Best Practices for TCFD Reporting
As you embark on your TCFD reporting journey, there is a three-step approach for companies to identify climate-related risks and opportunities.
01. Perform a scenario analysis to identify all possible impacts of different climate conditions.
02. Assess financial implications of climate-related risks and opportunities. By doing a thorough scenario analysis, you’ll be able to evaluate how physical and transitional risks can affect income, assets, and capital allocation.
03. Calculate the true financial impact of climate events. Climate change isn't just an environmental issue – it's a business issue. By embedding climate considerations into your decision-making processes, you can future-proof your business and drive long-term value creation.
It’s important to embrace a mindset of continuous improvement. TCFD reporting is not a one-time exercise – it's an ongoing journey of learning and adaptation. Stay informed about the latest developments in TCFD and ISSB requirements, and be prepared to evolve your reporting practices accordingly.