TCFD 3-3

In 2020–2021, Moscow Exchange analysed the Group’s exposure to climate risks, including those related to products and services provided. Moscow Exchange assessed its interactions with customers, partners, and suppliers in this context. To analyse possible options, quantitative and qualitative methods of risk assessment were employed, including scenario analysis. Moscow Exchange also identified new opportunities for the Group companies and financial market participants associated with the transition to a lower-carbon global economy.

The scenario analysis revealed:
  • low-impact risks that emerged in the previous two years;
  • medium- and high-impact risks that emerged over the previous 20 years.

The calculations used scenario terms of the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (RCP 2.6 and IEA 2DS), supplemented by Group-specific criteria.

For each climate risk scenario, Moscow Exchange develops measures to mitigate the adverse impact of its activities on the climate and increase the Group’s ability to adapt to climate change, changes in the regulatory environment, and cater to the market’s appetite for responsible investing.

Following the analysis, heat maps of risks and opportunities were prepared.

Moscow Exchange Group’s strategic action plan for climate risk management includes the following key areas:
  • enhancing the understanding of climate risks;
  • regularly assessing climate risks (including physical and transition risks) and formulating actions to manage these risks in the short, medium, and long term;
  • integrating climate risks into Moscow Exchange’s risk map and embedding them into the general risk management processes;
  • disclosing information about:
    • climate risk identification and assessment processes;
    • appropriateness of scenarios related to climate change;
    • key climate risks and, where applicable, their impact on financial performance; and 
    • measures taken to adapt to climate change;
  • collaborating with regulators, industry associations, and international financial institutions to share best practices for managing climate risks.

The Group believes that this approach is in line with its business strategy, as it will foster a more stable and effective financial system and the achievement of greenhouse gas emissions reduction targets.