LL - Final Sample

Climate-Related Risk Assessment
CCRA
Climate-Related Risk Assessment LL 2022
Executive Summary
The purpose of this report is to provide LL with a stronger understanding of how their business operations may be impacted by
climate change and the transition to a low-carbon economy. This was done through an analysis of LL’ climate-related risks, the
impacts of those risks, and the potential climate-related opportunities associated with each risk. The outcome of this evaluation is a
preliminary assessment of LL’ climate-related risks, which will include the following items:
● A review of select risk frameworks and how they are used by organizations
● Descriptions of climate-related risks and how this will impact LL’ business operations in the next 10 years
● Impact and consequence scoring matrices to determine an inherent risk score for each climate-related risk
● Potential opportunities for each risk
● Identification of LL’ top 5 priority climate-related risks and associated impacts
● Recommendations for measuring and monitoring progress towards minimizing the impacts of the top identified risks
Research on 4 risk frameworks (TCFD, CDSB, SASB, GRI) and 4 organizations (TD, Roche Holding AG, Cardinal Health, Pfizer)
provides a thorough understanding of climate-related risks and opportunities and how different organizations address these risks and
opportunities. This information was used to identify the transitional and physical risks that will likely occur in the next 10 years and
how each risk could impact LL’ building systems and infrastructure, staff and services, reputation, and financial well-being. The next
step was creating the LL Climate Risk Assessment Table containing 24 climate-related risks, risk categories and descriptions,
impacts, risk scoring, and potential opportunities. The risk scoring process determined that LL’ top 5 priority risks are flooding,
climate inflation, natural resource availability, climate influenced legislative changes, and storms.
Canadian Climate Risk Analysts 1

This climate risk report provides a detailed outline of the research, risk classification and risk scoring that helped identify LL’ top 5
priority risks, concluding with recommendations for measuring and monitoring progress towards minimizing the impacts of these risks
to create a sustainable future for the organization.
Disclaimer:
This report is an academic exercise conducted by graduate students in the Masters of Environment and Sustainability (MES)
program in the Centre for Environment and Sustainability (CES) at Western University, London, Ontario, Canada. The named
consulting company that produced this report is a fictional entity created for the purpose of this exercise. For information on this
program, please visit www.uwo.ca/enviro
Authors:
Daemon Dias
Carter Eady-Kissau
Aidan Kuepfer
Mohammed Majeed
Madison Poultney

Contents
Definitions ............................................................................................................................................................................................ 5
Abbreviations ....................................................................................................................................................................................... 6
Why this Report was Made .................................................................................................................................................................. 7
Navigating the Report and Spreadsheet ........................................................................................................................................... 7
1.0 Risk Frameworks ........................................................................................................................................................................... 8
1.1 Task Force on Climate-Related Financial Disclosures ................................................................................................................ 8
1.2 Climate Disclosure Standards Board ........................................................................................................................................ 12
1.3 Sustainability Accounting Standards Board .............................................................................................................................. 16
1.4 Global Reporting Initiative ......................................................................................................................................................... 19
1.5 Key Takeaways ........................................................................................................................................................................ 26
2.0 Organization Assessments........................................................................................................................................................... 27
2.1 TD Canada ............................................................................................................................................................................... 27
2.2 Roche Holding AG .................................................................................................................................................................... 31
2.3 Cardinal Health ......................................................................................................................................................................... 35
2.7 Summary Table ........................................................................................................................................................................ 42
2.8 Key Takeaways ........................................................................................................................................................................ 42
3.0 Medium and Long-Term Risks ..................................................................................................................................................... 47
3.1 Transitional Risks ..................................................................................................................................................................... 47
3.2 Physical Risks .......................................................................................................................................................................... 48
4.0 Categorical Risks ......................................................................................................................................................................... 50

4.1 Infrastructure and Building System Risks.................................................................................................................................. 50

4.2 Market Impacts or Service Interruption ..................................................................................................................................... 50
4.3 Financial Impacts...................................................................................................................................................................... 51
4.4 Reputational/Environment Impacts ........................................................................................................................................... 51
4.5 Staff Impacts ............................................................................................................................................................................ 51
5.0 Risk Matrix ................................................................................................................................................................................... 52
5.1 Rationale .................................................................................................................................................................................. 52
5.2 Data Gaps ................................................................................................................................................................................ 55
6.0 Climate-Related Opportunities ..................................................................................................................................................... 57
6.1 Resource efficiency .................................................................................................................................................................. 57
6.2 Low-emission energy sources .................................................................................................................................................. 57
6.3 New products and services ....................................................................................................................................................... 58
6.4 Access to new markets ............................................................................................................................................................. 59
6.5 Supply chain resiliency ............................................................................................................................................................. 59
7.0 Top 5 Climate-Related Impacts .................................................................................................................................................... 60
7.1 Reduction Strategies and Next Steps ....................................................................................................................................... 61
8.0 References................................................................................................................................................................................... 65
9.0 Appendix ...................................................................................................................................................................................... 78

Definitions
Climate change
- A fluctuation in long-term regional temperature and weather patterns. The main driver of climate change is historically natural
but has recently been driven by human activities.
Environment
- The conditions in which a person, plant, or animal lives (e.g. people live within a natural and built environment to meet their
basic needs which include food, water, and shelter).
Greenhouse gas emissions
- The consumption, use, and burning of fossil fuels which get trapped in the atmosphere, and reduce the amount of reflective
surfaces allowing solar radiation to emit back to space, ultimately contributing to a warmer planet.
Sustainability
- Doing things in a way that meets today’s needs without compromising the needs of future generations.
- This includes the focus and the needs of all pillars of society including but not limited to health and safety, education,
community engagement, gender equality, social development, diversity, governance and ethics. The three pillars of
sustainability are often referred to as the social, environment, and economic pillars.
Sustainability Reporting
- Sustainability reporting refers to how companies disclose their sustainability related information to the public or private
stakeholders. Several frameworks exist which aim to help companies cover important content to disclose.
United nations sustainable development goals
- A set of 17 global goals that are focused on achieving a better and more sustainable future for humanity. Goals range from
reducing poverty to climate action and gender equality.
More definitions will be identified in the risk description section of the spreadsheet.

Abbreviations
CDSB - Climate Disclosure Standards Board
ESG - Environment, Social, Governance
GHG - Greenhouse Gas Emissions
GRI - Global Reporting Initiative
IIRC - International Integrated Reporting Council
LL – Naming of the business for who this report was developed for, but shall not be named for the purpose of showing the sample
MOI - Magnitude of Impact
SASB - Sustainability Accounting Standards Board
TCFD - Task Force for Climate-Related Financial Disclosure
Y-O-Y - Year over year

Why this Report was Made

Climate change is undoubtedly one of the most discussed topics among global leaders and is being prioritized as an area of
importance in the business world more and more as the years go on. Climate change, therefore, is not only important for the planet
but for the success of LL’ business operations. In short, this report was made to help senior leaders and staff of LL gain awareness of
the importance and relevance that climate change will have on LL in the next 5-10 years and beyond.
Navigating the Report and Spreadsheet

Report: This report is broken into 7 sections outlined below:
1) Section 1 examines 4 different sustainability frameworks and helps identify reporting frameworks best suited for LL.
2) Section 2 illustrates how other healthcare and related businesses have decided to report their material information as it
relates to sustainability and climate change. Section 2 contains 4 different organizational examples.
3) Section 3 briefly touches on 5 medium and long-term climate-related risks that LL is likely to encounter over the next 5-10
years; however, from sections 3 and beyond, the excel sheet (discussed below) will make a good companion.
4) Section 4 describes the 5 categories where the identified risks and impacts were placed.
5) Section 5 is important for understanding how each risk was scored. This part of the report highlights the developed matrices
and provides justification for why each risk was scored as such. Additionally, section 5 covers over 15 identified data gaps
that LL could utilize when updating and re-scoring its climate-related risks.
6) Section 6 is all about opportunity. This part of the report highlights how LL can take the presented information and use it to
drive positive business expansion towards mitigating and adapting to climate change.
7) Section 7 is the last milestone of this report and discusses the top 5 climate-related impacts with the highest level of risk to LL
based on the categories outlined in section 4. Moreover, section 7 continues to add value by outlining immediate next steps
and strategies to mitigate and adapt to the top 5 climate-related impacts.
Spreadsheet:
The excel spreadsheet is a valuable companion to be treated equally as important as this report. The spreadsheet which can be
found by clicking here, outlines 24 climate-related risks, impacts, and opportunities, along with informational resources, scoring of
risks by individual category, and the risk scoring matrices. The spreadsheet also goes into more depth and detail about LL’ climate-
related risks, impacts, and opportunities.

1.0 Risk Frameworks

These four frameworks (TCFD, CDSB, SASB, GRI) were used for the purpose of this climate risk assessment due to their frequency
of use and popularity in Environment, Social, Governance (ESG) reporting. To understand how LL reports climate risks, impacts, and
opportunities, the feel and language of the report must be familiar to stakeholders. Therefore, a brief understanding of how the Task
Force for Climate-Related Financial Disclosure (TCFD), Climate Disclosure Standards Board (CDSB), Sustainability Accounting
Standards Board (SASB), and General Reporting Index (GRI) frameworks operate will help when deciding what frameworks serve
the reporting goals of LL.
1.1 Task Force on Climate-Related Financial Disclosures
One of the most significant risks that organizations face today is in relation to climate change. It is widely recognized that continued,
constant emissions of greenhouse gasses will damage the environment and lead to warming temperatures, but the exact timing and
severity of the effects are difficult to estimate. The TCFD was established in 2015 to help identify the information needed by
investors, lenders, and insurance underwriters to appropriately assess and price climate-related risks and opportunities. The TCFD is
made up of 32 global members. The members were selected by the Financial Stability Board and come from various organizations,
including large banks, insurance companies, and asset management companies. (Bloomberg, 2017).
One of the main strategies within the TCFD framework includes four widely adoptable recommendations on climate-related financial
disclosures that are applicable to organizations across sectors and jurisdictions. These four key features of recommendations consist
of: adoptable by all organizations, included in financial fillings, designed to solicit decision-useful information on financial impacts,
and strong focus on risks & opportunities related to a transition to lower-carbon economy. The TCFD framework mentions that

climate-related issues could be material for many organizations in complying more effectively to existing disclosure obligations
(Bloomberg, 2017).
Throughout the process of designing and considering the four recommendations above, the TCFD structures the recommendations
around four thematic areas that represent core elements of how organizations operate: governance, strategy, risk management, and
metrics and targets (Bloomberg, 2021).
1) Governance: The organization’s governance around climate-related risks and opportunities

2) Strategy: The actual and potential impacts of climate-related risks and opportunities on the organization’s businesses,
strategy, and financial planning
3) Risk Management: The processes used by the organization to identify, assess, and manage climate-related risks
4) Metrics and Targets: The metrics and targets used to assess and manage relevant climate-related risks and opportunities
The TCFD identifies a growing demand by investors and other stakeholders for climate-related financial information, stating that the
improved disclosure of climate-related risks and opportunities will provide investors and other stakeholders with the necessary
metrics and information needed to undertake robust analyses of the potential financial impacts of climate change. Although several
other climate-related disclosure frameworks have emerged in an effort to meet the growing demand for such information, the TCFD
satisfies the need for a standardized framework to encourage orientation across existing G20 jurisdictions and provides a common
framework for climate-related financial disclosures (Bloomberg, 2021).
Climate-Related Risks:
The TCFD framework divides climate-related risks into two major categories: (1) risks related to the transition to a lower-carbon
economy and (2) risks related to the physical impacts of climate change (Bloomberg, 2021).

1. Transition to a Lower-Carbon Economy – Risks:
a. Policy & Legal Risks – Policy actions contributing to the adverse effects of climate change or promoting
adaptation to climate change. Legal Risk identifies the possibility of climate-related litigation claims resulting from
failure to mitigate the impacts of climate change, brought before the courts by a specific property owner or
shareholder.
b. Technology Risk - New technology displaces old systems and disrupts some parts of the existing economic
system. Organizations will need to identify new and innovative technology that will help advance production in an
environmentally friendly manner. Timing of technology development and deployment is an uncertainty in assessing
technology risk.
c. Market Risk - Shifts in supply and demand for certain commodities, products, and services as climate-related
risks and opportunities are increasingly considered.
d. Reputation Risk – Changing consumer behaviour or community perception of an organization’s climate change
mitigation efforts and efforts to aid in the transition to a lower-carbon economy.
2. Physical Impacts of Climate Change – Risks:
a. Acute Risk – Acute physical risks refer to those that are event-driven, including increased severity of extreme
weather events, such as cyclones, hurricanes, or floods.

b. Chronic Risk - Chronic physical risks refer to longer-term shifts in climate patterns (e.g., sustained higher
temperatures) that may cause sea level rise or chronic heat waves.
Climate-Related Opportunities:
Efforts to mitigate and adapt to climate change also produce opportunities for organizations. For example, the adoption of low-
emission energy sources can increase resource efficiency, resulting in cost savings. Climate-related opportunities will vary
depending on the region, market, and industry in which an organization operates. The TCFD framework has identified five categories
for climate-related opportunities outlined below (Bloomberg, 2021):
1. Resource Efficiency – Organizations that have successfully improved efficiency across their production and distribution
processes can reduce their operating costs.
2. Energy Source – Improving and advancing the use of low emission alternatives energy sources such as wind, solar,
wave, tidal, hydro, geothermal, nuclear, biofuels, and carbon capture and storage.
3. Products & Services – Organizations that innovate and develop new low-emission products and services may improve
their competitive position and capitalize on shifting consumer and producer preferences.
4. Markets – Organizations that pro-actively seek opportunities in new markets or types of assets may be able to diversify
their activities and better position themselves for the transition to a lower-carbon economy.
5. Resilience – The concept of climate resilience involves organizations developing adaptive capacity to respond to climate
change to better manage the associated risks and seize opportunities, including the ability to respond to transition risks
and physical risks.

