Task Force on Climate-related Financial Disclosures
Risk Evaluation
Enhance your ability to comprehensively assess climate-related risks affecting not only your company but also its suppliers and competitors.
Resource Distribution
Enhance your capacity to make well-informed choices regarding the allocation of your capital by gaining deeper insights into when and where to invest.
Strategic Foresight
Enhance your capability to thoroughly assess risks and exposures across short-term, medium-term, and long-term timeframes.
Pillars
The TCFD establishes four pillars to guide organizations in assessing and disclosing climate-related risks and opportunities: Governance, Strategy, Risk Management, and Metrics and Targets. Governance emphasizes the role of boards and management in overseeing climate issues. Strategy integrates climate considerations into overall business strategy. Risk Management involves identifying, assessing, and managing climate risks. Metrics and Targets entail measuring and disclosing climate-related data and progress. These pillars collectively provide a comprehensive framework for effective climate-related financial disclosure.
Metrics & targets
focuses on the metrics and targets used by the company to assess and manage its climate-related risks and opportunities. It includes quantitative and qualitative disclosures related to greenhouse gas emissions, energy usage, water usage, and other relevant factors
Risk Management
addresses the processes used by the company to identify, assess, and manage climate-related risks. It includes information on the company’s risk management strategies, policies, and practices related to climate change, as well as how these are integrated into broader risk management processes.
Strategy
Deals with the actual and potential impacts of climate-related risks and opportunities on the company’s businesses, strategy, and financial planning.Also involving disclosing information about the company’s climate-related risks and opportunities, including how these are identified, assessed.
Governance
focuses on the governance structures and processes that a company has in place to manage climate-related risks and opportunities. It includes the role of the board of directors and senior management in overseeing climate-related issues, as well as the integration of climate considerations into overall risk management.