Sustainable practices can be the key to avoiding rising energy prices. But how can businesses...Read more
The Task Force on Climate-related Financial Disclosures (TCFD) was established in 2015, by the international Financial Stability Board. The task force was created to improve and encourage climate-related financial reporting. This includes reporting on the risks presented by rising global temperatures, and the opportunities afforded by new technology and shifting policy.
In a competitive landscape, the need for corporate transparency is greater than ever, especially in regard to climate-related disclosures. Transparency helps to build trust among customers, investors and employees. For this reason, organisations that decide to implement the TCFD reporting recommendations will have a competitive advantage over those that don’t.
But why should businesses comply with TCFD? And what are the benefits of the TCFD regime?
In November 2020, UK Chancellor Rishi Sunak announced plans for the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations to become mandatory by 2025. This will apply to most sectors of the economy, and will cover listed companies, banks, and large private businesses.
Whilst it is strongly advised that businesses comply with TCFD, the reporting regime currently remains voluntary. The recommendations were put in place as guidance, to help businesses identify risks and opportunities as the climate crisis continues. Complying could also lead to an increase in sustainable investments. This could in turn build a resilient economy, during a time of turbulent weather patterns.
The initiative provides clear and comprehensive recommendations, supporting the shift to a green economy. It has never been more important for businesses to set ambitious emissions reduction targets and mitigate climate-related risks.
To support a transition to a low carbon economy, companies need to disclose accurate and reliable climate-related financial data. Businesses that do not report could be vulnerable to reputational and financial consequences.
But these climate-related risks can bring opportunities for businesses, that come from both safeguarding against them and accurately reporting them. These benefits include:
At EIC, our dedicated team of carbon consultants and analysts offer the highest standard of service to our clients. With our years of experience, and talent for spotting new and innovative solutions, we can identify effective and efficient carbon compliance solutions. Tailored specifically for each unique business.
Our expert team will:
To learn more about how we can help you with the gathering and reporting on relevant climate-related data, download our TCFD guide today.