Financial Impacts:
To make more informed financial decisions, investors, lenders, and insurance underwriters need to understand how climate-related
risks and opportunities are likely to impact an organization’s future financial position as reflected in its income statement, cash flow
statement, and balance sheet. While climate change affects nearly all economic sectors, the level and type of exposure and the
impact of climate-related risks differs by sector, industry, geography, and organization (Bloomberg, 2017).
Fundamentally, the financial impact of climate-related issues on an organization are driven by the specific climate-related risks and
opportunities to which the organization is exposed and its strategic and risk management decisions to manage risks and seizing
opportunities. The TCFD framework encourages organizations to undertake both historical and forward-looking analyses when
considering the potential financial impacts of climate change, with greater focus on forward-looking analyses as the efforts to mitigate
and adapt to climate change are without historical precedent (Bloomberg, 2021).
1.2 Climate Disclosure Standards Board
The Climate Disclosure Standards Board (CDSB) is designed to help organizations prepare and present environmental and social
information in mainstream reports for the benefit of investors. It allows investors to assess the relationship between specific
environmental and social matters and the organization's strategy, performance, and prospects (CDSB, 2022).
Environmental and social information includes information about the reporting organization’s:
1. Natural, human, and social capital dependencies.

2. Environmental and social results.

3. Environmental and social risks and opportunities.

4. Environmental and social policies, strategies, and targets.
5. Performance against environmental and social targets.
CDSB offers companies a framework for reporting environmental information with the same rigor as financial information. This
provides investors with decision-useful environmental information via the mainstream corporate report, facilitating the efficient
allocation of capital (CDSB, 2021).
In 2015, the CDSB Framework for reporting environmental and climate change information was released. The CDSB Framework was
updated in April 2018 to align with the recommendations of the TCFD and other key mainstream reporting requirements, helping to
streamline the reporting cycle for many organizations. Due to changing markets and user demands, the scope of the CDSB
Framework was expanded to include social and environmental, including further climate change information. Following public
consultation, the CDSB Framework for reporting environmental and social information was released in 2022 (CDSB, 2022).
The overarching purpose of the CDSB is to fulfill the mission of changing the world’s accounting systems to benefit the environment
in the long-term, offering frameworks, tools and guidance that is practical and meaningful to companies, investors, and stakeholders.
The CDSB seeks to collaborate with companies, and investors all over the world to harmonize the norm of reporting to complement
and supplement, and not duplicate approaches to reporting (CDSB, 2022).
The CDSB has a set of guiding principles that are designed to ensure that environmental and social information in mainstream
reports is useful to investors, is correct and complete and is based on criteria that are suitable for conducting assurance activities.
Below is a list of the seven guiding principles to be used within the CDSB:

1. Environmental and social information shall be prepared applying the principles of relevance and materiality.
2. Disclosures shall be faithfully represented.
3. Connections shall be made between environmental, social and other information in the mainstream report.
4. Disclosures shall be consistent and comparable.
5. Disclosures shall be clear and understandable.
6. Disclosures shall be verifiable.
7. Disclosures shall be forward looking.
These seven guiding principles can be applied in determining, preparing, and presenting environmental and social information in
accordance with the reporting requirements in the CDSB Framework (CDSB, 2022).
A set of twelve requirements has been established within the CDSB to enforce standardized disclosure of environmental and social
information that complements and supplements other information in mainstream reports. These requirements look at areas of
importance when communicating associated guidance for reporting environmental and social information such as, governance,
business risk/opportunities and future outlook.
1. Governance: Disclosures shall describe the governance of environmental and social policies, strategies and information.
2. Management’s environmental and social policies, strategies and targets: Disclosures shall report management’s
environmental and social policies, strategies, and targets, including the indicators, plans and timelines used to assess
performance.
3. Business risks and opportunities: Disclosures shall explain the material current and anticipated environmental and social
risks and opportunities affecting the organization and the processes used to identify, assess and prioritize the risks and
opportunities.

4. Sources of environmental and social impact: Quantitative and qualitative results, together with the methodologies used to
prepare them, shall be reported to reflect material sources of environmental and social impact.
5. Performance and comparative analysis: Disclosures shall include an analysis of the information disclosed in REQ-04
compared with any performance targets set and with results reported in previous periods.
6. Outlook: Management shall summarize their conclusions about the effect of environmental and social impacts, risks and
opportunities on the organization’s future performance and position.
7. Organizational Boundary: Environmental and social information shall be prepared for the entities within the boundary of the
organization, or group, for which the mainstream report is prepared.
8. Reporting policies: Disclosures shall cite the reporting provisions used for preparing environmental and social information
and shall confirm that they have been used consistently from one reporting period to the next.
9. Reporting period: Disclosures shall be provided on an annual basis.
10. Restatements: Disclosures shall report and explain any prior year restatements.
11. Conformance: Disclosures shall include a statement of conformance with the CDSB Framework.
12. Assurance: If assurance has been provided stating that reported environmental and social information is in conformance with
the principles and requirements of the CDSB Framework, this shall be included or cross-referenced in the statement of
conformance.

1.3 Sustainability Accounting Standards Board
The Sustainability Accounting Standards Board (SASB) separates itself from other frameworks by breaking down the risks, impacts,
and opportunities for businesses into 11 sectors, then further dividing these sectors into 77 different industries. LL is categorized in
the HealthCare sector, and further in the Delivery service industry. The health care delivery industry is defined by the business model
of owning and managing health care related facilities (labs and patient service centers). The health care delivery industry is further
described as providing services such as inpatient and outpatient care and other health-related lab services like testing samples,
fulfilling requisitions, and diagnosing individuals (SASB, 2022).
The SASB framework is a not-for-profit organization (making it affordable) developed in 2011 that aims to help organizations openly
and responsibly report on how climate change and other ESG issues may impact their business. This standard of reporting is
becoming more common as the climate crisis concerns continue to grow. The Works Design studio noted that the percentage of
companies reporting with SASB has increased from 16% in 2019 to 27% in 2020, an 11% Y-O-Y increase, which highlights the
importance of keeping stakeholders in the loop regarding non-financial matters (Works Design, 2021). Companies are identifying the
benefits of sustainability reporting as it becomes more common. Some benefits of reporting on ESG topics include improved
transparency, risk management, and performance (Rodriguez et al., 2017).
The SASB framework for reporting has been criticized for the fact that it does not require companies to report anything beyond
regular securities and exchange commission filings. The SASB believes that the sustainability reporting of a company should look
and feel familiar to how financial metrics are measured. According to the International Integrated Reporting Council (IIRC), the unity
in SASB disclosures across companies is what makes the framework “decision-useful” for comparing and assessing short, medium,

and long-term economic and environmental risks, impacts, and opportunities (Rodriguez et al., 2017; SASB, 2022). Therefore, SASB
suggests 6 places of ESG integration on a company's 10-K annual report on 4 line items, which include the following:
1. Business Description (Line Item 1)

a. Risk Factors (Line Item 1A)
2. Legal Proceedings (Line Item 3)
3. Management’s Discussion & Analysis (Line Item 7)
a. Quantitative and Qualitative Disclosures about Market Risks (Line Item 7A)
4. Financial Statements (Line Item 8)
The integrated approach aims to save time and money for reporting non-financials, as opposed to stand-alone documents. While the
aim of SASB is to have integrated reports, companies do not always adhere to this standard. For example, some companies use the
SASB framework to make stand-alone reports and include a section on their websites to make the reports more interactive with
stakeholders (Works Design, 2021). This non-integrated reporting approach falls short of the goal of SASB, which is to develop a
framework to make comparisons across companies easier (Schooley and English, 2015; SASB 2022). At the time of writing,
integrated and consistent reporting across organizations seems unlikely due to a lack of participation and quality in reporting.
For example, while hundreds of companies are reporting with SASB, only 38% of them are reporting on all suggested line items in
their disclosures and making this information useful to investors (Rodriguez et al., 2017). This issue also exists with other
frameworks, like the Climate Disclosure Project. Kimberely-Clarke, a parent organization for several brands, admitted to water usage
being an integral part of product development but did not disclose this as a risk factor, demonstrating the inability for any one
framework to be a means to an end (Rodriguez et al., 2017).

To ensure the quality of disclosure and usefulness of the framework, SASB has continually updated their frameworks to ensure
interested parties receive the most useful information. SASB believes that, as the nature and landscape of industries change, so
should the frameworks that guide the disclosure of risks, impacts, and opportunities. Notably, the healthcare sector delivery service
industry framework was published in 2015 and then republished in 2018 after going through a year-long review process (SASB,
2022). The review and development process of industry guidelines consists of three phases:
1. Consultation: Consults with hundreds of organizations, industry professionals, associations, and investors to develop
standard metrics and key-performance indicators for each sustainability impact
2. Technical Agenda: Publishes agenda for areas of concentration, standards, and privacy regarding revision and development
3. Public Comment Period: Allows a 90 day, sometimes longer window for the public and interested parties to give feedback
on the technical agenda and proposed revised or developed industry standards
Still, with updated frameworks, not all companies will be able to meet 100% disclosure due to security needs and protection, though
this tends to be more relevant for the aerospace industry (SASB, 2022).
SASB, like other frameworks, notes that it may not cover all sustainability risks, impacts, and opportunities that are relevant to an
industry, and leaves it to the discretion of the company and encourages independent assurance (Schooley and English, 2015).
Attempting to integrate a set of standards with limited guidance to an already complex report (annual report) can cause confusion for
stakeholders and further complicate annual reports. The IIRC is a framework that, like SASB, is an integrated approach for reporting
on ESG issues but admittedly lacks in its wide and global approach. While sustainability reporting is relatively new, and SASB even
more so, it will benefit organizations as more chartered professional accountants join advisory/committee boards for these

sustainability frameworks (Rodriguez et al., 2017). More importantly, is the discussion of sustainability frameworks joining forces to
make one superior framework for reporting. The Delphi Group mentions that SASB, IIRC, and CDSB will join forces and possibly
release their first combined sustainability reporting framework come June of 2022 (Schwarz, 2022).
1.4 Global Reporting Initiative
While LL currently reports with the Global Reporting Initiative (GRI), it was decided that inclusion and comparison of GRIs updated
2021 standards would be relevant for the scope of this report. The GRI, developed in 1997, aims to increase transparency,
consistency, and disclosure of nonfinancial material impacts of a company as they relate to the United Nations Sustainable
Development Goals. While the GRI is the world’s most widely used framework for sustainability reporting, the number of companies
reporting with this standard in North America remains relatively small, compared to Europe (Halkos and Nomikos, 2021).
Underreporting in North America is noted to take place because companies believe investors and stakeholders do not value a
company’s social reporting (Halkos and Nomikos, 2021). It has been discussed that government influence is needed to increase
rates of sustainability reporting (Halkos and Nomikos, 2021). However, popularity amongst a company’s sustainability reporting may
increase in the future, which is why knowing what frameworks are relevant and useful for LL is important.
In the past, the GRI framework did not have sector specific disclosure documents like SASB does, which limited their impact for
industry specific reporting; however, the GRI will develop 40 sector specific standards in the four groups listed below:
1. Basic materials and needs (Group 1)

2. Industrial (Group 2)
3. Transport, infrastructure and tourism (Group 3)

4. Other services and light manufacturing (Group 4)
LL falls under group 4, other services and manufacturing in the managed healthcare sector, which describes the sector as that which
provides health care services, which is slightly less descriptive than SASB. The sector specific standards should make reporting
more valuable for stakeholders (investors, policy makers, capital markets, society). Unfortunately, at the time of writing, some
standards, including the managed healthcare standard, have not been developed. (GRI, 2022). Therefore, GRI’s universal standards
will suffice until the release of the managed healthcare standard. Once the sector standards are published, companies will report with
the GRI’s universal standards (GRI’s recommended starting point for reporting) alongside the sector standards, as the GRI
recognizes that its sector standards may not capture all of which is material to a company regarding the matter of ESG. It is important
to mention that if an organization reporting with the GRI identifies with one of the forty sector standards, then it is required to report
with that sector standard (pending availability) in combination with the other standards (universal and topic).
The GRI has a third set of standards labeled “topic standards” which include, waste, occupational health and safety, and tax. To
recap, three categories of GRI standards exist:
1. Universal standards (GR1, GR2, GR3)

2. Sector standards (not fully developed)
3. Topic standards
The three standards listed above come with requirements and recommendations. The standards include different required
information, sets of instructions and procedures to follow, and suggested recommendations that could enhance the disclosure and
transparency of a company’s sustainability performance. The intended purpose of GRI is to guide a company's decision making, goal

and target setting processes to improve its ESG performance. With improved performance, companies can expect to receive positive
stakeholder feedback in the form of praise, capital investment, and recognition.
Reporting with the 2021 universal standards is applicable to all organizations and has three main sections including foundation
(GR1), general disclosures (GR2), and material topics (GR3) which helps highlight and determine impacts and their significance
(GRI, 2022). While the universal standards capture the broad climate and ESG risks, impacts, and opportunities of an organization, it
will not be as thorough as the sector standards (GRI, 2022). The sector standards outline in detail what topics are likely to be the
most material for companies in a specific sector. The topic standards describe the information or data that needs to be disclosed
according to the standards. The three standards help identify and group the risks, impacts, and opportunities of an organization into
categories such as child labour, water, waste and human rights, among others. During the reporting phase, if any information is to
not be disclosed, a reasoning shall be provided as to why such information was left out of a report (GRI, 2022).
While the GRI wants companies to disclose as much material information as possible, they allow organizations to report on an “and-
or” basis, such that companies can report on significant topics such as people, planet, and profit, and/or report on specific topics like
climate change or human rights. When companies choose to report on a specific topic only, the GRI states that the reporting
company only needs to reference GRI standards as a whole, rather than the three separate standards (universal, sector, topic).
Choosing to report completely in compliance with the GRI standards means a company will need to use a content index to improve
transparency, navigability, and highlight what has been omitted from the report. Unlike SASB, the GRI does not require a specific
reporting method (integrated annual reports).

