A Practical Guide to the Task Force for Climate Related Financial Disclosures and its Implications for Companies
The Task Force for Climate Related Financial Disclosures (TCFD) estimates that “the expected transition to a lower-carbon economy will require around $1 trillion of investments a year for the foreseeable future. At the same time, the risk-return profile of organizations exposed to climate-related risks may change significantly as such organizations may be more affected by physical impacts of climate change, climate policy, and new technologies.” To equip investors with the most valuable indicators for how vulnerable and/or resilient companies will be under various climate-related scenarios, the TCFD has put forth recommendations on which metrics are most valuable for corporates to provide to investors and lenders.
In 2018, CDP released new questionnaires fully aligned with the recommendations put forth by the TCFD in order to provide the framework through which companies can disclose on these relevant metrics and indicators. This session will review the new indicators proposed by the TCFD, the importance of those metrics, and how disclosing through CDP’s new questionnaires enables companies to communicate their alignment with the TCFD.