The Financial Stability Board Task Force on Climate-related Financial Disclosures (TCFD) developed voluntary, consistent, climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers, and other stakeholders.

The task force structured its recommendations around four themes that represent key aspects of how organizations operate: governance, strategy, risk management, and metrics and targets.

This section addresses the disclosures, with links to the relevant sections of the Annual Integrated Report, and provide a self-assessment of Solvay’s level of alignment with the TCFD recommendations.


  • The Charter of Corporate Governance describes how the Board of Directors manages sustainability-related aspects and is available on the Solvay Website. The Board thus devotes at least one meeting per year to an update on trends in global sustainable development issues, including climate change risks and opportunities;
  • A Climate Risks Officer has been appointed at Executive Committee level. He is in charge of ensuring that climate-related aspects are adequately considered in the Group’s strategy and operations.


  • Long-term horizon assumptions are presented in the description of megatrends. See in particular the description of the “Resource constraints and demand for sustainability” megatrend. Medium-term assumptions (in the coming five years) are explained in the description of Solvay’s main markets. Short-term assumptions (one year) are presented in the Group’s outlook;
  • Climate transition risks are described in the "Risk Management" chapter. The Group has included water-related risks in climate transition risks rather than in physical risks, because elements of transition risks affect water-related risks (i.e. in legislative developments). Other climate-related physical risks are not in the Group’s list of highest risks, as “physical impacts of climate change” are currently ranked as having moderate materiality. The focus in 2018 was the definition of a new greenhouse gas emissions reduction plan; climate risks and opportunities will be reviewed in 2019;
  • The Sustainable Portfolio Management methodology is used to assess sustainability-related risks and opportunities for each product in each application, with a focus on the long term. Environmental impact monetization of CO2 emissions uses a CO2 price of € 75 per ton, in line with 2°C scenario assumptions. This allows Solvay to have a sound understanding of the climate resilience of the majority of its products and solutions portfolio, but the Group need to extrapolate this understanding to a strategic business level. Over the coming years Solvay plans to conclude its work in this regard, to identify mitigation actions by reference to innovation priorities, capital investments, and portfolio actions, and to disclose the progress qualitatively;
  • The presentation of the Group’s main risks does not include a differentiation between short, medium, and long-term horizons. Quantification of impacts is not disclosed.

Risk management

  • The risk management process, the main risks, and the process used to rank them are described in the "Risk Management" chapter;
  • Analysis of sustainability-related risks and opportunities is done through the Sustainable Portfolio Management methodology, for each product in each application or market, including the climate change transition risk;
  • “Greenhouse gas emissions” (GHG) has been identified as a priority aspect in the Group’s materiality analysis. “Climate transition risks” has been identified as part of the Group’s main risks. Links between main risks and high materiality issues are part of the materiality analysis process. "Climate-related physical risks" has been ranked up to now as “moderate materiality aspects”;
  • The Sustainable Portfolio Management tool is a mandatory requirement in key Group processes and in particular in the assessment of capital expenditures projects, Research and Innovation projects, and acquisition and divestiture projects.

Metrics and targets

  • The strategic objectives used to drive sustainable value creation are described in the Solvay scorecard;
  • Greenhouse gas emissions, energy consumption, and Sustainable Portfolio Management metrics and targets are reported in the “Extra-financial statements” chapter. Solvay updated its greenhouse gas emissions approach in September 2018 and has pledged to reduce greenhouse gas emissions by 1 million tons by 2025 by improving its energy efficiency and energy mix and by investing in clean technologies. In setting a concrete objective, it is among the first chemical groups to decouple its emissions from its growth;
  • Greenhouse gas Scope 1 and Scope 2 emissions are fully reported. The scope of emissions reporting is consistent with financial reporting;
  • Scope 3 emissions related to upstream activities are disclosed. Scope 3 emissions related to processing, use and end-of-life treatment of sold products are qualitatively assessed and potential meaningful impacts have been identified but not fully quantified, and therefore not disclosed. This does not prevent the Group from proactively engaging with customers to ensure that activities minimize emissions responsibly.