Hello, I am Tonmoyee and I joined Carbonbit as an Associate Consultant for Sustainability following completion of my Master’s in Sustainable Energy and Environment from Cardiff University in 2021. I deal with ESG (Environmental, Social, Governance) reporting, assurance and energy auditing and assist the team at Carbonbit with a range of other projects. I believe that every day is a new day for learning and finding ways to make the world a better place in which to live and work!
I would like to welcome readers to our new series of Friday posts. This time we’re looking at the TCFD framework (Task Force on Climate-related Financial Disclosures) and its role in the crowded field of sustainability guidance and reporting frameworks.
TCFD began as a voluntary set of recommendations and have now become a part of the regulatory framework in many jurisdictions. As of 6 April 2022, TCFD reporting is mandatory for over 1300 large businesses in the UK.
So, what is the TCFD Framework?
TCFD was formed by the Financial Stability Board back in 2015 to improve and increase the reporting of climate-related financial information. It is important to note that the TCFD framework is not about how to disclose, but rather what to disclose. It acts as a guide to companies and allows wider stakeholders, especially investors and lenders, to understand the material risks and opportunities of climate change facing a company.
What to Expect?
Over the coming weeks we will discuss the 11 Recommended Disclosures which are divided into 4 pillars: Governance, Strategy, Risk Management, Metrics and Targets. However, if you want to delve deeper, I recommend accessing the resources on the TCFD Knowledge Hub (tcfdhub.org) alongside this excellent introductory video.