Managing climate risk is hard. Before now, it was optional for businesses to choose to what extent they needed to address the risks associated with the effects of global warming and the transition to a low-carbon economy. This is changing.
Created by the Financial Stability Board, the TCFD has set out its series of recommendations to establish a framework for businesses to manage climate risks; both transition and physical, and benefit from the related opportunities.
The potential impacts of climate change demand attention and require businesses to be prepared. The TCFD delivers a structure for organisations to disclose the impacts of climate change on financial performance, consistently and in a way that is comparable, to enable companies to redefine and future-proof their business on their journey to net zero.