TCFD Report 2023/2024 (Scottish National Investment Bank)

Summary

• The Bank's operational emissions for FY22/23 were 58.66 tCO2e, which forms its operational baseline.p.15
• Commute travel is the largest source of operational emissions at 23.63 tCO2e, followed by electricity at 10.98 tCO2e.p.15
• The Bank has set an absolute emissions reduction target of 5% by FY28/29 against the FY22/23 baseline.p.17
• The Bank's target date for net zero operations is 2030, with the next iteration of its CMP due in 2029.p.17
• The Board has two Executive Directors and nine Non-Executive Directors and is accountable to the Scottish Ministers as Shareholder.p.5
• Climate risk is assessed under four categories within the investment decision process, before a company becomes an investee.p.12
• This is the Bank's first voluntary disclosure using the TCFD framework, and it expects portfolio emissions to grow year-on-year as a development bank.p.17

Key insights

1. The Bank is not required to report against TCFD but made a voluntary commitment to do so in its business plan.p.4
2. The TCFD framework is structured around four thematic areas: Governance, Strategy, Risk Management and Metrics & Targets.p.4
3. The Risk Management and Conflicts Committee is charged with oversight of the Bank's climate actions.p.6
4. The Bank measures economic impacts of climate change using scenarios derived from SEPA flood maps and the CCC's CCRA3 evidence.p.8
5. Seven Level 1 risk types have been identified in the Bank's risk taxonomy.p.11
6. Gas emissions (Scope 1) were 6.49 tCO2e and business travel was 8.54 tCO2e in FY22/23.p.15
7. Calendar year 2022 forms the first baseline for the Bank's portfolio emissions, which will be re-baselined annually.p.16
8. Portfolio emissions are identified as downstream Scope 3 emissions and allocated in line with category 15 of the GHG protocol.p.16
9. Scottish winters have become 5% wetter and average temperatures have risen by 0.5C over the last 30 years.p.3