It is ever increasingly imperative that organisations around the globe further their knowledge and understanding of their risk positioning in a rapidly changing climate. Global investment powerhouse BlackRock in its 2020 Sustainability Survey noted that 37% of its invested assets by 2025 would be required to illustrate a sustainable management approach [1]. The Financial Stability Board created the Task Force for Climate Disclosures (TCFD) in order to assist the development of recommendations surrounding type of information that organisations should voluntarily disclose. The TCFD in 2017 released its climate- related risks and opportunities framework which aimed to create a standardised framework that better disclosed information surrounding capital allocation [2]. This report is a Scenario Analysis prepared for H&M Group based on the above TCFD guiding principles. It is divided into seven sections; company introduction, analysis of climate-related risks, understanding the selected climate scenarios, evaluation of business impacts, potential responses, a brief discussion outlining potential improvements to the scenario risk analysis and the conclusion.

Xinjie Gao. A Scenario Analysis of TCFD Implementation—As an Example of H&M. Academic Journal of Business & Management (2023) Vol. 5, Issue 16: 68-75. https://doi.org/10.25236/AJBM.2023.051610.

[1] BlackRock-Investment-Institute. (2022). Climate-awareinvesting/ BlackRock Investment Institute. BlackRock. https://www. blackrock. com/us/individual/insights/blackrock-investment-institute/investing-in-climate-awareness

[2] TCFD. (2017). The Use of Scenario Analysis in Disclosure of Climate-Related Risks and Opportunities. In Task Force on Climate-Related Financial Disclosures. https://assets. bbhub. io/ company/sites/60/2020/10/FINAL-TCFD-Technical-Supplement-062917. pdf

[3] H&M Group (2021). Annual&Sustainability Report 2021. https://hmgroup. com/investors/annual-and-sustainability-report/H&M Group (2021). Sustainability Disclosure 2021. https://hmgroup. com/wp-content/uploads/2022/03/HM-Group-Sustainability-Disclosure-2021. pdf

[4] Maiti, R. (2022). Fast Fashion:Its Detrimental Effect on the Environment. Earth. org. https://earth. org/fast-fashions-detrimental-effect-on-the-environment/

[5] McFall-Johnsen, M., & World Economic Forum. (2020). These facts show how unsustainable the fashion industry is. World Economic Forum. https://www. weforum. org/agenda/2020/01/fashion-industry-carbon-unsustainable-environment-pollu-tion/#:~:text=Morgan%20McFall%2DJohnsen&text=Fast%20fashion%20makes%20shopping%20for

[6] Christine Ro. (2020). Can fashton ever be sustainable? https://www. bbc. com/future/article/ 20200310-sustainable-fashion-how-to-buy-clothes-good-for-the-climate

[7] Changing Markets Foundation. (2021). Synthetics Anonymous Fashion brands'addiction to fossil fuels. https://changingmar-kets. org/wp-content/uploads/2021/07/SyntheticsAnonymous_FinalWeb. pdf

[8] McMillen, J. (2022). Sustainability On A Budget:How Ikea, Beautycounter And DHLDo It. Forbes. https://www. forbes. com/sites/jennmcmillen/2022/10/28/sustainability-on-a-budget-how-ikea-beauty counter-and-dh1-do-it/?sh=3e53d2512d38

[9] Pielke Jr, R. , Burgess, M. G. , &Ritchie, J. (2022). Plausible2005-2050 emissions scenarios project between2°C and 3°C of warming by 2100. Environmental Research Letters, 17(2), 024027. https://doi. org/10. 1088/1748-9326/ac4ebf

[10] Flavelle. (2022). Dressing for Hot:How a Warming Planet Is Charging What We Wear: https://ww. nytimes.com/2022/09/03/climate/cooling-clothes-climate-change. html

[11] International Energy Agency. (2023). Global Energy and Climate Model. In IEA. International Energy Agency. https://iea. blob. core. windows. net/ assets/3a51c827-2b4a-4251-87da-7f28d9c9549b/ GlobalEnergyandClima-teMode12022Documentation. pdf

[12] IPCC, (2014). Climate Change 2014: Synthesis Report. Contributionof Working Groups I, II and III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change [Core Writing Team, R. K. Pachauri and L. A. Meyer(eds. )]. IPCC, Geneva, Switzerland, 151 pp. 

[13] Intergovernmental Panel on Climate Change. (2014). Climate Change 2014 - Impacts, Adaptation and Vulnerability: Part B: Regional Aspects : Working Group II Contribution to the IPCC Fifth Assessment Report. Volume 2, Regional Aspects / Intergovernmental Panel on Climate Change. Cambridge University Press. 

[14] IPCC, (2022). Climate Change 2022: Impacts, Adaptation, and Vulnerability. Contribution of Working Group II to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change[H. -O. Portner, D. C. Roberts, M. Tignor, E. S. Poloczanska, K. \Mintenbeck, A. Alegria, M. Craig, S. Langsdorf, S. Loschke, V. Moller, A. Okem, B. Rama(eds. )]. Cambridge University Press. Cambridge University Press, Cambridge, UK and New York, NY, USA, 3056 pp. , doi:10. 1017/9781009325844.

[15] MIT. (2020). Radiative Forcing. MIT Climate Portal. https://climate. mit. edu/explainers/radiative-forcing#:~:text=Radiative%20forcing%20is%20what%20happens

[16] Kriegler, E., O'Neill, B. C., Hallegatte, S. , Kram, T. , Lempert, R. J. , Moss, R. H. , & Wilbanks, T. (2012). The need for and use of socio-economic scenarios for climate change analysis: A newapproach based on shared socio-economic pathways. Global Environmental Change, 22(4), 807-822. https://doi. org/ 10. 1016/j. gloenvcha. 2012. 05. 005

[17] Hewitt, R. J., Cremades, R., Kovalevsky, D. V., & Hasselmann, K. (2020). Beyond shared socioeconomic pathways(SSPs) and representative concentration pathways(RCPs):climate policy implementation scenarios for Europe, the US and China. Climate Policy, 1-21. https://doi. org/ 10. 1080/ 14693062. 2020. 1852068 

[18] Riahi, K. , vanVuuren, D. P. , Kriegler, E. , Edmonds, J. , O'Neill, B. C. , Fujimori, S. , Bauer, N. , Calvin, K. , Dellink, R. , Fricko, O. Lutz, W. , Popp, A. , Cuaresma, J. C. , KC, S. , Leimbach, M. , Jiang, L. , Kram, T. , Rao, S. , Emmerling, J. , &Ebi, K. (2017). The Shared Socioeconomic Pathways and their energy, land use, and greenhouse gas emissions implications: An overview. Global Environmental Change, 42, 153-168. https://doi. org/ 10. 1016/j. gloenvcha. 2016. 05. 009

[19] Amon, C. (2022). Cost of change: carbon Budgets vs. Carbon Taxes. https://www. businesstravelnews. com/ Sustainable-Business-Travel/2022/Cost-of-Change-Carbon-Budgets-vs-Carbon-Taxes

[20] Joseph, D. (2021). H&M Drives Innovation In Sustainability With 2021 Style. https://www. forbes. com/sites/josephdeace-tis/2021/05/06/hm-drives-innovation-in-sustainability-with-2021-style/\