Difference between revisions of "TCFD Recommendations"
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== Definition == | == Definition == | ||
− | The recommendations of | + | 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<ref>Climate-related Financial Disclosures: Examples of Leading Practices in TCFD Reporting by Financial Firms </ref> |
== Recommendations == | == Recommendations == | ||
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=== Governance === | === Governance === | ||
Disclose the organization’s governance around climate-related risks and opportunities: | Disclose the organization’s governance around climate-related risks and opportunities: | ||
− | |||
* Describe the board’s oversight of 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. | * Describe management’s role in assessing and managing climate-related risks and opportunities. | ||
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=== Strategy === | === 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. | 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. | ||
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* Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term. | * 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 impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning. | ||
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=== Risk Management === | === Risk Management === | ||
Disclose how the organization identifies, assesses, and manages climate-related risks. | Disclose how the organization identifies, assesses, and manages climate-related risks. | ||
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* Describe the organization’s processes for identifying and assessing 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 the organization’s processes for managing climate-related risks. | ||
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=== Metrics and Targets === | === 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 and targets used to assess and manage relevant climate- related risks and opportunities where such information is material. | ||
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* Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process. | * 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. | * Disclose Scope 1, Scope 2, and, if appropriate, [[Scope 3 GHG Emissions]], and the related risks. |
Revision as of 16:21, 12 October 2021
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