Sustainability

Task Force on Climate-Related Financial Disclosures

ATCO has always been a proponent of reporting core non-financial information and indicators to provide meaningful, efficient and transparent disclosures in priority areas for customers of our sustainability reporting (i.e. investors, business partners, customers, communities, Indigenous groups, employees, and governments).

In 2021, ATCO expanded alignment to the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) recommendations. We have provided detail and available mapping to existing disclosures below, and plan to continue to evolve our external disclosure around climate-related risks and opportunities in alignment with the TCFD recommendations. 

For more information on the TCFD please visit www.fsb-tcfd.org.

  • Governance
    Describe the board’s oversight of climate-related risks and opportunities.

    The board and committees of the board provide oversight on material sustainability topics, including climate-related risks and opportunities. Our Sustainability Report (p. 37-39) describes the board’s oversight of climate-related risks and opportunities, as well as the roles and responsibilities of the board committees. The Management Proxy Circular (p. 26-34) provides more information on our overall approach to governance. The board fully endorses our strategic 2030 ESG Targets and commitment to net-zero emissions by 2050. 

    Describe management’s role in assessing and managing risks and opportunities.

    Management assesses material climate-related risks and opportunities to determine the best course of action. Our Sustainability Report (p. 37-39) describes management’s role in assessing and managing climate-related risks and opportunities. The Management Proxy Circular (p. 26-34) provides more information on our overall approach to governance.

  • Strategy
    Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.

    Our climate-related risks and opportunities include policy/regulatory, market, technology, reputational, and physical risks. The Management’s Discussion & Analysis (p. 5-11), Management’s Discussion & Analysis (p. 44-48), Management’s Discussion & Analysis (p. 61-69) and Sustainability Report (p. 16-20) describe the material climate-related risks and opportunities we have identified.

    Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.

    Sustainability is interwoven into our businesses, strategy, and planning. Our Sustainability Report (p. 6) provides an overview of how climate-related risks and opportunities are integrated throughout the organization. The Management’s Discussion & Analysis (p. 4), Management’s Discussion & Analysis (p. 5-11), Management’s Discussion & Analysis (p. 44-48), Management’s Discussion & Analysis (p. 61-69) and Sustainability Report (p. 16-20) provide more information on how we incorporate climate-related risks and opportunities into our businesses, strategy, and planning.

    Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.

    In 2021 we conducted a significant decarbonization modelling project for our energy businesses, which highlighted the resilience of our business model and strategy to decarbonize. The Management’s Discussion & Analysis (p. 44-48) and Sustainability Report (p. 16-20) provide more information on our climate-related strategies and resiliency.

  • Risk Management
    Describe the organization’s processes for identifying and assessing climate-related risks.

    Our enterprise risk management process allows us to identify and assess risks by both severity of impact and probability of occurrence, including climate-related risks. The Management’s Discussion & Analysis (p. 44-48), Management’s Discussion & Analysis (p. 61-69), Sustainability Report (p. 16-20) and Sustainability Report (p. 37-39) provide more information on how we identify and assess climate-related risks.

    Describe the organization’s processes for managing climate-related risks.

    Our enterprise risk management process allows us to identify and assess risks by both severity of impact and probability of occurrence, including climate-related risks. The Management’s Discussion & Analysis (p. 44-48), Management’s Discussion & Analysis (p. 61-69), Sustainability Report (p. 16-20) and Sustainability Report (p. 37-39) provide more information on how we manage climate-related risks. 

    Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management.

    Our enterprise risk management process allows us to identify and assess risks by both severity of impact and probability of occurrence, including climate-related risks. The Management’s Discussion & Analysis (p. 44-48), Management’s Discussion & Analysis (p. 61-69), Sustainability Report (p. 16-20) and Sustainability Report (p. 37-39) provide more information on how identifying, assessing, and managing climate-related risks are integrated into our overall risk management processes.

  • Metrics & Targets
    Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.

    The ATCO Performance Summary (p. 43-48) outlines the metrics we use and our performance. 

    Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks

    The ATCO Performance Summary (p. 43-48) outlines our Scope 1, Scope 2, and Scope 3 GHG emissions. 

    Our Sustainability Report (p. 16-20) provides more information on our Scope 1, Scope 2, and Scope 3 GHG emissions.

    Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets.

    In January 2022, we published a News Release announcing an initial set of strategic 2030 ESG Targets as well as a commitment to net-zero emissions by 2050. The Management’s Discussion & Analysis (p. 4) provides more information on how we plan to achieve these targets, and the ‘Scorecard’ section of the Management’s Discussion & Analysis (p. 15-22) outlines our strategic priorities and progress towards targets. Our Sustainability Report (p. 8-9, 11, 12, 13, 17, 18, 28, 30, 36, 38) provides more detailed information on our ESG Targets and net-zero commitment, and the ATCO Performance Summary (p. 43-48) outlines our performance towards targets.