FAQ: What is TCFD reporting?
TCFD or Task Force on Climate-related Financial Disclosure, is an industry-led initiative established by the Financial Stability Board (FSB). It was designed to develop recommendations for voluntary, consistent climate-related financial disclosure. TCFD aims to provide clear and useful information to investors, lenders and insurance underwriters about the potential impacts of climate change on an organisation and its financial performance. TCFD reporting follows a specific framework, providing organisations with guidelines to disclose their climate-related risks and opportunities in a standardised, consistent and comparable format. The TCFD framework includes 11 recommendations covering four key areas, governance, strategy, risk management and metrics and targets. The 11 TCFD recommendations are designed to help companies assess and disclose the physical, transition and liability risks posed by climate change, as well as their efforts to mitigate these risks and take advantage of any opportunities to implement improvements. Although the TCFD framework is voluntary, it is becoming increasingly important for organisations to adopt it, with more investors and stakeholders placing more emphasis on the role of companies to address the impacts of climate change. Organisations that undertake TCFD reporting are able to provide valuable information to investors and stakeholders, demonstrating their commitment to moving towards a more sustainable and low-carbon economy in the future. Ecometrica has the only software platform 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.