Task Force on Climate-related Financial Disclosures

We are working to implement the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

We support the purpose of TCFD, which is to stimulate better climate-related disclosures that will enable financial and other partners to gain a clear view of which companies will endure or even flourish as we transition towards a low-carbon future. Better information about climate risks and opportunities will then also flow into companies’ risk management and strategic planning processes. As this occurs, companies’ and investors’ understanding of the financial implications associated with climate change will grow, empowering the markets to channel investment to sustainable and resilient solutions, opportunities, and business models.

We made significant progress during 2021 in implementing the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in each of the four thematic areas: governance, strategy, risk management and targets and metrics.

Our progress during 2021

We appointed an external partner in 2021, to support our work in implementing the Strategy pillar of TCFD recommendations. This has involved evaluating climate risks and opportunities under different climate scenarios. We published a detailed report on our TCFD work in our 2021 Annual Report (see pages 59-73), including our qualitative risk and opportunity assessment. In our 2021 Sustainability Report, we included the outputs of our first quantitative impact assessment, undertaken in the first half of 2022. See pages 38-38.

Rotork further developed its net-zero roadmap in 2021. We developed science-based targets for scopes 1 & 2 and scope 3 and have submitted them to the Science Based Targets initiative for validation. We have also committed to target net-zero for scopes 1 & 2 by 2035 and by 2045 for scope 3. The baseline year for all targets is 2020.

Our climate-related targets

Rotork has near-term science-based targets to reduce CO2 e emissions across scopes 1 & 2 and scope 3.

1. We have set a market-based target to reduce scope 1 & 2 emissions by 42% by 2030 compared with 2020. This is an absolute reduction target, aligned to a 1.5°C pathway
2. For scope 3, we have set an absolute reduction target for emissions associated with the use of sold products. We are targeting to reduce emissions by 25% by 2030, in line with a well-below 2°C pathway. We have also set a supplier engagement target for emissions associated with purchased goods and services. We will be requesting that suppliers representing 25% of supply chain emissions set science-based targets by 2027