Table 1. Sustainability Framework Summary

Framework Description Audience Report Focus ESG Companies Sectors using Cost/Difficulty to
Focus that use this the Framework achieve
Framework
Three sets of standards All Business Environment, TD Canada, Mining, Food, Available as a free
(universal, sector, and stakeholders impacts on Social, Roche Textiles and public good.
topic) used by society Governance Holding AG apparel, Not difficult since it is
companies to report Banking, the world’s most
material topics to their Insurance widely used standards
business. for sustainability
reporting.
Industry-specific Investors How ESG Environment, TD Canada, Food and SASB Annual Alliance
standards (77) that help issues impact Social, Cardinal beverage, member fee: $400
companies identify the business Governance Health Transportation,
topics that may impact Consumer Easier to follow with
their financial goods, the alliance
performance. Financial, membership as it
Technology and provides best
communications practices and insights
on sustainability
accounting.
Established to help Investors How climate- Environment, TD Canada, Financial Easily adaptable to all
identify the information and financial related risks Governance Roche (lending, organizations that can
needed by investors, stakeholders and Holding AG, underwriting, use it due to the four
lenders, and insurance opportunities Cardinal asset recommended
underwriters to impact Health, Pfizer management, disclosures developed
appropriately assess business investing). (governance, strategy,
and price climate- risk management,
related risks and metrics and targets).
opportunities.

Framework Description Audience Report Focus ESG Companies Sectors using Cost/Difficulty to
Focus that use this the Framework achieve
Framework
Designed to help All How business Environment, Samsung Financial, Improved holistic
organizations prepare stakeholders impacts on Social, electronics, Industrial, system of reporting
and present society Governance BT plc Commercial including
environmental and discretionary sustainability-related
social information in factors and financial
mainstream reports for viability in order to
the benefit of investors. provide stakeholders
with better decision-
making and capital
allocation.
Summary: Table 1 describes the comparison between four climate risk assessment frameworks including the GRI, SASB, TCFD,
and CDSB. Each one is used in ESG reporting, however, the frameworks differentiate based on the focus of the report itself. For
instance, the GRI and CDSB framework have a report focused on helping businesses understand how they are impacting society.
The SASB framework allows businesses to analyze how ESG issues are going to affect them. Lastly, the TCFD framework is used
by businesses to understand how climate-related risks and opportunities are going to impact them.
There are roughly 500 organizations that use the GRI Framework, spread across 70 countries (Global Reporting Initiative, 2022).
This includes organizations within the agriculture, automotive, finance, healthcare, communications, and retail sectors (Global
Reporting Initiative, 2022). The SASB Framework is used by similar organizations, including those in the sectors of food and
beverage, transportation, consumer goods, extractives and minerals processing, resource transformation, and technology and
communications sectors (Sustainability Accounting Standards Board, 2022). Organizations that use the TCFD Framework are

typically those in the financial sector, but also include energy, information technology, materials, and healthcare (Task Force on
Climate-related Financial Disclosures, 2022). Lastly, the CDSB framework also serves other sectors including energy, finance,
industries, healthcare, and materials (Climate Disclosures Standards Board, 2022).
According to Rio ESG Limited, "TCFD is one of the most popular ESG reporting frameworks. In fact, in 2019, nearly 60% of the
world's 100 largest companies either supported the TCFD, reported in line with the TCFD recommendations, or both" (2021).
Although the TCFD reporting tool is increasing immensely in popularity, the Global Reporting Initiative standards are the world's most
widely used by organizations in impact reporting (Nemeth, 2021).
Many of these standards are free to access through their online tools and reports. A limitation is that an exact cost for the use and
report generation of each framework could not be found, however, it is stated in the SASB Alliance membership for individuals and
organizations that pursuing a membership comes with the benefits of aiming to "build capacity among their staff, identify best
practices, and explore the use of material sustainability information" (Sustainability Accounting Standards Board, 2022). It costs
approximately $400 for an organization to acquire this membership (Sustainability Accounting Standards Board, 2022). In terms of
third party verification, the TCFD framework does not require that an organization audits their disclosures (Turner, 2021). However,
there is "significant value in third party assurance of TCFD aligned disclosures in the longer term, and notes that companies may
choose to obtain third party verification or assurance on a voluntary basis in the meantime" (Turner, 2021).
The GRI Framework requires organizations to notify GRI when its standards are being used either "by an individual from the
reporting organization or by a 3rd party representing the organization who is authorized to submit the GRI Standards report on the
organization's behalf" (Global Reporting Initiative, 2022). When a company is disclosing information related to SASB aligned metrics,

it is always encouraged to have the data assured by an independent third party member (Sustainability Accounting Standards Board,
2022). The CDSB framework also recommends assurance, indicating "the methods and processes employed by an independent
third party to evaluate an organization’s public disclosures about its performance as well as underlying systems, data and processes
against suitable criteria and standards in order to increase the credibility of public disclosure" (Climate Disclosure Standards Board,
2022).
The TCFD Framework requires reporting on GHG emissions in scope, 1, 2, and 3 as well as the climate-related risks involved (CDP
Disclosure Insight Action, 2022). The SASB Framework also highlights the importance of disclosing climate risks in reports
(Sustainability Accounting Standards Board, 2022). These risks are also related to GHG emissions for an organization's scope 1, 2,
and 3 categories as outlined in the TCFD framework (Sustainability Accounting Standards Board, 2022). The same GHG reporting
principle for scope 1, 2 and 3 emissions is applied to the GRI Framework, except it does not require reporting on climate risk (Global
Sustainability Standards Board, 2016). The CDSB framework requires the disclosure of climate risks (Climate Disclosures Standards
Board, 2022). GHG emissions is also a requirement for CDSB reporting in order to improve communications with investors regarding
climate change (Climate Disclosure Standards Board, 2022).
ESG reporting refers to the corporate reporting initiative of disclosing Environmental, Social, and Governance issues throughout a
company (Arvidsson & Dumay, 2021, p.1092). An ESG report "enables the company to be more transparent about the risks and
opportunities it faces" (PwC, 2022). The United Nations Sustainable Development Goals encourages everyone, including companies
to act on ESG issues like climate change (Arvidsson & Dumay, 2021, p.1092). As Barker and Eccels note, this is because "the world
has changed dramatically, and companies must both plan for potential ESG-related issues and meet the demand for comprehensive
corporate ESG performance information" (Arvidsson & Dumay, 2021, p.1092). Investors and shareholders initiate the demand for
ESG accountability from companies in order to understand how they are playing their part in sustainable development (Arvidsson &

Dumay, 2021, p.1092). This is becoming increasingly important for investors, as stated by Edelman and Fink, that climate risk is also
equivalent to investment risk (Arvidsson & Dumay, 2021, p.1092).
The 'Environmental' aspect in ESG performance refers to the use of energy and resources from a company, which includes scope 1-
3 emissions (Sphera, 2022). This includes energy efficiency, climate change, carbon emissions, biodiversity, air, water quality,
deforestation, waste management (Sphera, 2022). The 'Social' category refers to the people and culture within a company, and how
it impacts the broader community which includes diversity, gender inclusivity, data protection, employee engagement, customer
satisfaction, and privacy (Sphera, 2022). Lastly, 'Governance' refers to "a company’s internal system of controls, practices,
procedures, and how an organization stays ahead of violations. It ensures transparency and industry best practices and includes
dialogue with regulators" (Sphera, 2022). ESG reporting is important because according to Sphera, companies that provide ESG in
their annual reporting perform strongly in this regard and "have demonstrated higher returns on their investments, lower risks and
better resiliency during a crisis" (2022).
1.5 Key Takeaways
1. There are a wide variety of sectors that use each framework, meaning that each one will provide valuable standards for LL to
use when disclosing their climate risks and GHG emissions reporting.
2. Pursuing a framework that is more sector-specific such as SASB or TCFD will allow a healthcare organization like LL to
perform an analysis that is more specific in detail based on their operations and associated GHG emissions.
3. Each framework appears to have its standards easily accessible through online resources, however, it is recommended to
obtain third party verification for organizations to audit their climate risk assessment and GHG emission disclosures. It is very
useful to have a team analyze the accuracy of the collected data, and present it in a way that additional staff members at LL
can look over and make the information available to the public as well.

2.0 Organization Assessments

This section of the report consists of four examples of organizations and how they each approach their own climate risk assessment.
This includes each company both identifying and outlining what climate-related risks, impacts, and opportunities they have found to
be the most apparent for their business.
2.1 TD Canada
TD Canada Trust currently reports using the GRI and SASB framework. TD also follows the TCFD framework to identify and define
their climate-related risks, opportunities, and the potential impact of each risk (see tables 2 and 3 below). "TD is headquartered in
Toronto, Canada, and was founded in 1855" (Grgurich, 2018). Many TD clients are institutions and insurance companies, including
large pension plans, community foundations and investors (TD Asset Management, 2022). "The company offers a full array of
personal, corporate, investment banking and insurance services to about 27 million customers globally.” TD is the safest bank in
Canada according to Global Finance and one of Canada's best employers according to Forbes (ADV Ratings, 2022).
TD bank "is the largest bank in Canada in terms of total assets. It employs over 89,000 people and operates through around 1,000
retail branches and 3,440 ATMs in Canada” (ADV Ratings, 2022). TD is also the 14th largest bank-holding company in the United
States and runs approximately 1,315 branches from Maine to Florida (Grgurich, 2018). TD operates in regions worldwide. According
to the organizational profile of TD, it has around 57,577 employees in Canada, 28,353 employees in the United States, 1,034
employees in Europe, and 145 employees in Asia-Pacific (2022). The top shareholders of TD bank include RBC Global Management
Asset Inc, 1832 Asset Management LP, The Vanguard Group, Inc, BMO Asset Management, RBC Dominion Securities Inc,
Mackenzie Financial Corp, and CIBC World Markets, Inc (Cable News Network, 2016).

TD updates their TCFD report on an annual basis (TD, 2022). The Risk Committee of the Board and the Corporate Governance
Committee of the Board are involved in the risk assessment process (TD, 2022). The Risk Committee oversees management of the
Bank’s risk profile, including climate-related physical and transitional risks (TD, 2022). The Risk Committee continues to monitor
climate risk as a top and emerging risk and how it may affect them (TD, 2022). "This Policy and associated risk assessment
procedures are updated based on input from various sources, including internal and external industry experts and consultancy and
research firms as well as generally accepted international agreements and standards in providing industry-standard risk guidance"
(TD, 2021). TD's plan going forward is to work closely with their sustainability professionals to continue refining and embedding these
disclosures reporting (TD, 2018).

Table 2. TD - Climate-Related Risk, Impacts, and Opportunities

TD - Identified Risks & Impacts
Risk Potential Impact
Credit Poor climate risk management resulting in missed payments from borrowers
Insurance Damage from changing climate patterns resulting in increased liability claims
Market Variation in equity prices, commodity prices and credit spreads resulting in unpredictable and volatile markets
Operational Extreme weather events resulting in physical damage to operations
Reputational Inability to meet changing customer expectations for climate-related products and services, resulting in negative stakeholder perception
Legal New laws and regulations resulting in Increased risk of climate-related litigation
TD - Identified Opportunities
Opportunity Potential Impact
Resource Cost savings resulting from more energy efficient operations and better resource management
Efficiency
Products & Increased revenue from new climate-related products and services such as extended water and fire damage coverage or sustainability
Services consulting
Markets Increased investment in new and emerging markets such as green buildings and electric vehicle infrastructure

TD defines their top 3 climate-related risks and opportunities, outlining the category, time horizon, likelihood of occurrence and the
magnitude of impact. Refer to the bottom of Table 3 for the scales TD uses for their time horizon, likelihood and magnitude.
Table 3. TD - Top 3 Climate-Related Risks and Opportunities

TD - Top 3 Risks
Risk Category Time horizon Likelihood Magnitude
Energy costs Transitional (Market) Short (1-3 years) Likely Low
Extreme weather Physical (Operational) Medium (3-5 years) Likely Medium
consumer awareness Transitional (Reputational) Current Likely Low to medium
TD - Top 3 Opportunities
Opportunity Category Time horizon Likelihood Magnitude
More efficient buildings Resource efficiency Short (1-3 years) Certain Low
Customer preference for low carbon products and services Products and services Current Likely Medium
Access to new and emerging markets Markets Current Very likely Low
Scales used Time horizon Likelihood Magnitude
The following scales were used by TD to categorize both their risks and opportunities Current Likely Low
Short (1-3 years) Very likely Medium
Medium (3-5 years) Certain High

2.2 Roche Holding AG
"Roche Holding AG develops and manufactures pharmaceutical and diagnostic products. The Company produces prescription drugs
in the areas of cardiovascular, infectious, autoimmune, respiratory diseases, dermatology, metabolic disorders, oncology,
transplantation, and the central nervous system" (Bloomberg, 2022). Roche develops, produces, and distributes medicines and
medical equipment, particularly diagnostic instruments and tests (Cleverism, 2022). The main headquarters are based in Basel,
Switzerland with services provided worldwide (Cleverism, 2022). Roche Holding AG is the parent company of Roche (F. Hoffmann-
La Roche, 2022).
Through its focus on both diagnostics and pharmaceuticals, Roche provides personalized healthcare options to patients around the
world, offering a diagnostic strategy for every medicine it develops (Cleverism, 2022). "Roche does not sell directly to retail
customers, and has as its two main customer segments healthcare organizations and laboratories" (Cleverism, 2022). "Roche sells
both its pharmaceutical and its diagnostic products to healthcare organizations, such as hospitals, clinics, and pharmacies"
(Cleverism, 2022). These organizations have different purchasing profiles. For example, hospitals would usually purchase both
medicines and complex diagnostic equipment, while pharmacies would purchase medicine and diagnostic equipment that is suitable
for home use." Laboratories in hospitals are also key customers for Roche’s diagnostic division, along with biomedical firms, through
licensing of its products and technologies (Cleverism, 2022).
Roche performs an annual Climate Risk Assessment report and has established a Corporate Sustainability Steering Committee and
a Corporate Sustainability Operations Committee, both made up of members from all parts of the company (Roche, n.d.). They
coordinate the sustainability strategies and activities throughout the company, including matters related to climate risk (Roche, n.d.).
According to Roche, "A separate team of professionals in global procurement is managing the climate strategy and action in the

supply chain. They closely partner with our business critical suppliers and service providers" (n.d.) Several grass-roots organizations
within Roche propose and implement numerous ideas and projects to reduce their greenhouse gas emissions (Roche, n.d.).
Roche currently reports using the GRI and they follow the TCFD framework to identify their climate-related risks. Roche takes a
scenario-based approach to determine their climate-related risks. Roche identifies 6 climate-related risks and 2-3 scenarios they
believe are most likely to occur as a result of each risk. For each scenario, Roche identifies the potential impacts to their business,
the overall level of risk and the mitigation strategies they will use.
The level of risk is determined by figuring out the potential financial loss associated with each risk as a percentage of Roche’s total
sales. In 2020, Roche had sales totalling $58.32 billion CHF (Swiss Franc) or $64.66 billion CAD. A very low risk indicates a financial
loss of less than $10 million CHF (6.9 million CAD). A low risk indicates a financial loss between $10 million CHF ($6.9 million CAD)
and 100 million CHF ($138.9 million CAD). For the purpose of this report, the estimated cost of each risk has been converted from
CHF(Swiss Franc) to CAD (Canadian Dollar). "Roche is the third largest biomedical company in the world, and enjoys the trust of
healthcare institutions and regulators around the world (for example, the US FDA)" (Cleverism, 2022). "As on December 2019,
Roche Holding has 97,735 employees, 29 research and development sites in Pharmaceuticals and Diagnostics worldwide, 23
manufacturing sites in Pharmaceuticals and Diagnostics worldwide" (Value today, 2022).
Table 4 shows Roche’s scenario analysis for each risk, outlining the potential impact, level of risk and mitigation strategies. Roche
claims to see no significant opportunities in the next 5-15 years. Long term, they have addressed the high likelihood of increased
need for medicinal and diagnostics services as a significant business opportunity for their company.

