TCFD framework

To effectively respond to the challenges that the net zero transition presents, businesses must have a future-focused vision of how to remain profitable and resilient. Having a clear and measurable target gives us direction and focus; however, to devise an effective strategy, we also need to know what our starting point is. This tends to be one of the biggest hurdles across the private sector: a lack of internationally agreed-upon reporting standards for social and environmental performance. Without accurate, relevant and detailed benchmarking data, it is difficult to appropriately assess risk and progress towards the net zero target.

One important response to this challenge is the Task Force for Climate-Related Financial Disclosures (TCFD). Established by the Financial Stability Board in 2015, the aim of the TCFD is to encourage companies to gather and disclose information about climate-related risks in order to help financial markets and investors make well-informed decisions. Since the first TCFD recommendations were published in 2017, climate-related risk disclosure has become an increasingly prevalent feature for both businesses and investors.

https://www.fsb-tcfd.org/

Disclosure can be an important tool in the transition towards net zero. Link to EY below also outlines the key features of the TCFD framework and the opportunities that it presents for organisations. Some of the factors that led an organisation to align with TCFD requirements reveals how disclosure and strategic forward planning have benefitted organisational strategy.

more info here: https://www.ey.com/en_gl/assurance/climate-change-disclosures-revealing-risks-opportunities