Taskforce on Climate-related Financial Disclosures

TCFD Reporting

Climate change is recognised as a significant threat to the stability of the global economy. The Taskforce on Climate-related Financial Disclosures (TCFD) was established to take this into account. Understand the latest climate-related disclosure recommendations and how to align your business with new expectations.

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Climate change is recognised as a significant threat to the stability of the global economy. The disclosure landscape for businesses is changing to take this into account.

The Taskforce on Climate-related Financial Disclosures (TCFD) was established at the request of G20 leaders. In 2017 it released a set of recommendations to encourage consistent, reliable and clear climate-related financial disclosures enabling investors to properly take account of climate-related risks.

The recommendations are now widely endorsed by governments, investors and financial leaders. The TCFD is now the latest best practice in climate reporting.

How we can help with the TCFD.

We can help your business stay ahead of the curve by developing a clear strategy in line with these important recommendations.

 

Gap Analysis

Undertaking a review of your current climate strategy and disclosures will enable you to understand where you meet the recommendations already and where you need to focus to comply.

 
EcoAct Climate Risk Platform (ECLR)

Governance

Climate change doesn’t stop outside your sustainability team. Demonstrating effective governance on climate-related matters from the top of your organisation and throughout is key.

 

Scenario Analysis

We can help you tackle a challenging but important aspect of the recommendations – understanding the impacts to your business dependent on varying climate scenarios.

 

Improving Your Disclosures

The recommendations stipulate that climate-related financial disclosures must be evidenced in a company’s main annual financial filings. We can guide you providing investors and stakeholders with the right information.

Circle sky
 

Adopting the recommendations of the TCFD is a challenge for any business. However, JetBlue have gotten their TCFD reporting off the ground early, to learn by doing and continually strive for improvements, as the TCFD itself advises.

William Theisen, CEO, EcoAct USA

Read the full case study
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A guide to TCFD alignment

Traditionally, climate disclosure focused on the question “What is the impact of your organisation on climate change?”. The TCFD flips this question on its head, to ask “What will be the impact of climate change on your organisation?”.

Now, more than ever before, we must consider this question and understand the implications of climate change to make sure we are taking adequate action: investors are demanding it, governments are making it mandatory and climate science is telling us it is increasingly urgent.

In our TCFD eBook we demonstrate how to improve business disclosures, strengthen climate and sustainability strategy, and future-proof business through one exercise: TCFD alignment.

Download the guide to learn:

  • What are the TCFD recommendations?
  • Who are they intended for?
  • What are the risks and opportunities of climate change?
  • What is climate scenario analysis (CSA)?
  • How can the TCFD accelerate your organisation’s transition to net-zero and provide it with an important edge in the fight for capital?
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Key Questions about the TCFD

What is the Taskforce on Climate-related Financial Disclosures (TCFD)?

The Taskforce on Climate-related Financial Disclosures (TCFD) is a framework that provides recommendations for disclosing climate-related financial information and was established at the request of G20 leaders.

In 2017 it released a set of recommendations to encourage consistent, reliable and clear climate-related financial disclosures enabling investors to properly take account of climate-related risks.

The recommendations are now widely endorsed by governments, investors and financial leaders. The TCFD is now the latest best practice in climate reporting.

What are the requirements?

Businesses must align with the TCFD to manage climate risks, enhance investor trust, ensure regulatory compliance, access capital, and gain a competitive edge in an evolving sustainable economy.

What information do businesses need to disclose under TCFD guidelines?

TCFD guidelines require businesses to disclose governance, climate strategy, risk management, metrics/targets, including emissions data, risk/opportunity assessments, and financial impacts. It encourages flexibility to suit individual circumstances while adapting to regulatory and industry standards.

It’s important to note that TCFD is a flexible framework, and the specific information and metrics disclosed may vary from one organization to another. Regulatory requirements and industry standards may also influence the specific data and disclosures that businesses are expected to provide regarding climate-related matters.

If you are unsure about the specifics for how your business should align to the TCFD framework, speak to one of our TCTD experts and we can guide you through the process.

What is the TNFD and why should your business adopt its recommendations?

Following the success of the Task Force on Climate-related Financial Disclosures (TCFD), in June 2021 the Task Force on Nature-related Financial Disclosures (TNFD) was formally announced to respond to the acceleration of global nature loss and decline.

The TNFD aims to put nature at the heart of business decisions to reduce risks to nature and finance. EcoAct’s TNFD experts, Kimberley Lasi and Jess Chalkley, explain what TNFD is and why your business should adopt the TNFD recommendations.

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