Table 4. Roche Holdings AG - Climate-Related Risk Scenario Analysis

Roche - Scenario Analysis
Risk Scenario Potential Impact Level of risk Mitigation
Increased Greater facility cooling Increased energy Very low Energy efficient buildings, internal regulation,
temperatures demand consumption, higher (<$6.9m) energy recovery
energy bill
Reduced employee Estimated 10% decrease in Low Regulating indoor climate conditions
productivity productivity (<$138.4m)
Emergence of new diseases Estimated 10% decrease in Low Ensuring employee health through regulating
causing employee illness productivity (<$138.4m) facility temperatures
Increased water Higher demands for cooling Estimated 10% higher Very low Energy and water efficient utility infrastructure,
temperature or heating utility bill (<$13.8m) energy recovery
Water too warm for cooling Additional investment Very low Innovative and efficient technologies
needed (<$13.8m)
Heavy rainfall Flooding / landslides, damage Business interruption Very low Building new facilities in low-risk areas
to buildings / transportation resulting loss of revenue (<$13.8m)
routes
Flooding / landslides, damage Supply chain interruption, Low Careful selection of supervision of suppliers
to supplier buildings / resulting in business (<$138.4m)
transportation routes interruption and loss of
revenue
Water pollution Additional investment Very low Regular water quality checks
needed (<$13.8m)

Roche - Scenario Analysis
Risk Scenario Potential Impact Level of Mitigation

risk
Droughts Water shortage Higher cost for water, delays in Very low Energy efficient buildings, internal
product manufacturing (<$13.8m) regulation, energy recovery
Wildfires damaging buildings Business interruption resulting in Low Increased water recycling processes
and transportation routes loss of revenue (<$69.2m)
Wildfires damaging supplier Supply chain interruption resulting Low Careful selection of supervision of
buildings and transportation in business interruption and loss (<$69.2m) suppliers
routes of revenue
Severe Damage to buildings and Business interruption resulting in Low Energy efficient buildings, internal
storms transportation routes loss of revenue (<$138.4m) regulation, energy recovery
Damage to supplier buildings Supply chain interruption resulting Low Careful selection of supervision of suppliers
and transportation routes in business interruption and loss of (<$138.4m)
revenue
Government Increased carbon tax Increased cost of carbon Low Energy efficient operations, substitution of
Regulation emissions (<$138.4m) fossil fuels with renewable energy sources
Ban of certain carbon emitting Increased cost for reconstruction Low Proactively implementing sustainable
technologies of utilities (<$138.4m) technologies

2.3 Cardinal Health
Cardinal Health provides a range of pharmaceutical and medical products and services, primarily serving customers in the
pharmaceutical sector (Cleverism, 2022). The Company’s customers can be organized into two core categories which are retail and
distribution customers, including various grocery stores, retail pharmacy chains, specialist medical and pharmaceutical distributors,
pharmacy service providers, and other commercial retail businesses; and medical and healthcare Customers, including healthcare
facilities such as hospitals and clinics, medical research and laboratory companies, ambulatory surgery centres, and other healthcare
providers (Cleverism, 2022). "Cardinal Health is now one of the largest pharmaceutical distribution companies in the world,
controlling a substantial share of the domestic US market" (Cleverism, 2022).
Cardinal Health organizes its operations into the business segment of pharmaceutical, which distributes branded and generic
pharmaceutical, specialty pharmaceutical, over-the-counter healthcare, and consumer products in the US, as well as providing other
related services such as pharmacy management services. (Cleverism, 2022). It also operates in the medical segment which
distributes a broad range of medical, surgical and laboratory products and provides services to hospitals, ambulatory surgery
centres, clinical laboratories and other healthcare providers in the United States, Canada, and China (Cleverism, 2022). "Robert D.
Walter is the largest individual Cardinal Health shareholder, owning 4.50M shares representing 1.62% of the company"
(WallStreetZen, 2022).
Cardinal health performs an annual Climate Risk Assessment report (Cardinal Health, 2022), noting that "multiple teams are
responsible for managing climate-related activities and initiatives, with oversight by our Board of Directors (Board). The Board’s
Nominating and Governance Committee has oversight of our environmental, social, and governance (ESG) activities, including
environmental sustainability and climate-related matters." (Cardinal Health, 2022). The ESG Steering Committee has also been
tasked with responsibility of understanding and communicating climate-related risks and opportunities to senior leadership and the

Board. The ESG Steering Committee has formed an Environmental Subcommittee to focus on coordination and recommendations
throughout the enterprise regarding environmental projects and investments that emphasize business benefit, costs and
sustainability (Cardinal Health, 2022).
Cardinal Health reports their sustainability performance using the SASB framework and they follow the TCFD framework to identify
their climate-related risks and opportunities.
Cardinal Health defines four climate-related risks and three climate-related opportunities that are relevant to their business and
operations, outlining each risk and opportunity with the category and time horizon, potential impacts, likelihood of occurrence and the
magnitude of impact. Refer to the bottom Table 5 for the scales Cardinal Health uses for their time horizon, likelihood and magnitude.

Table 5. Cardinal Health - Climate-Related Risk and Opportunity Assessment

Cardinal Health - Climate Risk Assessment
Risk Risk Type Potential Impact Likelihood Magnitude
Increased severity and frequency of Physical Indirect increase in operating costs Likely High
extreme weather events and floods (1-2 (Acute)
years) Risk to direct operations and supply chain
upstream/downstream
Changes in precipitation patterns and Physical Increase in costs from flooding damage Likely Medium
extreme variability in weather patterns (Chronic)
(5-10 years) Dramatic temperature changes that deteriorate
the foundations of facilities, paving, and parking
lots
Structural damage from potential hail storms
Changing customer behaviour (1-2 Transitional Decreased revenue due to reduced demand for Likely Medium
years) (Market) markets
May not be able to retrieve depth of

environmental impact information demanded by
consumers for goods manufactured outside of
operational control
Increased likelihood and severity of Physical May have adverse effects on operations on the Likely Medium
wildfires (1-2 years) (Acute) west coast.
Increase the amount of insurance claims for

products for real estate costs due to fire
damages

Cardinal Health - Potential Opportunities
Opportunity Opportunity Potential Impact Likelihood Magnitude

Type
Resource development and move to Operations Reduce indirect operations costs by installing Very Likely Medium
more energy efficient buildings (3-5 (Resource most efficient technology in warehouses and
years) Efficiency) trucks
Leverage improved technologies in operations
Access to new markets (current) Operations Increased revenue from access to new and Likely Medium
(Markets) emerging markets
Use of more efficient production and Upstream Increased revenue through access to new and Likely Medium
distribution processes (3-5 years) (Resource emerging markets (e.g, partnerships with
Efficiency) governments and banks
Scales used Time horizon Likelihood Magnitude
The following scales were used by Cardinal Health to Current Very Unlikely Low
categorize both their risks and opportunities Short (1-2 years) Unlikely Medium
Medium (3-5 years) Likely High
Long (5-10 years) Very likely
Certain

2.4 Pfizer
"Pfizer is a pharmaceutical corporation with its headquarters in New York City, United States. It was founded in 1849 by Charles
Pfizer and Charles Erhart in Brooklyn, New York" (Statista, 2022). Pfizer sells its products to a range of customers that are active
within the healthcare and medical sector. The Company’s prescription pharmaceutical products and consumer health products are
sold principally to wholesalers, distributors as well as to retailers, hospitals, clinics, and governmental agencies (Cleverism, 2022).
Pfizer currently produces pharmaceutical products for a wide range of medical sectors such as immunology, cardiology, and
neurology (Statista, 2022). "In collaboration with a German-based biotechnology company, Pfizer developed an mRNA-based
vaccine against COVID-19. The Pfizer-BioNTech vaccine has been administered to millions of people in the U.S. and abroad, and
sales may increase further as the U.S. and other nations administer booster shots to further protect people from the virus"
(Investopedia, 2022).
In 2021, Pfizer employed approximately 79,000 people all over the world (Statista, 2022). Pfizer has major manufacturing facilities
located in India, China, Japan, Ireland, Italy, Belgium, Germany, Singapore, and the US. The company provides its products in North
America, South America, Asia-Pacific, Australia, Europe, Africa and the Middle East. The main headquarters of Pfizer are in New
York (GlobalData, 2022).
The top shareholders of Pfizer are Frank A. D'amelio, John Douglas Young, Mikael Dolsten, Vanguard Group Inc., and BlackRock
Inc Frank A. D'amelio "is the chief financial officer and executive vice president of Global Supply. He oversees the company's
corporate finance functions. This includes audit, treasury, tax, insurance, business finance and analytics, and more" (Johnston,
2021). John Douglas Young is the company's group president and chief business officer (Johnston, 2021). Mikael Dolsten "is Pfizer's

chief scientific officer and president of Worldwide Research, Development and Medical (WRDM). His focus is on developing scientific
breakthroughs in small-molecule medicines, biotherapeutics, gene therapies, and vaccines" (Johnston, 2021). Pfizer participates in
an annual ESG performance report (Pfizer Inc., 2022) "Pfizer has integrated climate change into divisional and enterprise risk
management processes, which includes a periodic review of risks that could be material to the company" (Pfizer Inc., 2022). "Climate
change risks, including physical, regulatory, reputational and market and technology, are evaluated by a team of relevant program
leaders and subject matter experts from EHS, Global Engineering, Business Resilience, Corporate Affairs, Compliance, Legal and
Audit" (Pfizer Inc., 2022).
Acute and chronic physical risks related to climate change are managed through Pfizer’s insurance and business continuity teams at
the enterprise and local levels. Members from those teams participate in the risk review process which addresses business
continuity/resiliency and provides their opinion on the potential impact of physical risks related to climate change (e.g., severe
weather events, flooding) (Pfizer Inc., 2022). Pfizer engages with stakeholders to explore markets for environmentally preferable
products and works through global trade associations to encourage reduction of GHG emissions to align with scientific consensus of
the IPCC and the Paris Agreement (Global Policy & Public Affairs, Pfizer Inc., 2022). Reputational risks are managed through their
process to transparently disclose information related to the climate change program and engage with key stakeholders to help lead
the conversation on voluntary actions that companies can take to address their greenhouse gas emissions (Pfizer, 2022).
Pfizer follows the TCFD framework to identify their climate-related risks and opportunities. Pfizer defines their top three climate-
related risks and opportunities outlining each risk and opportunity with the category and time horizon, potential impacts, likelihood of
occurrence and the magnitude of impact (MOI). Refer to the bottom of Table 6 for the scales Pfizer uses for their time horizon,
likelihood, and magnitude.

