Introduction In 2021 and 2022, the informed decisions. That is Intergovernmental Panel on Climate why the Group supports the Change (IPCC) published its sixth recommendations of the Task assessment report on climate change, Force on Climate-related Financial reiterating the emergency related to Disclosures (TCFD) and aims to The risk of Global impact of the increased anthropogenic greenhouse continue to develop its assessment business transition to a low carbon gas emissions. of the potential impact of climate as usual economy International institutions and change on its business, and its supervisors also warn about the businesses’ impact on a changing According to the IPCC**, the Achieving the transformation potential disruption and impact climate. current trajectory of economic of the global economy to activity will lead to an increase reduce greenhouse gas that climate change can have on In this report, we would like in temperature that will impact emissions and their effect the global economy. The European to present the key elements economic players in their on the climate will require Central Bank identifies climate change constituting our strategy operations and throughout transformation of production as a key risk driver for the euro area to manage climate-related their value chain. and consumption patterns. banking system and recommends risks and seize opportunities Anticipating the consequences Identifying the impact on this is considered in business risk resulting from the low an increased temperature our clients’ and investee management processes*. carbon transition of the could have on our businesses companies’ markets and their and our clients will improve business models will be crucial Rothschild & Co recognises that global economy, as well our resilience and our ability to in the coming decades. climate-related physical and as the key actions we service clients. transition risks have the potential have taken so far with the to destabilise the global economy, aim to mitigate these risks leading to unexpected market for our business and our changes. stakeholders. We believe that improved climate disclosure can lead to better * https://www.bankingsupervision.europa.eu/ ** AR6, IPCC, 2022