TCFD: climate risks and financial reporting
The TCFD (Task Force on Climate-related Financial Disclosures) is a framework for reporting climate-related risks and opportunities to investors.
The four pillars
The TCFD structures information around four pillars: governance, strategy (including scenario analysis), risk management, and metrics and targets (including GHG emissions). Its principles largely inspired the ESRS and IFRS S2 standards.
The role of the carbon assessment
Expected metrics include Scope 1/2/3 emissions and targets. A solid carbon assessment is essential. UltraCarbon provides this data and the trajectory.
Frequently asked questions
Is the TCFD still relevant?
Its recommendations have been integrated into the IFRS S2 standards and inspire the ESRS. The logic remains fully relevant.
What is a scenario analysis?
Assessing the company's resilience to different climate scenarios (for example 1.5°C, 2°C, 4°C) and transition pathways.