Table 6. Pfizer - Climate-Related Risk and Opportunity Assessment

Pfizer - Climate Risk Assessment
Risk Risk Type Potential Impact Likelihood MOI
Increased pricing of GHG Transitional Increased operating costs resulting from higher Very Likely Medium
emissions (5-10 years) (Policy and compliance costs and increased insurance premiums
Legal)
Increased severity of Physical Reduced revenue from decreased production capacity Unlikely Medium
extreme weather events (Acute)
(5-10 years)
Negative stakeholder Transitional (Reputation) Reduced revenue from decreased demand for services Likely Low
perception (5-10 years)
Pfizer - Potential Opportunities
Opportunity Opportunity Type Potential Impact Likelihood MOI
Development of Customer Increased revenue resulting from new solutions to Likely Low
innovative new products (Products and adaptation needs (e.g, health related products and
and services (5-10 years) Services) services to combat climate-related illness, insurance risk
transfer products and services)
More efficient production Operations Reduced operating costs resulting from more resource Certain Medium
and distribution (Resource Efficiency) efficient processes (e.g, reducing greenhouse gas
processes (current) emissions through electric vehicles and and better waste
management practices)
Use of public sector Customer (Markets) Increased revenue through access to new and emerging Very Likely Medium
incentives (5-10 years) markets (e.g, partnerships with governments and banks

Scales used Time horizon Likelihood MOI
The following scales were used by Pfizer to Current Very Unlikely Low
categorize both their risks and opportunities Short (0-5 years) Likely Medium
Medium (5-10 years) Very likely High
Long (10-30 years) Certain
2.7 Summary Table

The following table summarizes transitional risks, physical risks, impacts and opportunities identified by each of the four
organizations mentioned above.
Table 7. Risk and Opportunity Assessment Summary of All Companies

Climate-related Impacts and Opportunities
Company Climate-related Risk Impacts Opportunities
TD Regulatory and Legal Risks: Increased chance of climate-related litigation 1) Impact of extreme weather on 1) More energy efficient
and Introduction of new legislation physical locations and operational buildings
expenses
Credit Risk: Customers and clients who poorly manage their own transitional 2) Customer preference for
and physical risks will face decreased credit rating 2) loss of customers due to rising low carbon products and
insurance premiums services
Insurance Risk: Insurance products where claims liabilities are exposed to
changing climate patterns 3) loss of new and existing 3) Access to new and
customers due to poor emerging markets
Market Risk: Fluctuation in commodity prices, equity prices and credit spreads environmental engagement and
sustainability initiatives
Reputational Risk: Stakeholder perception of TD’s ability to contribute to
fighting climate change
Physical Risk: Increased extreme weather events

Climate-related Impacts and Opportunities
Company Climate-related Risk Impacts Opportunities
Roche Government Regulations: Increased carbon tax, ban of certain carbon 1) Additional investment and 1) Increased need for
Holding emitting technologies higher utility needed medicinal and diagnostic
AG services as a significant
Physical Risk: More extreme temperatures and humidity, higher water 2) Business/Supply chain business opportunity for
temperature, heavy rainfall, drought, and severe storms interruption and revenue loss their company long-term
3) Increased cost of carbon

emissions
Pfizer Policy Risk: Increased pricing of GHG emissions 1) Reduced revenue from 1) Development of low
decreased demand for services emission technology
Market Risk: Increased stakeholder concern or negative stakeholder feedback
2) Increased operating costs 2) Growing revenue through
Physical Risk: Increased severity of extreme weather events resulting from higher compliance new climate-related
costs and increased insurance solutions
premiums
3) Use of public sector
3) Reduced revenue from incentives
decreased production capacity
Cardinal Market Risk: Changing customer behaviour 1) Decreased revenues due to 1) Resource development
Health reduced demand for products and move to more energy
Physical Risk: Increased severity and frequency of extreme weather events efficient buildings
and floods, such as changes in precipitation patterns and increased likelihood 2) Indirect increase in operating
and severity of wildfires costs from changing patterns in 2) Use of more efficient
extreme weather events production and distribution
processes

2.8 Key Takeaways
This section discusses the key findings from the review of frameworks and organizations, summarizing notable differences between
frameworks and providing general recommendations to LL. Furthermore, similarities in risks and opportunities identified among the
four organizations provides insight into the potential areas of concern for LL.
The four organizations examined (TD, Roche, Pfizer, Cardinal Health) all use the TDFD framework to identify their climate risks and
opportunities. Using the TCFD framework in conjunction with LL’ current GRI reporting will create a more comprehensive reporting
process. The TCFD will allow LL to expand on the various categories within the GRI framework by disclosing climate-related risks
and opportunities associated with each category. This will be an excellent starting point for providing greater transparency with
stakeholders and strategizing ways to mitigate risks while capitalizing on opportunities. In addition to the TCFD framework, TD and
Cardinal Health also use the SASB framework. Using the SASB framework for reporting could provide additional value through
increased specificity of standards for the healthcare delivery industry, which LL is considered to be a part of, based on the SASB
classification of different sectors.
There is a lot that can be learned by looking at the sustainability reports from these four companies and how they identify their
climate-related risks and opportunities. The following are common trends and key takeaways from TD, Roche, Pfizer and Cardinal
Health in regards to their main concerns and projected time horizons:
1) Changing customer behaviour is an increasing concern amongst corporations, especially due to the developing trend of
conscientious consumerism and preferences to only support businesses that take action to reduce their carbon footprint.

2) Businesses are addressing the increase in carbon taxing and the ban of certain carbon emitting technologies to reduce GHG
emissions in order to develop alternative sustainability strategies going forward.
3) Costs of operations and utilities will likely increase due to chronically changing climate conditions including the rise in mean
temperatures. This also opens the opportunity for new products or services developed through innovation for healthcare
organizations to provide to their patients.
4) It appears that each reviewed company is most concerned about the increased frequency and severity of extreme weather
events happening within the next 5-10 years, as well as the potential infrastructure and transportation route damage that may
be caused by this. This includes mainly changes in precipitation patterns. It is important for LL to note that the severity and
time horizon of storms will likely increase throughout each province where operations are located. This means that
precautionary measures should be taken, considering the increasing likelihood of occurrence in the next 5-10 years.
5) Another trend shared between each organization is the risk of increased stakeholder concern and the threat of losing
stakeholder support for failing to reduce their carbon footprint. This is noted by Pfizer to likely occur as soon as 1-2 years from
now, due to the rise in conscientious consumerism. As a result, it is important for LL to not only address ways in which they'll
mitigate the climate-related risks that pose a threat to certain aspects of their business, but to also incorporate strategies that
can be used to market to consumers the level of effort that they are undergoing to become more sustainable throughout the
company.
6) LL can learn that having a team dedicated to ESG initiatives and climate risk management throughout the company such as a
board of directors is very useful as it will help to properly analyze and review risks that require mitigation strategies to be put

in place. It is also beneficial to have a team of people who are knowledgeable on environmental sustainability and climate-
related factors in order to communicate the climate-related risks and opportunities to senior management.
7) When comparing the climate risk assessment conducted by both Pfizer and TD, Pfizer outlines each of their risks and
includes the time horizon, likelihood, and magnitude of impact whereas TD only outlines the risk itself. Incorporating each of
those characteristics as outlined by Pfizer is useful, as it allows a company to review their report and decide which risks they
should prioritize. This is based on certain risks that have a higher likelihood and/or magnitude of impact. Cardinal Health also
provides this information to allow analysts to understand what will affect the company first, in relation to climate change
effects and environmental policy.

3.0 Medium and Long-Term Risks

Climate change and rising carbon emissions are causing the Earth to warm in a historic period of cooling. With climate change
comes physical and transitional risks such as sea-level rises, extreme heat waves, and new policies limiting society and businesses'
impact on the environment. As wages remain stagnant and climate change impacts businesses and poses risks in the form of a
higher cost of living, the average Canadian will have less disposable income. With less disposable income, businesses across the
board will be negatively impacted financially. As a result, impacted businesses may make budget cuts or fire staff to retain profits,
this type of reaction could impact the amount that businesses are willing to spend on health insurance coverage for employees to
save costs. Consequently, this type of chain reaction could influence the number of patients visiting a LL patient service center.
Therefore, identifying the most punishing risks to LL environmentally and thereby financially is crucial for figuring out ways to act in
an environmentally responsible manner while driving the cost of services down to remain competitive and retain customers in times
of uncertainty.
To help LL address the issue of forward-looking environmental risks and creating a sustainable future, below is a table of 5 medium
and long-term (5-10 years) risks in the transitional and physical risk categories. As seen below in Table 8, five risks are explored and
identified and further discussed in section 5 of this report. To get a more detailed look at the full list of all 24 medium and long-term
risks, please refer to the LL Risk Assessment Excel Sheet, alternatively to get a quick snapshot of all 24 climate-related risks, refer to
all the figures within the Appendix section.
3.1 Transitional Risks

Transitional risks (policy, market, technology) are the risks for LL that may occur as Canada shifts toward a low-carbon economy.
1) Policy - How policy actions and climate-related litigations will impact LL

2) Market - How climate change will impact the consumers mindset and preferences for how they conduct business and
interact with companies
3) Technology - How climate change will create technology risks by means of displacing carbon intensive or environmentally
damaging equipment
3.2 Physical Risks
Physical risks (acute, chronic) are those associated with climate and weather patterns.
1) Acute - Severe, short-term, event-driven, and extreme weather events
2) Chronic - How long-term climate patterns will impact LL

Table 8. Sample of LL Risk Assessment

LL Risks & Impacts
Transition Risk Potential Impact
Policy Carbon Pricing Rise in the price of per ton of carbon will increase expenditures on carbon and products from suppliers that are carbon
intensive. This means LL will have to increase the prices charged to consumers to keep the same level of profit for the
same level of business. This could result in customers finding alternative ways to meet their healthcare needs (see the
spreadsheet for more detail).
Market Environmental Lack of environmental engagement could reduce the friction of switching costs for customers, as customers may seek out
Engagement a more sustainable healthcare provider. This would impact the growth and customer base of LL and reduce potential
revenues (see the spreadsheet for more detail).
Technology Unsuccessful Poor investment will result in wasted time (cost will vary by each unsuccessful investment), the opportunity cost of the
investment in capital spent, and may reflect that LL is not making sustainable investments in technology (see the spreadsheet for more
technology detail).
Physical Risk Potential Impact
Acute Heat Waves An unprepared response to a heat wave could result in damage to infrastructure such as parking lots, impacts to staff
health such as heat stroke and exhaustion, high increases in operational costs (i.e. cooling), and damage to common
travel routes, requiring longer commutes for patient samples. All examples have negative impacts financially for LL,
including staff and reputational impacts, if a heat wave is met with unprepared and poor action. Heat waves could impact a
customer’s willingness to leave their home to visit a LL and result in a missed opportunity for revenue (see the
spreadsheet for more detail).
Chronic Sea-level rise Sea-level rise brings on risks such as relocation of buildings, excess precipitation and flooding in nearby areas. Impacts
from sea-level rise may force LL to shut down and relocate certain buildings. This will have a ripple effect on the patient
intake for the duration that a building is being relocated. This will also impact staff's commute time and could make for a
longer commute to the newer building as it will be more inland. Additionally, if staff members are government mandated to
relocate due to being in a high-risk area, it may no longer be feasible for them to work at the same LL location or
discontinue their employment with LL altogether (see the spreadsheet for more detail).

4.0 Categorical Risks

This section outlines five categories that were used to determine how each evaluated risk will impact LL business operations.
4.1 Infrastructure and Building System Risks

Infrastructure and building system risks refer to the possible impacts that climate change could pose on the physical structure of LL’
facilities. Increasing climate change impacts are forcing enterprises to rethink their buildings’ infrastructures and building systems to
better adapt to physical risks in the future (TCFD, 2017). An adaptive action includes retrofitting their building facilities to improve
energy-consuming systems, such as their windows and doors, ventilation systems and insulation (Canada, 2019). As climate change
becomes more strenuous on physical infrastructure and the availability of building materials, businesses must become more mindful
of the increase in capital costs associated with increased climate change impacts and transition to greener-cost effective strategies to
combat climate changes such as extreme heat (TCFD, 2017).
4.2 Market Impacts or Service Interruption

Climate-related market and service interruption risks may be severe in the coming decade. Market and service interruption risks
include climate-related disruptions to the supply and demand for goods and services of a business (TCFD, 2017). As climate change
becomes more critical to business operations, consumers are predicted to purchase less from companies that do not focus on
climate-related initiatives in and outside of their business (Close, 2021). On Top of demanding more sustainable products, climate
change will impact the way that raw materials are extracted and may increase the difficulty of providing the same level of business at
a low cost (TCFD, 2017).

4.3 Financial Impacts

Financial impact refers to a loss of revenue resulting from climate-related risks. Failing to manage climate-related risks can result in
lost revenue in a number of ways. One of the most significant threats to LL’ financial well-being is service delays to operations and
suppliers resulting from extreme weather events such as floods and wildfires. Natural resource availability is another increasing
threat. With natural resources becoming more costly to extract, LL will need to spend more money to meet their operational needs.
Additionally, increased carbon pricing, waste disposal costs and water treatment costs will cause financial losses for LL and its
suppliers. Lastly, failing to adapt to the transition to a low carbon economy could damage LL’ reputation, decreasing demands for
services and ultimately limiting potential for financial growth.
4.4 Reputational/Environment Impacts

Reputational and environmental impacts are identified as a change in community or customer perceptions of LL contribution to a low-
carbon economy (TCFD, 2017, p.6). Impacts include a shift in consumer preference as well as increased stakeholder concern and
negative feedback (TCFD, 2017, p.10). As a result, this may cause reduced revenue from decreased demands for services,
decreased production capacity such as delayed planning approvals and supply chain interruptions (TCFD, 2017, p.10). This also
includes negative impacts on workforce management and planning a reduction in overall capital availability (TCFD, 2017, p.10).
4.5 Staff Impacts

A variety of both indoor and outdoor staff populations may be vulnerable to climate variations as temperatures fluctuate in the coming
years. Climate conditions can amplify existing health and safety issues and could lead to new unforeseen hazards. Staff may also be
exposed to weather and climate conditions that the public can elect to avoid (NIOSH, 2016). Impacts such as, layoffs, health &
safety, and minor legal implications towards LL are areas that were researched regarding their influence on staff. The magnitude and
frequency of climate-related impacts and hazards on staff is a prioritization that should be evaluated (Zayed, 2013).

5.0 Risk Matrix

While identifying the most effective way to visually communicate the findings and rationale used to develop the overall conclusion of
the climate risk for LL, both an impact and likelihood scale were created. These scales were used to score each of the climate-
related risks that were identified throughout the climate risk assessment. Through scoring each risk on both the impact and likelihood
scale, this will allow LL to identify the top prioritized risks over the next 5-10 years.
5.1 Rationale
Impact Scale: A 5x5 risk matrix was created to score each climate-related risk out of five in terms of the overall impact to LL
business. Following this, each risk and impact was multiplied by 25 to get an overall inherent risk score. Examples of both transitional
and physical risks were outlined from the full excel spreadsheet and can be seen there in greater detail. As seen below in Table 9,
the Impact Scale provides a visual example of the breakdown that exists for each climate-related risk and the categories that were
selected. Across the top of the scale, five categories are placed. These categories range from Infrastructure and Building System
Impacts, Financial Impacts, to Staff Impacts. It was essential that the categories used envisioned a wide representation of LL
business operations as a whole to ensure each risk was effectively ranked. These five categories are provided with a brief range of
descriptions ranging from ‘Very Low’ to ‘Very High’. Each climate-related risk has a different impact on each of the selected
categories, and therefore it was crucial to identify the corresponding rank. Once each climate-related risk was ranked on the impact
scale for each of the five categories, a likelihood rank was needed for the final inherent risk score.
Table 9. A 5x5 risk matrix created for LL in terms of ranking each climate-related risk to a specific impact category from a
very low to very high consequence to LL business.

