What is TCFD reporting?
The Task Force on Climate-Related Financial Disclosures (TCFD) was created in 2015 by the Financial Stability Board (FSB) to develop a framework for companies, banks, and investors, to disclose climate-related financial risk to stakeholders. It was initially focused on financial 
institutions but is now becoming mainstream across all other industries.
The Task Force believes more urgent progress needs to be made to improve the transparency on the present and future impacts of climate change.
These four overarching recommendations, that are core elements of how organisations operate, are supported by key climate-related financial disclosures—referred to as recommended disclosures—that build out the framework with information that will help investors and others understand how reporting organisations assess climate-related issues.
‘Through widespread adoption, financial risks and opportunities related to climate change will become a natural part of companies’ risk management and strategic planning processes. As this occurs, companies’ and investors’ understanding of the potential financial implications associated with climate change will grow, information will become more decision-useful, and risks and opportunities will be more accurately priced, allowing for the more efficient allocation of capital.” — TCFD 2017 Report.
Does our organisation need to comply with TCFD?
In response, the UK Government made it mandatory for larger organisations to disclose climate risk in annual reporting from 6 April 2022.
The following companies now need to provide a climate-related financial disclosure:
- UK companies that have more than 500 employees and have either transferable securities admitted to trading on a UK regulated market or are banking companies or insurance companies (Relevant Public Interest Entities (PIEs));
- UK registered companies with AIM listed securities listed, and with more than 500 employees.
- UK registered companies not included in the categories above, which have more than 500 employees and a turnover of more than £500m
- Large LLPs, which are not traded or banking LLPs, and have more than 500 employees and a turnover of more than £500m and;
- Traded or banking LLPs which have more than 500 employees.
How Green Element can help you
Deliver initial training to all relevant personnel in the organisation
Develop a strategy for embedding climate risk in your existing business risk model
Identify the key stakeholders in your organisation who will ‘own’ each of the pillars
Identify additional training requirements and deliver these
Workshop / hackathons to identify and rank the business’s climate risks
Identify key personnel who can train others in the organisation to upskill in understanding, quantifying, and addressing climate risks
Agree an internal communications strategy for the pillar ‘owners’ e.g quarterly meetings, monthly updates on progress
Develop a road map for an initial TCFD statement in your annual report, followed by increasingly thorough responses to climate risk and TCFD reporting in subsequent years
Highlight areas for improvement in a regular review process, and review climate risks at regular intervals
institutions but is now becoming mainstream across all other industries.
Deliver initial training to all relevant personnel in the organisation
Develop a strategy for embedding climate risk in your existing business risk model
