TCFD Groundwork


TCFD reporting is the major disclosure requirement linked to climate risk and the regulators across the world are linking their disclosures with TCFD. Against this backdrop, TCFD requirement is to be adopted by both financial and non-financial Corporates across the world. The Corporates need to do the groundwork for preparing themselves for TCFD.

TCFD Groundwork

TCFD reporting is the major disclosure requirement linked to climate risk and regulators across the world are linking their disclosures with TCFD. Against this backdrop, the TCFD requirement is to be adopted by both financial and non-financial Corporates across the world. The Corporates need to do the groundwork for preparing themselves for TCFD. The following activities can help the Corporates in their preparedness for TCFD:

-Secure the support of their board of directors and executive leadership team

-Integrate climate change into key governance processes, enhancing board-level oversight through audit and risk committees

-Bring together sustainability, governance, finance, and compliance colleagues to agree on roles

-Look specifically at the financial impact of climate risk and how it relates to revenues, expenditures, assets, liabilities, and capital

-Assess their business against at least two scenarios

-Adapt existing enterprise-level and other risk management processes to take account of climate risk

-Solicit feedback from engaged investors to understand what information they need regarding climate-related financial risks and opportunities

-Look at existing tools they may already use to help you collect and report climate-related financial information

-Plan to use the same quality assurance and compliance approaches for climate-related financial information as for finance, management, and governance disclosures

-Prepare the information they report as if it were going to be assured

-Look at the existing structure of their annual report and think about how they can incorporate the recommendations

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