Task Force on Climate-Related Financial Disclosures Index

READ: Hexcel 2022 Report: Task Force on Climate-Related Financial Disclosures Index (TCFD)

Hexcel Climate-Related Risks & Opportunities

Category

Time Frame

Physical Risks

Increased operating costs and/or reduced revenues due to supply chain disruptions from acute hazards
Acute & Chronic
Short-term (2030)
Reduced revenues and/or increased operational costs due to facility and operational business disruptions from acute hazards with limited resiliency options
Acute
Medium-term (2035)
Increased capital costs due to asset damage from acute hazards
Acute
Medium-term (2035)

Transition Risks

Increased direct and indirect operating costs due to carbon pricing mechanisms
Policy & Legal
Short-term (2030)
Increased costs, including capital and operational expenditures, of compliance with climate-related regulations (current and emerging), including GHG emissions reporting requirements
Policy & Legal
Short-term (2030)
Increased capital and/or research and development costs to develop new technology and processes or incorporate new types of materials or market offerings
Technology
Medium-term (2035)
Reduced investment and/or market valuation due to loss in reputation from inadequacy of climate action due to limited technology and supply currently available to reduce the carbon intensity of business or inability to bring solutions for greater climate change
Reputational
Medium-term (2035)

Opportunities

Reduced operating costs from more efficient use of resources (e.g., energy, raw materials)
Resource Efficiency
Short-term (2030)
Enhanced reputational benefits from lightweighting of products that in turn improve fuel efficiency and overall resilience for customers
Resilience
Medium-term (2035)
Increased revenues and investment due to demand for lower emissions products
Products & Services
Medium-term (2035)