FAQ: What are TCFD reporting requirements?

TCFD or Task Force on Climate-related Financial Disclosures reporting has a set of guidelines for companies to follow when disclosing information about their governance, strategy, risk management, and metrics and targets related to climate change, ensuring that they meet the TCFD requirements. The TCFD requirements are an industry-led initiative and are voluntary for companies outside of the UK, however they are becoming widely recognised and supported by investors, regulators and other stakeholders as a best practice for providing high-quality, consistent and transparent climate-related financial disclosures. The TCFD reporting requirements are set out to cover four key themes, including governance, strategy, risk management and metrics and targets.

1. Governance: Within the TCFD report the theme of governance focuses on information about the board of directors and their overview of climate-related risks and opportunities for a improvements, including the role of senior management in overseeing the organisation’s climate strategy.

2. Strategy: Within a TCFD report it includes information on how the company is positioning itself in the transition to a low-carbon economy, including its goals and targets related to climate change.

3. Risk Management: A TCFD report includes information on how the company is managing the risks and opportunities associated with climate change, together with its processes for identifying, assessing, and managing climate risks.

4. Metrics and Targets: TCFD reports include information on the company’s emissions, energy use, and other relevant metrics, as well as its targets for reducing emissions and improving energy efficiency. TCFD reporting requirements are designed to be easy to follow and flexible to ensure that companies can tailor their disclosures to their specific circumstances. The TCFD recommendations provide guidance on what types of information organisations should include, and how to present it, in order to provide stakeholders with a comprehensive and meaningful understanding of a company’s approach to climate change.

Ecometrica are the only software company that combines location specific data to analyse climate related risks, and powerful GHG accounting (including scope 1, scope 2 and scope 3) to comply with mandatory TCFD disclosure.