Impact Scale
Infrastructure and
Building System Market Impacts or Service Reputation and
Score Impacts Interruption Financial Impacts Staff Impacts Environment Impacts
No impact or minor No impact or localized and/ No impact or minor financial Layoffs, injury, disability, or No impact or localized, short-
damage or temporary disruption to cost or minor increase in minimal individual legal actions term, negative impact on
business operations and operating expenses or implications public opinion
1 - Very Low
< $2 million services
<1 month service disruption < $2 million Staff Impacted: 0-50
Some impact or minor Some impact or localized Some impact or minor financial Layoffs, injury, disability, or Some impact or localized,
damage and/ or temporary disruption cost or minor increase in minimal individual legal actions short-term, negative impact
to business operations and operating expenses or implications towards LL on public opinion of LL
2 - Low
$2-5 million services
$2-5 million Staff Impacted: 51-100
1-3 month service disruption
Significant Localized and/or long-term Moderate financial cost or Layoffs, injury, disability, or Localized, long-term,
infrastructure damage disruption to business moderate increase in minor legal actions or negative impact on public
operations and services operating expenses implications towards LL opinion or some negative
3 - Moderate
$5-10 million regional coverage on LL
3-6 month service disruption $5-10 million Staff Impacted: 101-300

Major infrastructure Long-term disruption of asset Major financial cost or major Layoffs, injury, disability, or, Regional-national, short-
damage function or organizational increase in operating major legal actions or term, negative coverage
services reducing critical expenses implications
4 - High $10-14 million and/or regional services
$10-14 million Staff Impacted: 301-600
6 months - 1 year service
disruption
Major infrastructure Permanent termination of Extreme cost or extreme Layoffs, injury, disability, or Substantial regional-national
damage asset function or increase in operating class action legal actions and coverage with long-term
organizational services with expenses major, wide-spread impact and potential to affect
5 - Very high
> $14 million substantial impact implications stability of organization
> $14 million
Staff Impacted: 601-1000
Likelihood Scale: Likelihood is the possibility of a risk event occurring. The Likelihood scale used to score LL risks can be seen
below in Table 10. The Likelihood range identified is ‘Very Low’ to ‘Very High’. It was of utmost importance to understand LL
business operations so that the corresponding likelihood and timeframe were as accurate as possible. The two categories listed in
the first column provide the necessary description of each likelihood range option. Many risks are much more likely to occur and may
sit at a higher range compared to other risks only occurring annually. The impact and likelihood score of each climate-related risk
provides the required data for the overall inherent risk score. The scores for each risk are calculated by multiplying the likelihood
score by the consequence score to get an inherent risk score on a scale from 0-25. Examples of both transitional and physical risks
were outlined and can be seen in the full excel spreadsheet here.

Table 10: A risk matrix created for LL based on the likelihood of occurrence of a particular climate-related risk
Likelihood Scale
Score 1 - Very Low 2 - Low 3 - Moderate 4 - High 5 - Very high
Chance of
Occurrence <10% 10-30% 30-60% 60-90% >90%
Frequency Expected to occur Expected to occur once Expected to occur once in Expected to occur once Expected to occur
once within the next in the next 7 year the next 5 year period in the next 3 year period during the coming year
10 years period
5.2 Data Gaps
While conducting research and completing the climate-related risk assessment, data gaps became more prevalent. Unfortunately,
while measuring and scoring the impact of some of the climate-related risks, limitations existed due to the nature of having limited
data; for this reason, a list of over 15 data gaps are presented below for LL to consider when updating or making decisions based on
this climate-related risk assessment.
1. Not having access to a map that displays all LL locations makes it more difficult to understand which buildings, suppliers, and
travel routes are more likely to be impacted by specific climate-related risks in the next 10 years.
2. Limited supplier data can make LL susceptible to climate-related risks that suppliers face, which can impact LL if suppliers
raise prices or pause operations due to extreme weather events. Similarly, there is a lack of access to LL’ supplier relations
and their reliability on fossil fuels. This information would prove beneficial when choosing suppliers who will assist in the
transition to a low carbon economy and assist in reducing LL’ scope 3 emissions.
3. Number of employees at each facility and number of staff affected to warrant a “severe” risk rating would be useful.
4. Lack of identified climate-related risks from other companies, especially in the transitional category and sub-category
technological, made research difficult. This data gap is even more severe for the healthcare delivery service industry.

5. Knowing the findings from LL’ waste audits would allow us to make recommendations for the next steps regarding waste
diversion.
6. Knowing which processes at LL are the most water-intensive would allow for further research to see if there are opportunities
to reduce water usage for those specific processes.
7. Knowing exactly how water is used on-site will help identify opportunities. For example, if the labs have showers for
employees, that’s an opportunity for greywater reclamation. The ratio of water used for basic utilities (bathroom sinks and
toilets) vs. water used for analysis purposes could be useful information to determine opportunities related to water usage.
8. Data showing projected climate-related health impacts on metropolitan areas could be tremendously valuable for determining
strategies for service expansion.
9. Having access to a list of equipment LL uses would help determine what equipment can be donated versus what has to be
disposed of.
10. Knowing how natural gas is used at LL would be useful information to know for making recommendations. Knowing if natural
gas is used in building heating or perhaps used during sample analysis would have been helpful information.
11. A map of electric vehicle (EV) charging stations including proposed / to-be-built stations to optimize routes will help determine
a timeline for switching to EVs.
12. When planning ahead, it may prove beneficial to gain access to alternative LL’ transportation routes in response to wildfire
hotspots.
13. Data showing landscaped area vs. paved area at all 16 sites would help identify best sites for increasing permeability.
14. Having access to data showing where extreme events (floods, fires, storms etc) are most likely to occur would help coordinate
with patients, staff and suppliers and plan to minimize service disruptions and financial loss.
15. Having a list of exterior building materials for LL locations would be useful to determine the potential effects of freeze-thaw,
extreme wind and extreme precipitation on buildings.
16. LL reports solid waste disposal, but not electronic waste disposal. knowing more information on their E-waste would make
waste diversion recommendations easier.
17. Information on cost to send waste to a landfill, including electronic waste, could help quantify cost savings.
18. It is not made public how much plastic LL uses during its operations, so it is unclear exactly how government bans on plastics
will affect the company.

6.0 Climate-Related Opportunities

Climate-related risks produce opportunities related to resource efficiency and cost savings, low-emissions energy sources, new
products and services, access to new markets and resilience along the supply chain. Many of these opportunities will be equally
relevant to all LL locations and some opportunities will be more applicable to certain locations. This section discusses some of the
most significant opportunities. There are many more opportunities within each category (some fit into multiple categories), which are
discussed in the full excel spreadsheet.
6.1 Resource efficiency
There are significant opportunities to reduce operating costs by promoting more sustainable operations. Efficient water usage is a
major opportunity when it comes to resource efficiency. With the increasing threat of water scarcity and potential increase in cost to
use and discharge water, onsite water reclamation systems can be used for better water and energy efficiency. A recent study has
shown grey water reclamation from sinks used for toilet flushing to decrease water demand for toilets by up to 52% (Knutsson, 2020).
Additionally, rainwater harvesting systems have been shown to be capable of supplying up to 80% of water needed for flushing
toilets (Knutsson, 2020). Cost savings from these strategies will vary by province. Because certain processes at LL are very water
intensive, continued research to minimize water usage and optimize waste water treatment will be valuable. This will ensure LL is
able to adapt to potential changes to costs or policies related to withdrawing and discharging water and treating waste water.
6.2 Low-emission energy sources
In order to meet global emissions reduction goals, countries will need to shift a large percentage of their energy generation to low
emission alternatives. Solar panels are an excellent way for LL to supplement energy usage with renewable energy and decrease

fossil fuel demands. According to data provided by the government of Canada, the average commercial solar breakevens are
currently lower than the breakevens for purchasing electricity from a utility in Ontario and Saskatchewan (Ontario: 70%,
Saskatchewan: 94%) (Government of Canada, 2020). These breakevens are expected to decrease further as Canada transitions to
a low carbon economy.
Increased investment in renewable energy projects will aid in the transition to a low carbon economy and reduce LL' scope 2
emissions. This is particularly beneficial for Saskatchewan, where 83% of electricity is currently generated from fossil fuels (43%
natural gas, 40% coal) (Provincial and Territorial, n.d). This will result in cost savings as renewable energy costs continue to
decrease. Additionally, there is a government incentive that will cover up to 25% of the cost for solar projects in Saskatchewan and
Ontario (Incentives for going solar, 2021)
6.3 New products and services
There may be an opportunity for LL to expand its services as climate-related health complications increase. As the frequency of
flooding increases, it is possible that waterborne diseases will become more common. There is an opportunity for LL to offer their
services to people affected by flooding, by testing for waterborne diseases such as dysentary and cholera which can occur as a
result of flooding. Being prepared to accommodate patients who contract waterborne diseases will allow LL to take on more patients
and increase revenue. As the frequency of wildfires increases, there may be an opportunity for LL to offer their services to people
affected by wildfires, by testing for acute and chronic health issues related to exposure to wildfire smoke. Being prepared to
accommodate patients experiencing health issues from wildfire smoke will allow LL to take on more patients and increase revenue.

Being adequately prepared to test and diagnose patients in at-risk areas will increase revenue and ensure community members can
get help as quickly as possible.
6.4 Access to new markets
Capitalizing on climate-related opportunities can provide access to services, partnerships and markets that would not otherwise be
available. The electric vehicle market in particular will continue to become more accessible through programs such as the Incentives
Zero Emissions Vehicles Program (IZEV), which offers tax write-offs to businesses for switching to electric vehicles (Transport
Canada, 2022). Investment in electric vehicles and optimization of transportation routes will help LL reduce scope 1 emissions.
Based on 2020 courier mileage of 21,558,389 km, LL could expect to save an estimated $3,467,160.66 by switching to an all-electric
vehicle fleet. This calculation is based on average cost savings of $40,394 per 250,000km from takechargenl.ca. Savings may vary
between provinces. This opportunity will continue to become more feasible as electric vehicle infrastructure becomes more common.
6.5 Supply chain resiliency
Working with sustainable suppliers will be crucial to ensure success during the transition to a low carbon economy. The price of
natural resources and waste disposal is rising. Working with suppliers who are not heavily reliant on natural resources and suppliers
whose packaging is fully recyclable is an excellent opportunity to reduce costs and minimize scope 3 emissions. Working with
suppliers who are least at risk for service disruptions from climate-related events will also ensure that LL does not experience any
service delays or loss of revenue.

7.0 Top 5 Climate-Related Impacts

After conducting research among top climate-related reporting frameworks, researching how several other organizations report
sustainability information, and conducting a detailed risk assessment of over 20 climate-related risks, impacts, and opportunities
relevant to LL, there are 5 risks which pose to be the most consequential and likely over the next 10 years. The 5 risks most relevant
to LL are highlighted in Table 11 and outlined at the end of this section in Figure 1.
Table 11: A table listing the top 5 climate-related risks relevant to LL in the next 10 years
Top 5 climate-related Impacts
Climate- Most Severe Impact Category and Rationale Inherent Risk

Related Risk Score /25
Flooding Flooding may cause severe infrastructure and building system impacts including damage to lower floors in facilities 15
and the prevention of patients and staff being able to access certain locations due to the closure of roads along
common travel routes. It also poses the risk of closing off supply chain routes and delaying the delivery of patient
sample testing.
Climate The possibility of climate change increasing the cost of living may alternate the way that employee security is viewed 12
Inflation by staff. As a result, a protest regarding the demand to be unionized may occur amongst staff at LL, likely causing a
major service disruption for the business. A steady rise in climate inflation will also lead to increased expenses of
resources and further stakeholder involvement with LL business operations.
Storms Storm induced power outages can lead to a location temporarily closing down until power can successfully be 12
restored and could last anywhere from minutes to a couple days or weeks. Power outages can further lead to loss of
customer data and improper storing of client samples which could result in minor legal action. The impact of pipes
freezing from lack of heating and bursting when the heat is restored, can result in expensive repair costs. Damage to
building exterior such as windows, parking lots, vehicles, and customer assets (cars in parking lots), resulting in a net
negative financial impact for LL.

Top 5 climate-related Impacts
Climate- Most Severe Impact Category and Rationale Inherent Risk

Related Risk Score /25
Natural The potential increase in difficulty from extracting natural resources as well as limited resource availability will mean 10
Resource that the costs of goods needed to provide services at the same capacity will likely rise substantially. The ability to
Availability expand to new locations will also become more costly as the limited availability of resources will cause real-estate
prices to increase.
Climate New mandates on the way that businesses operate related to a global health pandemic or climate change events will 9
Influenced result in a substantial market and service interruption due to staff reductions and supply chain disruptions. Possible
Legislative climate-related mandates may include accountability of net-zero emissions law, eliminating single-use plastics, and
Changes to preserving natural resources. LL risks suffering reputationally if choosing not to adhere to legislative changes or
Business recommendations. For example, remaining open to the public during such events could negatively represent LL
Operations values.
7.1 Reduction Strategies and Next Steps
Flooding: The likelihood of flooding will almost certainly increase, causing infrastructure and building system impacts that may
reduce operational effectiveness through a 1-3 month service interruption and cause problems to LL infrastructure amounting up to
2-5 million dollars. Due to this increased risk, it is important to have a continuity plan for specific LL testing facilities or laboratories
that are most at risk of flooding. Mitigating damage from floods includes finding safe spaces at another location to maintain critical
equipment and having insurance coverage in place to cover potential damages (Aqua- Barrier, 2022). Mitigating flood damage also
includes taking precautionary measures during the design and construction phase of new locations, especially those built near coast
lines. Flood barriers, such as metal flooding protection systems to shield facilities from high-velocity water loads, can also be installed
(Aqua-Barrier, 2022).

