Task Force on Climate-Related Financial Disclosures

We conducted a climate scenario analysis aligned with the Task Force on Climate-Related Financial Disclosures (TCFD) and continue to assess and manage our climate-related risks and opportunities. These steps are important signals of our ongoing commitment to transparency and disclosure.

In 2020, we announced our intent to align our climate-related disclosures with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). By aligning with the TCFD recommendations, we can expand our existing risk management practices to incorporate the analysis of medium (2025 – 2030) to longer-term (2031 – 2050) climate-related risks and opportunities under various climate scenarios, which better positions us to manage future risks as well as capture new business opportunities.

In supporting the initiative, Cabot is committed to the voluntary disclosure of transparent reporting and the disclosure of all relevant information on risks and opportunities related to climate change, as indicated in the TCFD recommendations. To this end, Cabot publicly reports this information both within the annual Sustainability Report and through the CDP Climate Change and Water Security programs.

Our Approach to Evaluating and Implementing TCFD Recommendations

We have taken a phased approach to aligning our actions with the recommendations under TCFD. Through this approach, we strive to build more resilient climate and business strategies that meet our business needs and support transparent disclosures for our stakeholders.

To support this initiative, a cross-functional working group of internal stakeholders within Cabot was established and key areas of focus included:

• Conducting a peer benchmarking and gap analysis of our existing climate-related disclosures against the TCFD recommendations;
• Refreshing and categorizing Cabot’s list of climate risks and opportunities;
• Reviewing publicly available and widely accepted climate scenarios to identify the most appropriate options for the climate scenario analysis; 
• Qualitatively assessing potential impacts of the climate risks and opportunities identified; and
• Developing and ranking a comprehensive list of potential climate risks and opportunities relevant to our businesses. 

The key risks and opportunities were prioritized and categorized according to the TCFD guidance, as illustrated in our TCFD Climate Scenario Risks and Opportunities Matrix and TCFD index.