Use TCFD reporting and disclose with confidence

Created in 2015 by the Financial Stability Board (FSB), the Task Force for Climate-related Financial Disclosures or TCFD is a reporting framework followed in many regions of the world including the European Union, Canada, and Japan to name a few. Its main goal is to allow organisations to see the impact they have on the environment, allowing them to make more sustainable choices in the future.

TCFD reporting is a standardised framework that organisations should follow when reporting their emissions. This is based on several recommendations according to the TCFD pillars to provide greater clarity to third parties (such as investors), exactly what their greenhouse gas emissions are, management of climate-related risks on their organisation, and how they plan to address these in the future.

There are four TCFD pillars: Governance, Strategy, Risk Management, and Metrics and Targets.

Governance: Under the governance pillar, organisations must explain the role of leaders and management when it comes to analysing and managing climate-related risks and opportunities.

Strategy: Here, all climate-related risks and opportunities must be identified and their impact on the organisation, in terms of future plans and finances, must be explained.

Risk Management: The organisation must explain how they will manage the climate-related risks identified and their methods for aligning them with the company’s risk management procedures.

Metrics and Targets: Under this pillar, organisations must reveal their GHG emissions values and what metrics and targets were used to analyse the climate-related risks and opportunities.

Yes! This has already been in effect for some companies as of April of 2022, when TCFD reporting became mandatory for all companies located in the United Kingdom with over 500 employees. In 2025, this will become mandatory for all companies.

Greenhouse gases are those which absorb heat from the sun, causing the atmosphere’s temperature to rise. They include carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, peItrfluorocarbons, sulphur hexafluoride, and nitrogen trifluoride. It’s important to be aware of what greenhouse gases your company is emitting by calculating your Scope 1, 2, and 3 emissions.

Greenhouse gas reporting includes your Scope 1, 2, and 3 emissions.  

Scope 1 emissions are direct emissions from areas under your company’s control. This includes fuel used for office heating or energy needed to create equipment. 

Scope 2 emissions are indirect emissions created from the generation of electricity, heat or cooling. 

Scope 3 emissions are all other indirect emissions which include employee commuting, business travel, and waste disposal to name a few.