Bangkok, Thailand – 14 July 2020 – Indorama Ventures Public Company Limited (IVL), a global chemical producer, has become a Task Force on Climate-Related Financial Disclosures (TCFD) Supporter. IVL is the first chemical company in Thailand and the second chemical company in Southeast Asia to become a TCFD supporter by volunteering to comply with TCFD recommendations and supporting their climate change agenda. Becoming an official Supporter cements the company's commitment towards and leadership in sustainability, embedding Environmental, Social and Governance (ESG) factors in IVL's business operations.
The TCFD was created in 2015 by the Financial Stability Board (FSB) to develop consistent climate-related financial risk disclosures for companies, banks, and investors when providing information to stakeholders. TCFD recommendations are globally recognized for climate-related risk management and disclosure from the perspective of financial institutions. IVL also conducts scenario analyses that adopt TCFD recommendations as guidelines for climate change strategy. These sensitivity analyses cover impacts on the company's productions, revenues and EBITDA.
Following the TCFD recommendations, IVL has applied the AQUEDUCT water risk atlas to forecast changes in future water stress and to identify sites that face the most significant risk of water demand and supply in the future. The results of these studies have been incorporated into the company's long-term adoption measures, which allow the management to make informed and lasting decisions for IVL's sustainability. Furthermore, transparent disclosures have enabled financial institutions, ESG funds, and investors to better access IVL's data, providing benefits such as having adequate information for investment decisions.
Dr. Deepak Parikh, Chief Strategy Officer at Indorama Ventures, said, "We are honored to be Thailand's first chemical company to become a TCFD Supporter as it is a leading global organization driving the climate change agenda. This reflects IVL's commitment to enhancing financial disclosures that improve business evaluation, create positive impact to sustainable investment and make economies more resilient and stable. The TCFD recommendations are recognized worldwide for risk management related to climate change and also a meaningful step in IVL's global sustainability."