— TCFD Reporting —
What is TCFD?
Task Force on Climate-related Financial Disclosures (TCFD)
The Financial Stability Board established the TCFD with the aim of increasing the clarity, relevance, and utility of climate-related information in the disclosures of organizations. With clearer insight into how organizations are handling the identification, assessment, and management of climate-related risks and opportunities, investors are better able to allocate their capital in a responsible manner.
The TCFD frames climate-related information in the business context into four pillars: governance, strategy, risk management, and metrics and targets. The TCFD recommends disclosure on each pillar. It also provides a set of 11 distinct recommended disclosures across the four pillars.
TCFD Reporting Implications
As climate-related risks (both transition and physical) become increasingly recognized as material factors for consideration in financial decision making and planning, global standard-setting institutions, financial institutions, and even regulatory authorities are looking to the TCFD as the basis for climate-related reporting.
While the original implementation of the TCFD’s recommendations was voluntary, plans for mandatory TCFD reporting are becoming more and more frequent. 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 it can help its stakeholders understand how they perform against this shifting environment.
GRESB TCFD Reports
GRESB is developing a TCFD reporting solution to help GRESB Members understand their climate-related assessment processes in accordance with the TCFD’s recommended disclosures. At the forefront of ESG reporting, GRESB is well placed to standardize climate-related information and provide a simple way for real asset managers to present their climate-related risk management to eager investors with minimum reporting burden.
- GRESB has been proactively monitoring the adoption of TCFD reporting across the real asset space.
- Stable growth in the participation of the GRESB Resilience Module indicates growing interest in the identification, assessment, and management of climate-related risk over the past 3 years
In 2021, GRESB integrated the Resilience Module into the main Assessments, forming the backbone of these entity-specific TCFD Reports. The relevant Assessment data will be restructured to be aligned with the TCFD’s 11 recommended disclosures and will leverage GRESB’s core capabilities in validation, transparent scoring, and peer benchmarking.
GRESB TCFD Report Indicator Overview
For a summary of the indicators from the main Assessments expected to constitute the underlying data for these reports, please refer to the GRESB TCFD Report Indicator Overview;
To keep informed on how GRESB’s TCFD solution will help you meet your climate-related disclosure needs, please register your interest here.
TCFD Resources, Articles, and Releases
Task force on Climate-related Financial Disclosures
Climate-related disclosure regulation and legislation
- New Zealand: Mandatory climate-related disclosures
- United Kingdom: A Roadmap towards mandatory climate-related disclosures
- United States: SEC Announces Enforcement Task Force Focused on Climate and ESG Issues (March 2021)
- PRI Technical Guide: TCFD for real assets investors (April 2021)
- PRI Webinar: Real assets investing and climate change: implementing the TCFD recommendations (April 2021)