mgt.

31. INTERNAL
5 key things we learned from TCFD implementation and scenario analysis
1. Use TCFD to provoke internal thinking and improve external reporting
2. Realistic scoping is key
3. Bring experts together from across your business
4. Work constructively with the best available science
5. Don’t wait for perfection. Get started.

32. 2020-11-24Nordic TCFD reporting summit 2020 28
On the journey towards a carbon-free future
Emilia Hagberg,
Senior Sustainability Manager, Skanska Group

33. Our business streamsLocal presence, global strength
USA Sweden
Finland
Denmark
United Kingdom Poland
Slovakia
Hungary
Czech
Republic
Romania
Norway
42%
40%
18%
2020-11-24Nordic TCFD reporting summit 2020 29

34. 2020-11-24Nordic TCFD reporting summit 2020 30
We are committed to reaching net-zero
Today
-28%* -50% 0
2030 2045
*Within our own operations.

35. The value chain in focus
2020-11-24 31Nordic TCFD reporting summit 2020

36. 2020-11-24 32Nordic TCFD reporting summit 2020

37. Åparken skatepark,
Sundsvall, Sweden
2020-11-24 33
Electric Site
Gothenburg, Sweden
Making better mixes:
Low-carbon and circular concrete
Cutting carbon emission with AICustomer focus:
The world´s northern most energy-
positive building
Powerhouse Brattørkaia
Trondheim, Norway
Nordic TCFD reporting summit 2020

38. Nordic TCFD reporting summit 2020
Implementing TCFD
• Climate target
• Follow up performance by Board
• Climate action plans
• Business opportunities
• Climate risks in Enterprise Risk
Management
• Climate in financial analysis
• Economic incentives

39. 2020-11-24Nordic TCFD reporting summit 2020 35
Thank you!

40. Renewable
materials in a
circular bioeconomy
Roy Antink, SVP, International Policy
Coordination, Sustainability, Stora Enso

41. Fossil carbon emissions and resilience to global warming
Aligned with the TCFD
• Initial response to the TCFD recommendations
• Published for 2018 and 2019
• Provides a summary of:
− Governance
− Strategy
− Risk and Opportunity Management
− Metrics and target
− Highlights
− External Recognition
37
https://www.storaenso.com/en/sustainability/environmental/carbon-
dioxide/fossil-carbon-emissions-summary

42. Climate-related financial disclosures (TCFD Index)
• Established internal cross functional
TCFD coordination group and a
TCFD Index
• Our TCFD Index is located in the
report of the Board of Directors
(Financials 2019)
• Lists our disclosures with reference
to TCFD recommendations, and
refers to the locations where these
issues are addressed in our annual
report.
• The location references are
complemented in the index with
additional information, as necessary
38

43. Substituting materials from finite resources
is our key competitive advantage
Our products substitute
fossil-based products, saving
20 Mt CO2
Our forests are carbon
neutral and absorb
3 Mt CO2
Resource efficient value chain,
emissions:
11 Mt CO2
Our total
climate benefit:
12
Mt CO2

44. Describing the opportunity
40

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