There is no doubt that businesses are experiencing dramatic cost implications resulting from extreme weather events. They are unquestionably on the rise, both in frequency and severity.
To transition to a low-carbon economy envisioned in the Paris Agreement, the public and private sectors must contribute substantial funds. In 2015, the Task Force on Climate-related Financial Disclosures (TCFD) was therefore established to support financial markets in adapting to the impacts and increasing financial losses caused by climate change.
The TCFD developed voluntary recommendations on climate-related information that companies should disclose in their mainstream financial filings. Environmental disclosure in line with TCFD recommendations is designed for the market to offer further transparency, enabling investors, insurers, lenders, and others to make sound financial decisions in a changing world.
It is crucial for companies to begin integrating climate risk into their reporting and disclosure processes. In November 2020, the UK announced that reporting in line with the recommendations of the TCFD will become mandatory by 2025 across the economy, with premium listed companies expected to comply by the end of this year. Furthermore, Principles for Responsible Investment (PRI) has made reporting on TCFD indicators for strategy and governance mandatory for its signatories.
For businesses to adapt and succeed in a world increasingly affected by climate change, risk management and decision-making must consider environmental issues. Download our TCFD guide here or get in touch today to discuss TCFD and your requirements with one of our expert consultants.
Download our guide to TCFD for expert insights on:
more than a word.