Taskforce for Climate-related Financial Disclosures (TCFD) and Climate-related Risks
This year, we commenced our journey to align ourselves with the recommendations of the TCFD. We have focused initially on assessing our material physical and transitional risks and using these to inform our 2050 Clarion climate scenarios. We will then use these scenarios to understand our climate-related risks and opportunities in a climate changed future.
Our executive and sustainability teams collaborated with external specialist consultants to develop, assess, and endorse three climate-related scenarios which are based on the latest climate science. The scenarios, which each present a plausible view of the world in 2050, are considered the most relevant to assess the resilience of our business and corporate strategy.
We have also started mapping our physical risks geographically across our portfolio of homes, identifying how in different climate scenarios our homes and our residents could be impacted by eight different climate risk hazards.
We will continually improve our disclosures in the climate-related risk space over time, sharing detail here of our Clarion Climate Scenarios as we publish them.
Below 2 °C warming
In response to evident climate change, individuals and the community lead a shift towards more sustainable lifestyles, reduced consumption, and improved wellbeing.
Individuals hold companies and governments to higher standards ,resulting in stronger social and climate policies along with rapid coordinated decarbonisation efforts.
Strong global collaboration sees emphasis placed on global equality and wellbeing over continued economic growth.
Between 2 and 3 C warming
With no dramatic change to our current lifestyles or value system, the world continues to make slow and deliberate progress towards decarbonisation.
A clear policy context along with stable carbon pricing creates a confident market where investing in renewable energy, low carbon technology and social housing is more viable. However, the slow transition results in a more unstable climate as temperatures exceed safe limits.
The population continues to grow and become more urbanised, and unfettered consumer appetites drive consistent economic growth.
Above 3 °C warming
Extreme weather events become more frequent and severe which, along with a growing global population and pressure on energy, food and natural resources, results in significant forced migration and climate refugees.
In response, there is an increase in nationalism and protectionism as countries restrict borders, limit trade, and increase conflict over resources.
Investment and policies favour national short-term interests, resulting in fossil fuel dependent energy systems and increased global and national inequality.
Building resilience into our new homes
We compete detailed risk assessments on all new homes to guard against the risk of overheating and flooding – some of the major impacts of climate change. These assessments provide us with the data we need to decide the best forms of mitigation to reduce the risk. Where homes are positioned in relation to the sun, the layout of windows, levels of shading, and insulation are among the things that are looked at.
We are embedding our climate-related risk analysis into our assessments of new projects to ensure we're building in resilience into the future.
Our residents are seeing the benefits in a changing climate
Our major programme to retrofit our existing homes and make them fit for the future saw hundreds of residents benefit from new energy efficient features. These included things like triple-glazed windows, external wall insulation, centralised mechanical ventilation systems, and air source heat pumps.
The benefits to residents who took part in this programme through our SHDF Demonstrator and Wave 1 phases were particularly apparent through the summer heatwave of 2022.
“Since this work has been done it has made such a difference. The house is so much warmer, and also in the summer months when it was really hot, it stayed cool. Normally I'd have a fan in this front room – I didn't need it because the room was nice and cool. I've noticed a big difference in my energy bills.”
Viv, Clarion resident in Tonbridge