In a world where climate change plays a growing role, you can show your stakeholders that they can trust the future and (financial) stability of your business.
The TCFD (Task force on Climate related Financial Disclosure) is a disclosure instrument on greenhouse gas reduction that makes sense to start using (Earlier I posted on the relevance of the SBTi and GHGP for disclosure.)
The TCFD has developed a framework to help public companies and other organizations disclose climate-related risks and opportunities.
The disclosure recommendations are structured around four thematic areas that represent core elements of how companies operate: governance, strategy, risk management, and metrics and targets.
Why can it be relevant for companies to disclose?
· Improve access to capital by increasing investors and lenders confidence that the company’s climate-related risks are appropriately assessed and managed
· More effectively meet existing disclosure requirements to report material information in financial filings
· Increase awareness and understanding of climate-related risks and opportunities within the company, resulting in better risk management and more informed strategic planning
· Address investors demand for climate-related information in a framework that investors increasingly ask for
In order to give financial disclosure in line with the recommendations of the TCFD you can turn to their webpage