TCFD: Why companies should do climate-related financial reporting
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Our solutions for the TCFD recommendations
By making their business activities and their environmental impacts transparent, companies put themselves ahead of the competition and can thereby strengthen the trust of customers, business partners, and investors. This has a lasting positive effect on the company’s development and also on its reputation as an employer. The recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) provide guidance on how to achieve a sustainable economy. Companies are currently not obligated to implement the TCFD’s recommendations, but these are increasingly being incorporated into other sustainability-related regulations such as the Corporate Sustainability Reporting Directive (CSRD). Companies pursuing the TCFD recommendations are already today reaping the benefits of being pioneers and profiting from the positive effects – thereby gaining a decisive advantage over their competitors.
Here you will find an overview of all relevant basic information on TCFD.
Our approach
Consistent management and disclosure of climate-related financial information is essential for understanding and assessing climate-related risks and opportunities. Our experts help your company implement the TCFD recommendations and take advantage of the inherent competitive potential. With their broad industry and functional expertise, they help identify the information required by investors, lenders, and insurance companies. This enables companies to make sustainable business and financial decisions reflecting a sense of responsibility and vision for climate change. Working together with you, we lay the foundation for meeting the future expectations of the regulatory authorities, adhering to sustainability principles, and managing the complex risks that arise. This lets you take advantage of the opportunities that arise for your company through the strategic inclusion of the climate change impacts with sustainability management and reporting.
Our solutions
We provide you with comprehensive advice and guidance: from initial contact with the TCFD recommendations, through the analysis of internal climate risk drivers, to implementation of the TCFD guidelines, and reporting. We offer a unique combination of expertise in climate regulation, governance, risk management, quantitative methods, and reporting. Our TCFD service is divided into three phases: Gap analysis and action plan, implementation, and reporting:
TCFD Gap Analysis
- Comparison of already available/disclosed information and existing processes, activities, and governance practices with TCFD requirements (target/actual comparison)
- Development of an implementation plan based on the TCFD’s four fields of action:
- Governance (alignment of governance structures with recommended climate responsibility for management/executive board)
- Strategy (impact of climate-related risks and opportunities)
- Risk management (identification, assessment, and management of climate-related risks)
- Key figures and objectives (assessment of climate-related risks and opportunities as well as the requirements for the reporting of greenhouse gas emissions)
Scenario analysis
- Scenario analysis to assess climate risk drivers:
- Identification of major risks and opportunities (consideration of physical risks and transition risks)
- Identification and definition of scenarios and selection of supporting tools
- Assessment of climate-related impacts by analyzing scenarios (impact on future financial situation and strategic plans)
- Development of appropriate measures to minimize identified risks
Implementation of the TCFD guidelines and reporting
- Support in implementing the TCFD guidelines for climate-related disclosures in terms of the fields of action:
- Evaluation of the greenhouse gas emissions (determine potential for reductions, CO2 reduction measures, and strategic implications)
- Review of the scenario analysis results
- Reporting on climate-related financial information in accordance with TCFD:
- Integration of TCFD reporting into overall corporate management and the internal control system
- Publication of the financial impacts of climate risks and opportunities
- Continuous improvement of TCFD data
Your benefits
Climate-related financial reporting helps you pursue a consistently sustainable strategy and also make a positive contribution to climate protection. In this way, you create transparency for all the stakeholders and facilitate your company’s access the capital market. Acting in a climate-conscious manner inspires confidence and strengthens your brand.
Contacts
Philipp Killius Partner Hamburg
Elma Sefer Periskic Partner Stuttgart
Wolfgang Völl Partner Düsseldorf
IFRS Sustainability Disclosure Standards
Das International Sustainability Standards Board (ISSB) hat am 26. Juni 2023 die ersten beiden IFRS-Standards zur Offenlegung von Nachhaltigkeitsinformationen veröffentlicht: IFRS S1 - Allgemeine Vorschriften für die Angabe von nachhaltigkeitsbezogenen Finanzinformationen und IFRS S2 zu klimabezogenen Angaben.
Sustainability Compliance-Quick-Check
Durch eine Vielzahl an neuen Regularien in verschiedenen Ländern hat das Thema Nachhaltigkeit deutlich an Aufmerksamkeit gewonnen. Besonders die EU verfolgt das Ziel, Finanzmittel für die notwendige Transformation in Richtung einer nachhaltigen Wirtschaft zu mobilisieren und umzulenken.
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