Meet Neil, an EHS manager who has learned his organisation must report their Task Force on Climate-related Financial Disclosures (TCFD) disclosures a week ago. It’s been quite a challenge to understand this foreign concept, but he’s slowly learning more about the framework. He has spent hours on the internet, researching what the TCFD is, its purpose, and more.
Meet Neil, an EHS manager who has learned his organisation must report their Task Force on Climate-related Financial Disclosures (TCFD) disclosures a week ago. It’s been quite a challenge to understand this foreign concept, but he’s slowly learning more about the framework. He has spent hours on the internet, researching what the TCFD is, its purpose, and more.
Now, it’s time to take a closer look at the TCFD recommendations to learn exactly what they entail and how this will impact the business. With this information in his trusty toolbox, Neil will be more prepared to build a successful TCFD report.
Keep reading to gain greater insight into the TCFD recommendations, including:
What are the 11 TCFD recommendations
What this means for your organisation
3 tips to help you get started
CHAPTER 1
What are the 11 TCFD recommendations
Governance, Strategy, Risk Management, Metrics and Targets were chosen by the Task Force because they portray the four main areas needed for an organisation to function. The 11 recommendations found within these four elements were also created to help provide guidance on how organisations should be approaching climate-related risks and opportunities when it comes to their business. Let’s take an even closer at exactly what these 11 recommendations entail:
Governance:
Board oversight: Disclose the board’s oversight and role when it comes to climate-related risks and opportunities
Management’s role: Showcase what management’s role is when it comes to identifying and managing climate-related risks and opportunities
2. Strategy:
Resilience of strategy: Prove the resilience of the organisation’s strategy when it comes to tackling these climate-related risks and opportunities.
Climate-related risks and opportunities: Explain what the climate-related risks and opportunities uncovered by the organisation are over the short, medium and long term.
Impact of climate-related risks and opportunities on organisation: Highlight what the impact of these climate-related risks are on the business including its strategy and financial planning.
3. Risk Management:
Risk ID and assessment processes: Describe the process the organisation uses for identifying and evaluating climate-related risks.
Risk management processes: Explain how the organisation will manage these identified risks.
Integration into overall risk management: Delineate the integration between processes used to identify, evaluate and manage climate-related risks and the business’s processes for overall risk management.
4. Metrics and Targets:
Climate-related metrics: Share the metrics the organisation has used to evaluate climate-related risks and opportunities.
Scope 1, 2, 3 GHG emissions: Reveal the business’s scope 1, 2, and 3 GHG emissions.
Climate-related targets: Describe the targets the organisation has used to manage the climate-related risks and opportunities and show how they have performed against the aforementioned targets.
