KeyCorp Releases TCFD Report

Nov 22, 2021 9:00 AM ET
KeyCorp Task Force on Climate-related financial disclosures report; cover shows a woman with a child in a garden.

KeyBank today announced it has issued a Task Force on Climate-related Financial Disclosure (TCFD) report. The “Climate Change Risks & Opportunities” report outlines Key’s commitment to both further reducing its environmental footprint and continuing to enable stakeholders in efforts to do the same.

Covering the period from January 1, 2020 to December 31, 2020, the report is informed by TCFD’s recommendations and outlines KeyCorp’s approach to managing climate-related risks and opportunities in the areas of governance, strategy, risk management, and metrics and targets.

“Resilient communities are thriving communities” said Chris Gorman, KeyCorp’s Chairman and CEO. “Doing our part to address climate change is one way we continue to deliver on our purpose: to help clients and communities thrive. We must build a sustainable business model that manages risks, capitalizes on opportunities, and drives the transition to a low-carbon economy.”

Highlights from KeyCorp’s “Climate Change Risks & Opportunities” include:

Top provider of renewable energy financing in North America: Since 2010, KeyBank has made more than $15 billion in renewable energy investments and was a top provider of renewable energy financing in North America in 2019 and 2020. This includes more than 1,900 projects financed and 40.5 GW installed. In 2020, KeyBank was ranked #2 when measured by deals, and #3 on a volume basis by Dealogic in the Americas for Renewable Energy Project Finance.

Development of climate risk management framework: KeyCorp has tested a variety of tools to help inform a broader approach to climate risk management. Building from this work, in the second half of 2021, Key began to consolidate existing work and fill gaps to establish a climate risk management framework. To inform the framework and other climate risk mitigation practices, Key is launching a robust analysis of climate risk impact through a detailed risk identification and assessment. The framework will include elements related to risk identification, risk measurement, risk management, risk reporting, financed emissions, business opportunities, governance, and resource requirements and will enable more effective oversight and decision-useful disclosure.

Operations efficiency metrics: KeyCorp continues to see the positive environmental impacts of multiyear efforts to optimize operations and has already reduced GHG emissions by 24% and energy consumption by 22% from a 2016 baseline. Key remains well on track to meet its 2030 goals on reducing operating emissions.

Next Steps: As outlined in the TCFD report, KeyCorp has made progress towards integrating climate change risk into core risk processes and building appropriate capabilities to meet the expectations of stakeholders. Key’s path forward includes, among other steps:

  • Continue building internal capacity and knowledge of climate risks and opportunities
  • Define sustainable finance at Key and evaluate opportunities to set a sustainable finance goal
  • Evaluate and implement methodologies to measure financed emissions
  • Evaluate net zero commitments
  • Engage and support clients on their transition plans