Task Force on Climate-Related Financial Disclosures

We are committed to assessing and managing our climate-related risks and opportunities in alignment with the Task Force on Climate-Related Financial Disclosures (TCFD). These steps are important signals of our ongoing commitment to transparency and disclosure.

Our intent to align our climate-related disclosures with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) was announced in 2020. In doing so, we intend to include in our disclosure an assessment of climate-related risks and opportunities under various climate scenarios and time horizons. After our initial assessment using the TCFD recommendations was conducted, we have continued to assess and manage our climate-related risks and opportunities as a company periodically as part of our enterprise risk management process. 

Our Approach to Evaluating and Implementing TCFD Recommendations

Cabot strives to build more resilient climate and business strategies that meet the needs of our business and stakeholders. An internal cross-functional stakeholder group was convened to perform an in-depth analysis of climate-related risks and opportunities in accordance with the TCFD recommendations outlined in The Final Report of Recommendations of the TCFD (June 2017) published by the TCFD.  Within the working group, the team completed the following: 

• Conducting a peer benchmarking and gap analysis of our existing climate-related disclosures against the TCFD recommendations;
• Refreshing and categorizing Cabot’s list of climate risks and opportunities;
• Reviewing publicly available and widely accepted climate scenarios to identify the most appropriate options for the climate scenario analysis; 
• Qualitatively assessing potential impacts of the climate risks and opportunities identified; and
• Developing and ranking a comprehensive list of potential climate risks and opportunities relevant to our businesses. 

Following the TCFD Guidance on Risk Management Integration and Disclosure, Cabot’s analysis focuses on the core elements of Governance, Strategy, Risk Management and Metrics & Targets.  

In 2025, we updated our assessment of transitional and physical risks and opportunities using the following time horizons: short-term: 2025-2030; medium-term: 2031–2035; and long-term: 2036-2050. The updated assessment was completed by reviewing Cabot’s 2025 Enterprise Risk Management (ERM) risk register.

The key risks and opportunities were prioritized and categorized according to the TCFD guidance, as illustrated in our TCFD Climate Scenario Risks and Opportunities Matrix and TCFD index.