TCFD Analysis
Implementing the TCFD’s Recommendations
IVL has embraced the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) for its financial and non-financial evaluations. We have also considered the IEA’s STEPS and SDS scenarios for financial analysis by using the internal carbon price as a parameter to quantify monetary impacts if a carbon tax is imposed in OECD and non-OECD countries, and conducted stress-testing analysis to anticipate the impacts on production, EBITDA, and revenue as part of our risk management process.
Indorama Ventures has implemented an internal carbon price (ICP) of USD 20 per tCO2e across all projects with expected environmental benefits (green projects). This policy, implemented alongside a relaxation in the payback period threshold for green projects, was taken to facilitate deeper decarbonization within the company allowing for the implementation of more decarbonization projects.
The company participates in multiple emissions trading schemes (ETS) worldwide, notably the EU ETS. Please refer to our TCFD report for additional details on our ETS and carbon tax payment forecasts.
In addition, as suggested by the TCFD, we applied the AQUEDUCT water risk atlas to forecast changes in future water stress to identify sites that face the most significant risk in future water demand and supply. The results of these studies have been incorporated in our long-term adaptation measures, which allows management to make informed and long-range decisions for IVL’s sustainability.
