What is TCFD?
The Financial Stability Board established the Task Force on Climate-related Financial Disclosures (TCFD) so investors can benefit from more relevant, clear and consistent information regarding the financial risks and opportunities that companies face in light of climate change, evolving regulations, shifting consumer behavior and emerging technologies.
TCFD aims to increase the clarity, relevance and utility of climate-related information in organizational disclosure efforts so financial markets can focus on more sustainable and resilient investment options.
The TCFD recommends a set of 11 distinct disclosures across four thematic pillars:
3. Risk management
4. Metrics and Targets
TCFD reporting implications
As climate-related risks (both transition and physical) become increasingly recognized as material factors for consideration in financial decision-making, global standard-setting institutions, financial institutions, and regulatory authorities are looking to the TCFD as the basis for climate-related reporting.
While the TCFD’s recommendations were originally voluntary, plans to make TCFD reporting mandatory are growing in a number of jurisdictions. The entities in scope, timelines for roll-out and levels of TCFD-alignment are particular to each implementation. GRESB is actively watching these developments to ensure that we can help stakeholders understand how they will perform and can report in this new environment.
The GRESB TCFD Alignment Report
GRESB is developing a TCFD Alignment Report to help companies understand their climate-related processes in accordance with the TCFD recommendations. As a leader in ESG reporting, GRESB is well placed to provide a simple way for asset managers to present their level of climate-related risk management to investors with minimum reporting burden.
- With more than a decade of experience assessing, benchmarking and reporting on similar indicators, GRESB has a deep understanding of reporting adoption and can leverage its framework to provide TCFD insights.
- Our team has been monitoring TCFD since its inception, following key developments as they occur and anticipating changes so stakeholders can stay ahead of expectations.
- TCFD Alignment Reports will be created using the former GRESB Resilience Module, which is now integrated into the GRESB Assessments.
To keep informed on how GRESB’s TCFD solution will help you meet your climate-related disclosure needs, please register your interest below.Register