Memorandum for the Petitioners 1135 methodology by which companies can voluntarily disclose climate-related financial risks to the market, in the interests of improving financial stability through the disclosure of information regarding material risks.634 8.187. The physical and economic impacts of climate change and the transition to a zero-carbon economy present foreseeable, material, and financial risks for nearly all industries and sectors within mainstream investment horizons.635 8.188. Respondent Carbon Majors should at a minimum rely on the TCFD’s specific guidance on how to quantify and disclose climate risks, including the: r 1. Risks from the physical impacts of climate change; 2. Transition risks, which arise from the transition to a low carbon economy and include the risk of stranded assets; and 3. Associated litigation risks, which could arise from the above risks themselves, or from liability claims.636 8.189. The TCFD recommendations also suggest that companies disclosure cover the following areas: governance, strategy, risk management and metrics, and targets.637 r 8.190. For the respondent Carbon Majors, implementing the TCFD recommendations will assist them in meeting some of their existing legal obligations in respect of climate-related disclosure. Disclosing in accordance with the TCFD’s guidance will also assist respondents to prepare for the coming transition to a low carbon economy, by preparing executives for a range of possibly disruptive futures, as well as prepare the companies for the physical disruption that will occur from increasing extreme weather events and rising sea levels.638 However, this type of disclosure does not replace the need for due diligence requirements of “knowing and showing,” as outlined by the UNGPs. Ibid. So much that in 2015, Bank of England Governor and head of the G20 Financial Stability Board Mark Carney declared that climate-related financial risk threatens the very stability of the global financial system. See Mark Carney (29 September 2015), Breaking the tragedy of the horizon—climate change andfinancial stability, Speech given at Lloyd’s of London, available at https:// www.bankofengland.co.uk/speech/2015/breaking-the-tragedy-of-the-horizon-climate-change-andfinancial-stability ( last accessed on 12 September 2019). 636 Exhibit “GGGGGGG ” to “GGGGGGG -20,” Printed PowerPoint Presentation of Brenda Ekwurzel, entitled "Presentation for the Republic of the Philippines Commission on Human Rights National Inquiry on Climate Changeslide 18. 637 Id , slide 10. 638 Marjanac, S ., supra note 136, p. 40 . 634 635