In our final TCFD post we talk about how companies can start reporting in line with the TCFD framework.
A good starting point for businesses beginning their TCFD journey is to consider TCFD’s first pillar: Governance. This involves top down buy-in from company board members and senior leaders about the need for climate literacy – awareness of climate related risks and disclosure is crucial. Identify appropriate employees’ roles in the climate-related governance processes.
We recommend undertaking an organisation-specific pre-assessment gap analysis to identify and prioritise any issues concerning alignment with TCFD. This phase will showcase the readiness of the company to align with TCFD. For example, better reporting on climate related risk processes or improving climate related key performance indicators in CEO and CFO incentive schemes.
We have reviewed a number of companies who have successfully embarked on their TCFD journeys; in fact as of January 2022 the number of TCFD supporters was said to be circa 3,000 organisations from 92 countries! We quite like Burberrys’ approach – see below.
It is important to remember that TCFD reporting is a journey and not a ‘pass/fail’ exercise or a rating system. Simply put, it’s a series of recommendations that allows companies to improve approaches to managing climate risks and opportunities and at the same time, as stakeholders become increasingly more climate conscious, meet investor market and regulatory demands. So, take the leap and start early!
We hope you have found our short series of posts on TCFD useful; if your organisation requires support on its TCFD journey, please email us at email@example.com#Carbonbit climateliteracy climaterisk TCFD