TCFD’s recommendations on climate-related financial disclosures

What is the TCFD?

Having been asked by the G20 to review how the financial sector can take account of climate-related issues, the Financial Stability Board (FSB) established the TCFD; an industry-led task force made up of 32 members, and chaired by Michael R. Bloomberg, to develop consistent, voluntary climate-related financial risk disclosures for stakeholders such as lender, insurers and investors.

Why was the TCFD established?

In acknowledgment of, and in response to the risk that climate change poses to the global economy, the TCFD’s intention is to help companies understand what financial markets need from disclosure in order to measure and respond to climate change risks, and to encourage companies to align their disclosures with these needs.

What are the TCFD’s recommendations?

The Task Force has developed four widely adoptable recommendations on climate-related financial disclosures, which are intended to be suitably ambitious whilst also being practical for near-term adoption. The four recommendations are split across four ‘thematic areas’ that represent core elements of how organisations operate; governance, strategy, risk management, and metrics and targets. Within each of these overarching recommendations, the TCFD has also included specific recommended disclosures.

So what does all of this mean for your organisation and how would it impact your disclosure to your shareholders and other stakeholders? The TCFD’s recommendations offer organisations with a route to minimise the risk of inadequate reporting.

Our briefing paper explains what these recommendations are, how do they complement your existing reporting, and what you should do in order to align with these recommendations. Get your copy to find out or simply get in touch with us if you have any questions.