Climate Inflation: It is expected that climate inflation will occur in the next 5 years, resulting in infrastructure and building system
impacts, potentially reducing operational effectiveness through a 6 month-1 year service interruption. Climate inflation may also
cause problems to LL infrastructure amounting up to 2 million dollars. Due to this, it is essential for stakeholder transparency to be in
place for investors regarding measures used to address climate change to reduce concern on employee security from climate
inflation (BCE Inc, 2022, p.6). This can be achieved by providing services and technologies used to help businesses address climate
change and adapt to climate-related impacts. This can also be accomplished by establishing a designated Corporate Social
Responsibility team at LL to publicly communicate climate-related targets to employees and ensure that they are continuously
invested in by the business (BCE Inc, 2022, p.14).
Storms: Storms will likely become more frequent and severe in the next 3 years, resulting in infrastructure and building system
impacts that may reduce operational effectiveness through a 1-3 month service interruption and cause infrastructural damages in the
range of 2-5 million dollars. Due to this increased risk, developing an emergency communication and threat monitoring system for
storms will help mitigate the impacts to LL' services and staff. Storms generally won't cause extended disruptions to services, staff,
and suppliers (with the exception of flooding), but it is still important to be prepared for them, as lightning, hail, and high winds can
cause power outages. In the event of a power outage, energy independence from solar panels, backup generators, and battery
storage will allow LL to maintain samples and minimize impacts to staff and services. Looking into the near future it will be beneficial
for LL to adopt an annual operational maintenance inspection to ensure all laboratories are safely maintained and hazard-free in the
case of a severe storm.
Natural Resource Availability: Reduced availability of natural resources is almost guaranteed to occur during the coming year,
causing infrastructure and building system impacts that may reduce operational effectiveness through a 6 month-1 year service
interruption and cause infrastructural damage up to 2 million dollars. Due to this increased risk, mitigation measures must be taken
into consideration. This includes finding innovative ways to reduce the amount of resources required for specific services in order to

decrease the overall cost, such as looking into alternatives of single-use products in each facility. It is also important to take into
account the availability of water, building materials and other resources to limit extraction and reduce GHG emissions from LL
operations. (Glavan & Burke, 2022).
Climate Influenced Legislative Changes to Business Operations: It is very possible that climate influenced legislative changes
will occur in the next 3 years, causing infrastructure and building system impacts that may reduce operational effectiveness through a
3-6 month service interruption and cause infrastructural damage up to 2 million dollars. Support measures related to climate
influenced laws and mandates include ongoing transparency on how to properly follow new climate-related policies in place without
jeopardizing the regular flow of LL business operations. As these climate-related policies come into place, it creates an opportunity
for innovation and future planning to mitigate both physical and transitional risks that pose a threat to LL. For example, finding
strategies to engage all staff members in efficiently monitoring and contributing to the businesses carbon footprint, and staying on top
of regular executive assessments on priority risks that face LL (Deloitte, 2021, p.16).

Figure 1. LL’ Top 5 Risks

8.0 References
ADV Ratings. (2022). The Largest Banks in Canada. Top Banks in Canada 2022. Retrieved April 9, 2022, from
https://www.advratings.com/north-america/top-banks-in-canada
Aqua-Barrier. (2022). 5 Steps to Flood Proof your Commercial Business . Retrieved March 20, 2022, from
https://aquabarrier.com/blog/aqua-barrier/5-steps-to-flood-proof-your-commercial-business/
Arvidsson, & Dumay, J. (2022). Corporate ESG reporting quantity, quality and performance: Where to now for environmental policy
and practice? Business Strategy and the Environment, 31(3), 1091–1110. https://doi.org/10.1002/bse.2937
Assessing the financial impacts of extreme rainfall, extreme heat and freeze-thaw cycles on public buildings in Ontario. Financial
Accountability Office of Ontario (FAO). (2021). Retrieved March 10, 2022, from https://www.fao-on.org/en/Blog/Publications/cipi-
buildings
BCE Inc. (2022, March). BCE TCFD REPORT ON CLIMATE‑RELATED RISKS AND OPPORTUNITIES. BCE Responsibility .
Retrieved March 21, 2022, from https://bce.ca/responsibility/key-documents/2021-bce-tcfd-report-climate-related-risks-
opportunities.pdf
Bloomberg, M. R. (2022). Individual Membership. SASB Alliance . Retrieved April 7, 2022, from https://www.sasb.org/wp-
content/uploads/2022/01/SASBVRF-Indiv-Membership-072921.pdf
Bloomberg, M. (2021). Task Force on Climate-related Financial Disclosures. TCFD. Retrieved March 3, 2022, from:
https://assets.bbhub.io/company/sites/60/2020/10/TCFD_Booklet_FNL_Digital_March-2020.pdf

Bloomberg, M. (2017). Recommendations of the Task Force on Climate-related Financial Disclosures. Final Report - TCFD.
Retrieved March 1, 2022, from: https://assets.bbhub.io/company/sites/60/2020/10/FINAL-2017-TCFD-Report-11052018.pdf
Business Standard. (2015, May 8). Banning plastic packaging to have adverse impact on several industries: FICCI. Business
Standard. Retrieved March 16, 2022, from https://www.business-standard.com/content/b2b-plastics-polymers/banning-plastic-
packaging-to-have-adverse-impact-on-several-industries-ficci-115050800541_1.html
Cable News Network. (2016). Toronto-Dominion Bank. CNN Business. Retrieved April 9, 2022, from
https://money.cnn.com/quote/shareholders/shareholders.html?symb=TD&subView=institutional
Canada. (2013, July 22). Government of Canada. Canada.ca. Retrieved March 29, 2022, from
https://www.canada.ca/en/environment-climate-change/services/water-overview/quantity/floods/events-canada.html
Canada. (2016, June 21). Government of Canada. Lightning hotspots: map - Canada.ca. Retrieved March 29, 2022, from
https://www.canada.ca/en/environment-climate-change/services/lightning/statistics/maps-hotspots.html
Canada, N. R. (2019, September 5). Government of Canada. Natural Resources Canada. Retrieved March 23, 2022, from
https://www.nrcan.gc.ca/energy-efficiency/buildings/existing-buildings/retrofitting/20707
Canadian Red Cross. (2022). Power Outages: Information & Facts. 2022 Canadian Red Cross. Retrieved March 23, 2022, from
https://www.redcross.ca/how-we-help/emergencies-and-disasters-in-canada/types-of-emergencies/power-outages/power-
outages-information-facts

Canadian Red Cross. (2022). Wildfires: Before, During & After. 2022 Canadian Red Cross. Retrieved March 12, 2022, from
https://www.redcross.ca/how-we-help/emergencies-and-disasters-in-canada/types-of-emergencies/wildfires
Cardinal Health. (2022). FY21 Task Force on Climate-related Financial Disclosures Report. Retrieved April 10, 2022, from
https://www.cardinalhealth.com/content/dam/corp/web/documents/Report/cardinal-health-fy21-ccr-tcfd-report.pdf
CBS Interactive. (2019, August 21). Walmart sues Tesla, alleging "negligence" after solar panels went up in Flames. CBS News.
Retrieved March 29, 2022, from https://www.cbsnews.com/news/walmart-sues-tesla-solar-panels-solarcity-panels-allegedly-
caused-fires-at-seven-walmart-stores/
CDSB. (2021). Framework for reporting environmental and social information. CDSB - Home. Retrieved March 1, 2022, from:
https://www.cdsb.net/what-we-do/reporting-frameworks/environmental-information-natural-capital
CDSB. (2022). CDSB Framework. CDSB. Retrieved March 8, 2022, from:

https://www.greengrowthknowledge.org/sites/default/files/downloads/tools/cdsb_framework_2022.pdf
Climate Disclosure Standards Board. (2022). UK Greenhouse Gas reporting: getting the most out of the mandate. Retrieved April 9,
2022, from https://www.cdsb.net/mandatory-reporting/207/uk-greenhouse-gas-reporting-getting-most-out-mandate
CDP Disclosure Insight Action. (2020). Cardinal Health Inc. - Climate Change Response 2020. Cardinal Health. Retrieved January
26, 2022, from https://www.cardinalhealth.com/content/dam/corp/web/documents/Report/cardinal-health-cdp-climate-change-
response-
2020.pdf#:~:text=Cardinal%20Health%20has%20a%20Global%20Environmental%20Sustainability%20Program,is%20through
%20cross%20functional%20groups%20across%20the%20organization .

CDP Disclosure Insight Action. (2022). Metrics and Targets. TCFD Hub. Retrieved April 8, 2022, from
https://www.tcfdhub.org/metrics-and-targets/
CDP Disclosure Insight Action. (2019). Pfizer Inc. - Climate Change 2019. Pfizer 2019 Climate Change . Retrieved January 27, 2022,
from https://pfe-pfizercom-prod.s3.amazonaws.com/responsibility/protecting_environment/Pfizer_2019_Climate_Change.pdf
Canadian Climate Atlas. Prairie Climate Centre et al. Climate Atlas of Canada, version 2 (2019). Available at www.climatetlas.ca
Cleverism. (2022). Careers at Pfizer . Retrieved April 9, 2022, from

https://www.cleverism.com/company/pfizer/#:~:text=Pfizer%20sells%20its%20products%20to,clinics%2C%20government%20a
gencies%20and%20pharmacies.
Cleverism. (2022). Careers at Cardinal Health. Retrieved April 9, 2022, from https://www.cleverism.com/company/cardinal-health/
Cleverism. (2022). Careers at Roche. Retrieved April 9, 2022, from https://www.cleverism.com/company/roche/
Climate Disclosures Standards Board. (2015, November 26). CDSB Framework now used by over 300 companies.
https://www.cdsb.net/cdsb-framework/526/cdsb-framework-now-used-over-300-companies. Retrieved April 7, 2022.
Climate Disclosure Standards Board. (2022). Corporations. Climate Disclosure Standards Board. Retrieved April 7, 2022, from
https://www.cdsb.net/get-involved/corporations
Close, C. (2021, May 18). The global eco-wakening: How consumers are driving sustainability. World Economic Forum. Retrieved
March 21, 2022, from https://www.weforum.org/agenda/2021/05/eco-wakening-consumers-driving-sustainability/

Deloitte. (2021). 2021 Deloitte TCFD Report. gx-deloitte-global-impact-report-tcfd-reporting. Retrieved March 16, 2022, from
https://www2.deloitte.com/content/dam/Deloitte/global/Documents/global-report/gx-deloitte-global-impact-report-tcfd-
reporting.pdf
Enterprise Risk Management Framework - Johnson & Johnson. Enterprise Risk Management Framework. (2022). Retrieved March
23, 2022, from https://www.jnj.com/about-jnj/enterprise-risk-management-framework
Environment and Climate Change Canada. (2013, July 22). Costs of Flooding . Government of Canada . Retrieved March 13, 2022,
from https://www.canada.ca/en/environment-climate-change/services/water-overview/quantity/costs-of-flooding.html
Environment and Climate Change Canada. (2020). PAN-CANADIAN FRAMEWORK ON CLEAN GROWTH AND CLIMATE
CHANGE. En1-77-2019-eng. Retrieved March 15, 2022, from https://publications.gc.ca/collections/collection_2020/eccc/En1-
77-2019-eng.pdf
Environment and Climate Change Canada. (2017). Overview of extended producer responsibility in Canada. The Government of
Canada. Retrieved March 14, 2022, from https://www.canada.ca/en/environment-climate-change/services/managing-reducing-
waste/overview-extended-producer-responsibility.html
EPRA. (n.d.). ARPE: Electronic Products Recycling Association: Association pour le recyclage des produits électroniques. Retrieved
March 29, 2022, from https://epra.ca/
F. Hoffmann-La Roche. (2022). Investors Share Info. Roche. Retrieved April 9, 2022, from
https://www.roche.com/investors/shares/#2b22ef3d-2ff8-442e-bdb4-61ef4caedc59

Glavan, S., & Burke, E. (2022). Failure to Manage Natural Resources Puts Businesses at Critical Risk, According to New Allianz
Report. Business Wire: A berkshire Hathaway Company. Retrieved March 21, 2022, from
https://www.businesswire.com/news/home/20180612005260/en/Failure-to-Manage-Natural-Resources-Puts-Businesses-at-
Critical-Risk-According-to-New-Allianz-Report
GLISA. (n.d.). Freeze-thaw cycles. GLISA. Retrieved March 7, 2022, from https://glisa.umich.edu/resources-tools/climate-
impacts/freeze-thaw-cycles/
GlobalData. (2022). Pfizer Inc: Overview. Pfizer Inc Company Profile. Retrieved April 9, 2022, from
https://www.globaldata.com/company-profile/pfizer-
inc/#:~:text=It%20has%20major%20manufacturing%20facilities,in%20New%20York%2C%20the%20US.
Global Policy & Public Affairs, Pfizer Inc. (2021, March). Climate Change Position Statement. Retrieved April 9, 2022, from
https://cdn.pfizer.com/pfizercom/about/Climate_Change_Position_Statement_March_2021.pdf
Global Sustainability Standards Board. (2016, March 22). Transition to GRI Standards. Retrieved April 9, 2022, from
https://www.globalreporting.org/standards/media/2307/item-11-exposure-draft-of-srs-505-emissions.pdf
Global Sustainability Standards Board. (2020, November 19). GRI Sector Program – Revised list of prioritized sectors. Retrieved
April 7, 2022, from https://www.globalreporting.org/media/mqznr5mz/gri-sector-program-list-of-prioritized-
sectors.pdf#:~:text=GRI%20Sector%20Program%20%E2%80%93%20Revised%20list%20of%20prioritized,Asset%20manage
ment.%20Utilities.%20Renewable%20energy.%20Forestry.%20Metal%20processing.

