TCFD reporting – comprehensive climate risk management

TCFD stands for Task Force on Climate-related Financial Disclosures. The framework is designed to effectively disclose your company’s climate-related risks and opportunities.

Know the impact and manage your climate-related risks

The impact of global warming does not stop at companies. Transparency matters. Those who know how to manage the risks and use the opportunities are one step ahead.

What is the TCFD?

TCFD is the abbreviation of Task Force on Climate-Related Financial Disclosures. Its objective is to support the disclosure of information related to climate change. The assessment of risks is particularly important for the global financial market. The TCFD framework was established by the Financial Stability Board and contributes to a better understanding of the material risks associated with climate change.

Translating climate risks and opportunities in financial impacts (using TCFD as a framework)
Translating climate risks and opportunities in financial impacts (using TCFD as a framework)

How your business benefits from TCFD reporting

  • If you go for TCFD reporting, you assess the opportunities and threats arising from climate change for your business in a structured and recognized way.
  • TCFD is a major ESG reporting framework and an important source of information for investors, lenders and insurance companies. A climate-related financial disclosure leads to transparency and offers information that you can share with interested stakeholders.
  • TCFD strongly focuses on climate-related risks and therefore environmental topics, but offers also information on social and governance aspects of your company. Therefore, it plays an important role in corporate sustainability.
  • TCFD is already mandatory in some countries for large companies – for example, it is part of the CSRD climate standard. As the obligation is expected to be extended, companies would do well to deal with it at an early stage.

What should a climate-related financial disclosure include?

Disclosure according to TCFD takes place based on four pillars. For these four pillars, the company indicates the significance of climate-related risks and how it deals with them. Therefore, a TCFD gap analysis provides transparency in terms of:



Risk management

Metrics and targets

Our TCFD reporting services

TCFD is not a sprint, it is a marathon. Our sustainability experts have the endurance and expertise you need for your TCFD journey. With the following consulting services, we can reach the home stretch together:

Comprehensive TCFD support

From identifying and assessing the materiality of various physical and transitional climate risks and opportunities to the evaluation of the financial impact on your business – we support you on each step along the way on your TCFD journey. But we do not stop there. The “supreme discipline” of climate risk management is  climate scenario analysis.

TCFD gap analysis and recommendations workshop

As a starting point for companies already engaged in climate risk management and willing to take the next step, we perform comprehensive TCFD workshops. A structured TCFD gap analysis prior to the workshop offers the insights needed. In this whole process, we specify recommendations and the next steps on your TCFD journey. This also includes the consideration of how the information and data can be integrated into your annual reporting or CDP responses.

Climate scenario analysis

Your company already has a mature climate risk inventory and assesses financial impacts? In this case, we perform scenario analysis to also cover the forward-looking perspective of TCFD. Our team brings a diverse natural science background into the projects, which enables us to understand and manipulate comprehensive scientific data on climate scenarios and match that information with the climate risk management of our clients.

Integrate TCFD into annual reporting

As the climate reporting landscape becomes wider and more complex, we help our clients navigate through the diverse regulations, standards, and frameworks and find a fitting approach for annual reporting of climate risk information and underlying data management.

Reach out to our expert to find a solution that suits your company!

Constantin Saleta

International Service Leader Decarbonization

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Frequently asked questions on TCFD

TCFD reporting focuses on the climate-related impact on companies. The TCFD framework supports companies in the disclosure of their risks.

TCFD recommendations are still voluntary for most companies, although more and more governments are considering TCFD-compliant legislation. The UK government kicked things off. But as climate change has an impact on the economy worldwide, the reporting of climate-related financial information is becoming an essential part of a successful business. So, even if it is not yet mandatory for you, we recommend you deal with your company’s climate-related risks in good time.

A structured climate risk identification process shows you potential climate risks and opportunities for your company. Based on this climate risk inventory, we can perform a climate risk materiality assessment using qualitative or quantitative approaches. This reveals what climate risks are material for your business. The evaluation of the financial impact requires a deep understanding of how those material climate risks affect your business – we support you with our expertise.

A climate scenario analysis is based on your current climate risk inventory and helps you understand how your current climate risk profile might develop under future climate conditions. Using established scenarios, such as those developed by IPCC, IEA, or NGFS, we perform such analyses – the basis is an established climate risk inventory and materiality assessment.

In a climate scenario analysis, we help you to think decades ahead and assess how the future development of current risks and opportunities under different climate scenarios, such as the IPCC or IEA scenarios, might affect your company. Our approach entails developing chains of effect per material climate risk to better understand the connections between climatological variables, scenario parameters, the KPIs of our client, and financial impacts on the business. By applying climate data and other indicators from different climate scenarios, such as IPCC RCPs in these equations, we analyze how the impact on your business might be affected by future climate change. This enables you to react early on and develop and implement adaptation measures that ensure your company’s climate resilience in the near and long term.

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