Strategic tool or box-ticking exercise?
With the incoming Task Force on Climate-related Financial Disclosures (TCFD) reporting requirements, companies, on a global scale, will be required to stress-test their operations against climate-related financial impacts.
⇲ But are businesses ready to complete this analysis?
⇲ How is TCFD perceived by the business community?
⇲ What are the reporting challenges and opportunities they foresee?
This report explores the findings from our recent UK survey of 100 C-suite professionals across sectors, to reveal how businesses will navigate the transition to net zero and our changing climate.
Businesses are confident about meeting net-zero targets
With growing concerns over pledge versus action, it was encouraging to find that more than three-quarters of businesses are prepared to meet net-zero targets by 2035 and 73% are ready to report in line with TCFD recommendations from 06 April 2022.
Yet despite this optimism, only 7% of boards discuss climate risks monthly, suggesting a disconnect between senior commitment and the leadership required to drive organisations’ response to climate change.Find out more in our TCFD survey report
Businesses think TCFD regulations are an improvement on other standards
With more than 400 global sustainability standards, it is unsurprising that 85% of businesses feel confused about which disclosures they should be adopting. Despite this, 60% are optimistic that TCFD will encourage more of the strategic, senior-level discussions on climate change that appear to be lacking and 82% agree that mandatory TCFD reporting will facilitate industry benchmarking by making it easier to compare how companies are preparing their businesses for tackling mounting climate risks.Learn more in our TCFD survey report
Businesses need more guidance on the path to net zero
With no set guidelines on how much to report, more than three-quarters of businesses confirmed they are likely to reduce what they disclose to avoid commercially sensitive information. 73% agreed that this freedom to interpret reporting requirements will likely lead to TCFD reporting being seen as greenwashing.
While TCFD is a step in the right direction, more needs to be done to address reporting ambiguity and to guide companies on how to move from risk profiling to developing effective-transition strategies.Continue reading TCFD survey report
“When you’re mandated to ascribe a monetary value and risk level to climate change impacts on your business, the board starts listening.”
“TCFD provides a framework that regulators can understand, and translate across businesses, to manage other emerging ESG issues.”
“We must start discussing transition plans. A blinkered focus on climate risks will often fail to see the immense opportunities created by our transition to net zero.”
Webinar: Is your business ready to report in line with the TCFD’s latest regulations?
Ahead of the upcoming introduction of reporting regulations, we hosted a webinar to explore best practices, lessons learned from early TCFD adopters and the future of TCFD and sustainability disclosures with experts from the Financial Reporting Council, the New Zealand Ministry for the Environment and the International Financial Reporting Standards Foundation sharing their experiences and insights.
Missed the webinar? Watch again here.
Guide: Six steps to effective TCFD reporting
We know the TCFD reporting process can seem daunting, particularly for those without technical training. So we have incorporated the hard-earned wisdom of leading experts in the field to produce a simple, easy to follow guide for first-time reporters, to help you get the most value out of your first TCFD report.
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