Task force on climate related Financial Disclosure (TCFD)

Market and investors are increasingly demanding companies for climate disclosure.
TCFD recommendations help businesses understand how climate change affects them. As TCFD guidelines are aligned with the CDP disclosure mechanism, combining them gives an indication both on businesses’ climate impact and on how climate change affects businesses.

By following TCFD recommendations, a company can identify climate risks and find new opportunities offered by their net-zero transition. In addition, businesses can evaluate the effectiveness of their climate strategy and disclose it with their investors and other stakeholders.

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Elements assessed in the reporting of climate aspects

GOVERNANCE
Definition of the role of the Board and Management in the management of climate aspects.

STRATEGY
Mapping of risks and opportunities associated with climate change and their impact on strategy and business model.

RISK MANAGEMENT
Definition of the process by which the company identifies, classifies and manages risks and opportunities related to climate change.

METRICS AND TARGETS
Definition of indicators, targets and KPIs used by the organisation to quantify and assess the impacts of climate change on strategy and risk management. Assessment and description of how the organisation ‘performs’ to its targets.

Why should you rely on Carbonsink?

To align a company’s strategy with the TCFD recommendations, Carbonsink’s approach includes defining the four central elements of Climate Reporting (governance – strategy – risk management – metrics and targets).

The result will allow the company to disclose the financial impacts of climate change – identified by the Task Force as having a key role in better informed financial decisions, investors, lenders, and insurance underwriters.