Global Reporting Initiative. (2022). Member Directory. GRI Community Members. Retrieved April 7, 2022, from
https://www.globalreporting.org/reporting-support/gri-community/community-members/
Government of Canada. (n.d.). Overview of Climate Change in Canada. Retrieved March 15, 2022, from
https://www.nrcan.gc.ca/changements-climatiques/impacts-adaptation/overview-climate-change-canada/10321
Government of Canada, C. E. R. (2020, September 29). Canada energy regulator / Régie de l'énergie du Canada. CER. Retrieved
April 13, 2022, from https://www.cer-rec.gc.ca/en/data-analysis/energy-commodities/electricity/report/solar-power-
economics/index.html
Grgurich , J. (2018, October 18). 7 Things You Need to Know About TD Bank. The Motley Fool. Retrieved April 9, 2022, from
https://www.fool.com/investing/general/2013/06/19/7-things-you-need-to-know-about-td-bank.aspx
GRI. (2022). Setting the Agenda for the Future. GRI. Retrieved February 4, 2022, from https://www.globalreporting.org
Halkos, & Nomikos, S. (2021). Corporate social responsibility: Trends in global reporting initiative standards. Economic Analysis and
Policy, 69, 106–117. https://doi.org/10.1016/j.eap.2020.11.008
Incentives for going solar in Saskatchewan. Powertec Solar. (2021, February 24). Retrieved April 13, 2022, from
https://powertecsolar.ca/incentives-for-going-solar

International Energy Agency. (2021, May). Net Zero by 2050 A Roadmap for the Global Energy Sector. Retrieved March 16, 2022,
from ea.blob.core.windows.net/assets/7ebafc81-74ed-412b-9c60-5cc32c8396e4/NetZeroby2050-
ARoadmapfortheGlobalEnergySector-SummaryforPolicyMakers_CORR.pdf
Joint Statement: Working Together Towards Comprehensive Corporate Reporting. Value Reporting Foundation: Integrated Reporting
Framework. (n.d.). Retrieved April 7, 2022, from https://www.integratedreporting.org/news/joint-statement-working-together-
towards-comprehensive-corporate-reporting/
Johnston, M. (2021, September 24). Top Pfizer Shareholders. Investopedia. Retrieved April 9, 2022, from
https://www.investopedia.com/articles/company-insights/082316/top-10-shareholders-pfizer-pfe.asp
Knutsson, J., & Knuttson , P. (2020, September 3). Water and energy savings from greywater reuse: a modelling scheme using
disaggregated consumption data. springer.com. Retrieved April 13, 2022, from https://link.springer.com/content/pdf/
National Forestry Database - Canadian Council of Forest Ministers (CCFM). (n.d.). Forest fires. Forest Fires | National Forestry
Database. Retrieved March 10, 2022, from http://nfdp.ccfm.org/en/data/fires.php
Nemeth, A. (2021, November 29). Top ESG Reporting Frameworks, Explained. Moving World's Blog. Retrieved April 2022, 8AD,
from https://blog.movingworlds.org/top-esg-reporting-frameworks-explained/
Nestle. (2021). Nestlé’s 2021 climate risk and impact report. 2021-tcfd-report. Retrieved March 16, 2022, from
https://www.nestle.com/sites/default/files/2022-03/2021-tcfd-report.pdf

NIOSH. (2016). Impact of Climate on Workers. The National Institute of Occupational Safety and Health. Retrieved from:
https://www.cdc.gov/niosh/topics/climate/how.html
Pfizer Inc. (2020). ENVIRONMENTAL, SOCIAL & GOVERNANCE REPORT 2020. Pfizer ESG Report. Retrieved April 9, 2022, from
https://s28.q4cdn.com/781576035/files/doc_downloads/Pfizer-ESG-Report-2020_2021-03-10.pdf
Pfizer Inc. (2020). Task Force on Climate-Related Financial Disclosure (TCFD). Retrieved April 9, 2022, from
https://www.pfizer.com/sites/default/files/investors/financial_reports/annual_reports/2019/our-performance/tcfd-table/index.html
Population Projections for Canada, Provinces and Territories. (2015, November 27). Retrieved March 29, 2022, from
https://www150.statcan.gc.ca/n1/pub/91-520-x/2010001/aftertoc-aprestdm1-eng.htm
Provincial and Territorial Energy Profiles – Saskatchewan. CER. (n.d.). Retrieved April 13, 2022, from https://www.cer-
rec.gc.ca/en/data-analysis/energy-markets/provincial-territorial-energy-profiles/ .
Queen's Printer, Victoria, British Columbia, Canada. (2022, March 15). WASTE DISCHARGE REGULATION. B.C. Reg. 320/2004.
Retrieved March 21, 2022, from https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/320_2004#section2
Rabson, M. (2017, November 8). How rising sea levels could impact Canada's coastal cities. CTV News. Retrieved March 13,
2022, from https://www.ctvnews.ca/sci-tech/how-rising-sea-levels-could-impact-canada-s-coastal-cities-1.3669451
RIO ESG Limited . (2021, February 9). TCFD Reporting: Disclosure Examples, Software, Resources & Options. RIO Solutions .
Retrieved April 7, 2022, from https://www.rio.ai/blog/tcfd-reporting-disclosure-examples-software-resources-alternatives

Roche. (2021). Climate Change Risk Management (TCFD) . Climate Risk Management . Retrieved February 1, 2022, from
https://a.storyblok.com/f/126832/x/5a5b52a976/climate-risk-management.pdf
Roche Holding AG - Company Profile. Bloomberg. (2022). Retrieved April 9, 2022, from
https://www.bloomberg.com/profile/company/ROG:SW#:~:text=Roche%20Holding%20AG%20develops%20and,and%20the%2
0central%20nervous%20system.
Rodriguez, Cotran, H., & Stewart, L. S. (2017). Evaluating the Effectiveness of Sustainability Disclosure: Findings from a Recent
SASB Study. Journal of Applied Corporate Finance, 29(2), 100–108. https://doi.org/10.1111/jacf.12237
SASB. (2020). SASB Alliance Industry Deep Dive: Health Care Delivery Industry. SASB. Retrieved February 12, 2022
https://www.sasb.org/event/sasb-alliance-industry-deep-dive-health-care-delivery-industry/
SASB. (2022). Value Reporting Foundation SASB Reporting Standards. SASB. Retrieved February 2, 2022, from
https://www.sasb.org
Schooley, D. K., & English, D. M. (2015). SASB: A Pathway to Sustainability Reporting in the United States: Certified Public
Accountant. The CPA Journal, 85(4), 22-27. Retrieved March 18, 2022, from https://www.lib.uwo.ca/cgi-
bin/ezpauthn.cgi?url=http://search.proquest.com/scholarly-journals/sasb-pathway-sustainability-reporting-
united/docview/1677227294/se-2?accountid=15115

Schwarz, A. (2022, January 08). Top 7 Takeaways on ESG Disclosure from the 2021 Value Reporting Foundation (VRF)
Symposium. The Delphi Group. https://delphi.ca/2022/01/top-7-takeaways-on-esg-disclosure-from-the-2021-value-reporting-
foundation-symposium/
Senseware Inc. (2019). Top 10 Retrofit Methods for Sustainable Buildings. Senseware. Retrieved March 21, 2022, from
https://blog.senseware.co/top-10-retrofit-methods-for-sustainable-buildings
Sphera. (2022). What Is ESG Reporting, and Why Is It Important? Retrieved April 12, 2022, from https://sphera.com/glossary/what-
is-esg-reporting-and-why-is-it-important/
Sustainability Accounting Standards Board. (2022). Examples of SASB’s Industry-Specific Approach. Value Reporting Foundation:
SASB Standards. Retrieved April 7, 2022, from https://www.sasb.org/industry-specific/
Statista. (2021). Pfizer's number of employees from 2006 to 2021. Retrieved April 9, 2022, from
https://www.statista.com/statistics/281387/number-of-employees-at-pfizer-since-2006/
Strozzilaan, B. (n.d.). The GRI Standards A GUIDE FOR POLICY MAKERS. Retrieved April 7, 2022, from
https://www.globalreporting.org/media/nmmnwfsm/gri-policymakers-guide.pdf
Task Force on climate-related Financial Disclosure . Supporters: TCFD. (2022). Retrieved April 7, 2022, from https://www.fsb-
tcfd.org/supporters/
Taylor, G., & Vila, B. (2020, September 22). Solved! What Causes Power Outages. bob vila: Tried, True, Trustworthy Home Advice.
Retrieved March 12, 2022, from https://www.bobvila.com/articles/what-causes-power-

outages/#:~:text=Lightning%20is%20responsible%20for%20many%20power%20outages.%20If,transformers%2C%20relays%
29%2C%20which%20interrupts%20the%20flow%20of%20electricity.
TD Asset Management . (2022). Clients. TD Canada . Retrieved April 9, 2022, from https://www.td.com/ca/en/asset-
management/institutional/clients/
TD Canada. (2018). 2018 Managing Climate-Related Risks and Opportunities: TD's TCFD Report. TCFD Report Final . Retrieved
January 20, 2022, from https://www.td.com/document/PDF/corporateresponsibility/TCFD-report-final.pdf
TD Canada . (2020). 2020 Managing Climate-Related Risks and Opportunities. 2020 TCFD Report . Retrieved January 25, 2022,
from https://www.td.com/document/PDF/ESG/2020-TCFD-Report.pdf
TD Canada. (2021). Environmental and Social Lending Risk Process. Retrieved April 9, 2022, from
https://www.td.com/document/PDF/ESG/2021-TD-Environmental-and-Social-Credit-Risk-Process.pdf
The Governance Group AS. (2022, February 21). Climate risk review Mapping climate risk management in accordance with the
recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The Governance Group. Retrieved
March 13, 2022, from https://int.akersolutions.com/globalassets/sustainability/tcfd-climate-risk-review-2019.pdf
Toronto Dominion. (2022). Organizational Profile . Retrieved April 9, 2022, from https://www.td.com/corporate-responsibility/report-
centre/gri-2013/organizational-profile.jsp
Transport Canada. (2022, March 24). Incentives for purchasing zero-emission vehicles. Transport Canada. Retrieved April 13, 2022,
from https://tc.canada.ca/en/road-transportation/innovative-technologies/

Turner, S. (2021, January 12). Disclosure of climate-related information by listed companies: examining the new rules published by
the FCA. Evershields Sutherland . Retrieved April 8, 2022, from https://www.eversheds-
sutherland.com/global/en/what/articles/index.page?ArticleID=en/Corporate/Disclosure-of-climate-related-information-by-listed-
companies
UCAR. (2022). Air Quality and Climate Change. UCAR: Center for Science Education . Retrieved March 11, 2022, from
https://scied.ucar.edu/learning-zone/air-quality/air-quality-and-climate-change
Value.Today. (2021). Roche Holding AG. Retrieved April 9, 2022, from https://www.value.today/company/roche-holding-ag
WallStreetZen. (2022). CARDINAL HEALTH INC Stock Ownership - Who owns CARDINAL HEALTH? Retrieved April 10, 2022, from
https://www.wallstreetzen.com/stocks/us/nyse/cah/ownership
Works Design. (2021). Sustainability Reporting Trends. Works Design. Retrieved March 17, 2022, from
https://www.worksdesign.com/wp-content/uploads/2021/10/Works_Design_Trends_Summary_2022.pdf
Yahoo. (2022). Canada releases plan for a 40 per cent cut in carbon emissions by 2030. Yahoo! News. Retrieved March 29, 2022,
from https://ca.news.yahoo.com/canada-releases-plan-slash-emissions-
171622336.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuYmluZy5jb20v&guce_referrer_sig=AQAAAB_lW
zaEf07qSUdHVz36nqwkIL2Xd5PkDKMIaSd9Gsw_pucBAimM5zBYxRTn00Lnv2CHP7LSpXIHDPX_LxeI1X0zOeNt-
OoQygPA4ytzK5EgpiLmycqxTj-UM7rRgWKimvQpJkldrgIj06wRLW6Y2acIBTwGGOgXO4NjTXG9DpZG
Zayed, J. (2013). Impacts of Climate Change on Occupational Health and Safety. IRSST. Retrieved March 8, 2022, from:
https://www.irsst.qc.ca/media/documents/pubirsst/r-775.pdf

9.0 Appendix
Figure 2. LL Policy and Legal Risks

Figure 3. LL Market Risks

Figure 4. LL Technological Risks

Figure 5. LL Acute Risks

Figure 6. LL Chronic Risks

LL - Final Sample

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

LL - Final Sample

Uploaded by

Copyright:

Available Formats

Climate-Related Risk Assessment

Canadian Climate Risk Analysts 1

Canadian Climate Risk Analysts 2

Canadian Climate Risk Analysts 3

4.1 Infrastructure and Building System Risks.................................................................................................................................. 50

Canadian Climate Risk Analysts 4

Canadian Climate Risk Analysts 5

ESG - Environment, Social, Governance

GHG - Greenhouse Gas Emissions

GRI - Global Reporting Initiative

IIRC - International Integrated Reporting Council

MOI - Magnitude of Impact

SASB - Sustainability Accounting Standards Board

TCFD - Task Force for Climate-Related Financial Disclosure

Y-O-Y - Year over year

Canadian Climate Risk Analysts 6

Why this Report was Made

Navigating the Report and Spreadsheet

Canadian Climate Risk Analysts 7

1.0 Risk Frameworks

1.1 Task Force on Climate-Related Financial Disclosures

Canadian Climate Risk Analysts 8

1) Governance: The organization’s governance around climate-related risks and opportunities

Canadian Climate Risk Analysts 9

1. Transition to a Lower-Carbon Economy – Risks:

2. Physical Impacts of Climate Change – Risks:

Canadian Climate Risk Analysts 10

Canadian Climate Risk Analysts 11

1.2 Climate Disclosure Standards Board

1. Natural, human, and social capital dependencies.

Canadian Climate Risk Analysts 12

3. Environmental and social risks and opportunities.

Canadian Climate Risk Analysts 13

Canadian Climate Risk Analysts 14

Canadian Climate Risk Analysts 15

1.3 Sustainability Accounting Standards Board

Canadian Climate Risk Analysts 16

1. Business Description (Line Item 1)

Canadian Climate Risk Analysts 17

Canadian Climate Risk Analysts 18

1.4 Global Reporting Initiative

1. Basic materials and needs (Group 1)

Canadian Climate Risk Analysts 19

4. Other services and light manufacturing (Group 4)

1. Universal standards (GR1, GR2, GR3)

Canadian Climate Risk Analysts 20

Canadian Climate Risk Analysts 21

Table 1. Sustainability Framework Summary

Canadian Climate Risk Analysts 22

Canadian Climate Risk Analysts 23

Canadian Climate Risk Analysts 24

Canadian Climate Risk Analysts 25

1.5 Key Takeaways

Canadian Climate Risk Analysts 26

2.0 Organization Assessments

Canadian Climate Risk Analysts 27

Canadian Climate Risk Analysts 28

Table 2. TD - Climate-Related Risk, Impacts, and Opportunities

Risk Potential Impact

Operational Extreme weather events resulting in physical damage to operations

Opportunity Potential Impact

Canadian Climate Risk Analysts 29

Table 3. TD - Top 3 Climate-Related Risks and Opportunities