TCFD Index
Governance
Requirement | Link or reference | Additional detail |
Governance (a) – Describe the board's oversight of climate-related risks and opportunities | 2024 Proxy statement, Framework for Board Oversight of ESG | See Note 1 |
Governance (b) – Describe management's role in assessing and managing climate-related risks and opportunities | 2024 Proxy statement, Framework for Board Oversight of ESG Climate-related Risks and Opportunities | See Note 1 |
Note 1: Our sustainability organization is responsible for developing our corporate sustainability strategy and working alongside our businesses and functions to execute that strategy. The organization is led by the vice president of global sustainability, and collaborates with teams across PPG to drive our environmental, social and governance (ESG) efforts, including assessing and managing climate-related risks and opportunities.
PPG's programs, initiatives and activities in the areas of environment, health, safety, technology and sustainability are overseen by the Sustainability and Innovation Committee of the Board, with support from other Board-level committees depending on the issues and risks involved. The Board engages with management on ESG strategy, risks and opportunities, and has oversight of the tracking of our sustainability progress.
Strategy
Requirement | Link or reference | Additional detail |
Strategy (a) – Describe the climate-related risks and opportunities the organisation has identified over the short, medium and long term | Examples of climate-related risks and opportunities with associated strategies | See Note 2 |
Strategy (b) – Describe the impact of climate-related risks and opportunities on the organisation's business, strategy and financial planning | Climate-related risks and opportunities | |
Strategy (c) – Describe the resilience of the organisation's strategy, taking into consideration different climate- related scenarios, including a 2 degrees C or lower scenario |
Note 2: Our paints, coatings and specialty materials are key enablers of the transition to a low-carbon economy. We sell a wide range of products in varied markets around the world, and the company is well positioned to take advantage of climate-related opportunities. These factors help make our business resilient, and ensure that we will be able to respond appropriately to any climate-related occurrences.
We have analyzed a range of climate scenarios and have incorporated important climate-related risks and opportunities into our growth strategy. See more detail on our scenario analysis exercise in the climate-related risks and opportunities section.
Risk Management
Requirement | Link or reference | Additional detail |
Risk Management (a) – Describe the organisation’s processes for identifying and assessing climate-related risks | Climate-related risks and opportunities | See Note 3 |
Risk Management (b) – Describe the organisation's processes for managing climate-related risks | ||
Risk Management (c) – Describe how the processes for identifying, assessing, and managing climate-related risks are integrated into the organisation's overall risk management | Governance Overview |
Note 3: PPG's physical risk assessment process uses global climate models to assess the relative risk to our facilities from six climate change stressors. The assessment identifies the most at risk PPG sites for more detailed analysis and resiliency planning. Transition risks from climate change, including market impacts, are considered at the business unit level. Each of our businesses conduct a climate risk assessment to define priority risks and opportunities. This work is being integrated into the overall business strategy process.
Climate-related risks are managed within the respective business or function based on the outcomes of the ERM process, the results of our physical risk assessment and input from our Sustainability function. This process is overseen by the Corporate Sustainability Committee. The vice president, global sustainability serves as the risk owner for ESG within the Enterprise Risk Management (ERM) process and is responsible for working across the organization to facilitate and drive action on many of the climate-related risks that we have identified.
Our annual ERM process separately identifies business and enterprise risks that could be related to climate change. The Enterprise Risk Committee (ERC) meets three times per year, and considers climate-related risk as one of many ESG-related risks. Through the standard ERM process, the ERC identifies climate-related risks, determines the company’s priorities for addressing those risks, and monitors progress of addressing these risks over time. We recognize that climate-related risks are also drivers of other risks, and are working to improve our consideration of these interconnected risks in our ERM processes.
The vice president, global sustainability, is accountable for reviewing the outcomes of the ERM process with functional teams and business leadership. Specific key performance indicators are provided to businesses and functions to mitigate greenhouse gas emissions from operations and from product solutions at customer sites.
Metrics and Targets
Requirement | Link or reference | Additional detail |
Metrics and Targets (a) – Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process |
Climate-related risks and opportunities | See Note 4 |
Metrics and Targets (b) – Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and related risks | ||
Metrics and Targets (c) – Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets | 2023 Progress Summary |