Understanding TCFD Reporting
Let's start with the basics.
TCFD stands for Task Force on Climate-related Financial Disclosures. It's a framework designed to help companies disclose climate-related risks and opportunities in a clear, consistent, and comprehensive manner.
Think of it as a roadmap for businesses to navigate the ever-changing landscape of climate change. The framework comprises four key components:
- Governance
- Strategy
- Risk management
- Metrics and targets
Each component plays a crucial role in helping companies understand and communicate their approach to climate-related issues.