Open Access
Table 1
TCFD Recommended Disclosures [12].
| Elements | Disclosures | Guidance |
|---|---|---|
| Governance | Describe the board's oversight of climate-related risks and opportunities | In describing the board's oversight of climate-related issues, organizations should consider including a discussion of the following: • processes and frequency by which the board and/or board committees (e.g., audit, risk, or other committees) are informed about climate-related issues, • whether the board and/or board committees consider climate-related issues when reviewing and guiding strategy, major plans of action, risk management policies, annual budgets, and business plans as well as setting the organization's performance objectives, monitoring implementation and performance, and overseeing major capital expenditures, acquisitions, and divestitures, and • how the board monitors and oversees progress against goals and targets for addressing climate-related issues. |
| Describe management's role in assessing and managing risks and opportunities | In describing management's role related to the assessment and management of climate-related issues, organizations should consider including the following information: • whether the organization has assigned climate-related responsibilities to management-level positions or committees; and, if so, whether such management positions or committees report to the board or a committee of the board and whether those responsibilities include assessing and/or managing climate-related issues, • a description of the associated organizational structure(s), • processes by which management is informed about climate-related issues, and • how management (through specific positions and/or management committees) monitors climate-related issues. |
|
| Strategy | Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term. | Organizations should provide the following information: • a description of what they consider to be the relevant short-, medium-, and long-term time horizons, taking into consideration the useful life of the organization's assets or infrastructure and the fact that climate-related issues often manifest themselves over the medium and longer terms, • a description of the specific climate-related issues for each time horizon (short, medium, and long term) that could have a material financial impact on the organization, and • a description of the process(es) used to determine which risks and opportunities could have a material financial impact on the organization. |
| Describe the impact of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning | Organizations should discuss how identified climate-related issues have affected their businesses, strategy, and financial planning. Organizations should consider including the impact on their businesses and strategy in the following areas: • Products and services • Supply chain and/or value chain • Adaptation and mitigation activities • Investment in research and development • Operations (including types of operations and location of facilities) Organizations should describe how climate-related issues serve as an input to their financial planning process, the time period(s) used, and how these risks and opportunities are prioritized. Organizations' disclosures should reflect a holistic picture of the interdependencies among the factors that affect their ability to create value over time. Organizations should also consider including in their disclosures the impact on financial planning in the following areas: • Operating costs and revenues • Capital expenditures and capital allocation • Acquisitions or divestments • Access to capital If climate-related scenarios were used to inform the organization's strategy and financial planning, such scenarios should be described |
|
| Describe the resilience of the organisation's strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. | Organizations should describe how resilient their strategies are to climate-related risks and opportunities, taking into consideration a transition to a lower-carbon economy consistent with a 2°C or lower scenario and, where relevant to the organization, scenarios consistent with increased physical climate-related risks. Organizations should consider discussing: • where they believe their strategies may be affected by climate-related risks and opportunities; • how their strategies might change to address such potential risks and opportunities; and • the climate-related scenarios and associated time horizon(s) considered. |
|
| Risk Management | Describe the organization's processes for identifying and assessing climate-related risks | Organizations should describe whether they consider existing and emerging regulatory requirements related to climate change (e.g., limits on emissions) as well as other relevant factors considered. Organizations should also consider disclosing the following: • processes for assessing the potential size and scope of identified climate-related risks and • definitions of risk terminology used or references to existing risk classification frameworks used. |
| Describe the organization's processes for managing climate-related risks. | Organizations should describe their processes for managing climate-related risks, including how they make decisions to mitigate, transfer, accept, or control those risks. In addition, organizations should describe their processes for prioritizing climate-related risks, including how materiality determinations are made within their organizations. | |
| Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization's overall risk management. | Organizations should describe how their processes for identifying, assessing, and managing climate-related risks are integrated into their overall risk management. | |
| Metrics and Targets | Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process. | Organizations should consider including metrics on climate-related risks associated with water, energy, land use, and waste management where relevant and applicable. Where climate-related issues are material, organizations should consider describing whether and how related performance metrics are incorporated into remuneration policies. Where relevant, organizations should provide their internal carbon prices as well as climate-related opportunity metrics such as revenue from products and services designed for a lower-carbon economy. Metrics should be provided for historical periods to allow for trend analysis. In addition, where not apparent, organizations should provide a description of the methodologies used to calculate or estimate climate-related metrics. |
| Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks. | Organizations should provide their Scope 1 and Scope 2 GHG emissions and, if appropriate, Scope 3 GHG emissions and the related risks. GHG emissions should be calculated in line with the GHG Protocol methodology to allow for aggregation and comparability across organizations and jurisdictions. As appropriate, organizations should consider providing related, generally accepted industry-specific GHG efficiency ratios. GHG emissions and associated metrics should be provided for historical periods to allow for trend analysis. In addition, where not apparent, organizations should provide a description of the methodologies used to calculate or estimate the metrics. |
|
| Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets. | Organizations should describe their key climate-related targets such as those related to GHG emissions, water usage, energy usage, etc., in line with anticipated regulatory requirements or market constraints or other goals. Other goals may include efficiency or financial goals, financial loss tolerances, avoided GHG emissions through the entire product life cycle, or net revenue goals for products and services designed for a lower-carbon economy. In describing their targets, organizations should consider including the following: • whether the target is absolute or intensity based, • time frames over which the target applies, • base year from which progress is measured, and • key performance indicators used to assess progress against targets. |
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