Integrating climate risks in financial decision-making
The Task Force on Climate-related Financial Disclosures was set up to improve the quality of climate-related financial information available to financial markets. Markets need to assess the risks and opportunities presented by global warming, regulatory changes and technological innovations. Clear and easily comparable data is essential to this assessment.
The TCFD helps investors, banks and corporates improve the information they disclose on risks and opportunities related to climate change. The TCFD seeks to streamline disclosure by creating a framework that can be applied through organisations’ current reporting processes.
Financial organisations must integrate data concerning risk and opportunities related to climate change into their corporate governance processes - from the board level down. In turn, these strategic planning and risk management policies determine where to place investments in opportunities, solutions and ways of doing business that reduce emissions and mitigate warming.
More details on TCFD reporting can be found below.
Governance
Disclosing governance around climate-related risks and opportunities. These are top-down administrative policies for climate-related risks and opportunities, and how these are addressed at board and management levels.
Strategy
Disclosing impacts of climate-related risks and opportunities on organisation’s business, strategy and financial planning. Here we look at the resilience of organisational strategy to manage climate-related scenarios.
Strategic planning risk management
disclosing how a client would identify, assess, manage climate-related risks, and integrate these into broader risk management strategy. This includes physical and transition risks, resource efficiency, energy, and markets.
Metrics and targets
Disclose metrics and targets to evaluate and handle relevant climate-related risks and opportunities. We can assist with mapping scope 1, 2 and 3 GHG emissions and set targets to manage risks and opportunities.
Our TCFD reporting service includes:
- Gap analysis – review your existing climate strategy and disclosures to see which recommendations they meet and prioritise where to focus for compliance.
- Scenario modelling – map your carbon footprint, look for hotspots and identify realistic interventions. For example, raw material substitution, technological improvements, consumer behavioural change and end of life treatment.
- Supply chain resilience – implement a more comprehensive approach to supply chain optimisation by combining strategy resilience and sustainability.
- Roadmap – define the duration and timeline for selected strategies.
- Risk analysis – investigate physical and transition risks relevant to your business.
- Recommendations – As well as providing as many recommended disclosures as possible, we help identify areas for improvement.