Use TCFD reporting and disclose with confidence

Task Force on Climate-related Financial Disclosures (TCFD) ble opprettet i 2015 av Financial Stability Board (FSB), og er et rapporteringsrammeverk som følges i mange deler av verden, inkludert EU, Canada og Japan, for å nevne noen. Hovedmålet er å gi organisasjoner innsikt i miljøpåvirkningen sin, slik at de kan ta mer bærekraftige valg for fremtiden.

TCFD reporting is a standardized framework that organizations 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 organization, 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, organizations must explain the role of leaders and management when it comes to analyzing and managing climate-related risks and opportunities.

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

Risk Management: The organization 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, organizations 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.