TCFD Recommendations
From Open Risk Manual
Contents
Definition
The recommendations of The Task Force on Climate-Related Financial Disclosures (TCFD), led by the Financial Stability Board (FSB) as captured in the TCFD Report[1]
Recommendations
Governance
Disclose the organization’s governance around climate-related risks and opportunities:
- Describe the board’s oversight of climate-related risks and opportunities
- Describe management’s role in assessing and managing climate-related risks and opportunities.
Strategy
Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning where such information is material.
- Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.
- Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.
- Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2◦C or lower scenario.
Risk Management
Disclose how the organization identifies, assesses, and manages climate-related risks.
- Describe the organization’s processes for identifying and assessing climate-related risks.
- Describe the organization’s processes for managing climate-related risks.
- Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management.
Metrics and Targets
Disclose the metrics and targets used to assess and manage relevant climate- related risks and opportunities where such information is material.
- Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.
- Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 GHG Emissions, and the related risks.
- Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets.
References
- ↑ Climate-related Financial Disclosures: Examples of Leading Practices in TCFD Reporting by Financial Firms
