Following the COP21 climate conference in Paris, the financial stability board of the G20 countries was commissioned to develop a framework for the standardised risk reporting of companies. The resulting Task Force on Climate-Related Financial Disclosures (TCFD) published four recommendations in 2017, which serve as guidance for companies to voluntarily disclose climate-related financial information and data.
We support companies in the analysis and evaluation of future-oriented opportunities and risks resulting from climate change on their business model as well as in the consistent integration of the results into corporate reporting.
Following the TCFD recommendations, companies are expected to focus their climate reporting on climate-relevant opportunities and risks, to make statements about the solidity of their business model and to present the financial impact of the climate-relevant status quo and its development. It is required to conduct a scenario analysis and publish the results. The TCFD has developed recommendations for four categories, which companies should consider in their reporting: Governance, strategy, risk management and key figures and targets.
We offer companies a workshop for the introduction to the basics and core elements of the TCFD framework as well as guidance on how to integrate climate change related opportunities and risks into the business model in the context of climate reporting. Depending on the objectives and the company-specific situation, we can also support companies in building a solid climate reporting framework.
In order to check the scope and informative value of the own corporate reporting with regard to climate change impacts, a gap analysis will disclose shortcomings to the requirements of the TCFD. To do so, the categories published by the TCFD as well as the associated criteria are compared to your corporate reporting including annual, CDP or sustainability reports.
The results are presented using our gap analysis tool and will additionally be summarised in a final report.
The gaps identified during the analysis can thus be closed in cooperation with the company as part of a quick fix. The corresponding adjustment of the corporate reporting is carried out after the gaps have been identified. The associated content development depends largely on the informative value and scope of your current climate reporting.
On the basis of the gap analysis, text proposals are developed in line with the TCFD recommendations in order to close existing gaps in your climate reporting.
A comprehensive statement about the robustness of one’s own business model requires a long-term assessment of the effects of climate change. A scenario analysis thereby illustrates the development of the own business model in the context of different climate models. Various scenarios on the degree of global temperature increase are outlined and the resulting transition risks in the areas of politics and law, technology, market and reputation are identified. Furthermore, acute and chronic physical risks are considered. In addition to climate-related risks for the company, opportunities arising from climate change in the areas of resource efficiency, energy sources, products and services, markets and resilience are equally assessed.
We support companies in the long-term assessment of climate change-related opportunities and risks by conducting a scenario analysis. This takes place in the form of individual workshop series or through our tool “value@CarbonRisk”, which evaluates monetary effects. The results are summarised in a management report.