Task Force on Climate-related Financial Disclosures

What is TCFD?

The Task Force on Climate-related Financial Disclosures (TCFD) is an advisory body set up by the G20 to address concerns around insufficient disclosure of climate-related risks and opportunities for businesses. The Task Force is made up of 32 members, including PwC Partner Jon Williams, drawn from a range of industries and countries, with key perspectives as reporters of information or users of such information. The Task Force published its final recommendations in June 2017, which are intended to apply to all companies with listed debt or equity in the G20, and additionally to asset managers and asset owners (recognising that these organisations are typically unlisted).

"The right information allows sceptics and evangelists alike to back their convictions with their capital."

Mark Carney, Chair of Financial Stability Board and Governor of the Bank of England

The first publication of TCFD recommendations in June 2017 provided context, background, and the general framework for climate-related financial disclosures.

Aerial view of lined up solar panels

Key Features of TCFD:

  • Adoptable by all organisations
  • Included in Financial Filings
  • Designed to solicit decision-useful, forward-looking information on financial impacts
  • Focused strongly on risks and opportunities related to transition to lower-carbon economy

TCFD shifts the landscape on disclosure in three crucial ways:

  1. Away from the traditional backward looking sustainability-focused lens and towards a forward looking financially-focused view
  2. Broadening the perspective from a company’s impact on climate change to climate change’s impacts to the company through physical and transition risks
  3. Moving climate-related disclosures into mainstream reporting and away from standalone sustainability reports, thereby elevating such disclosures to require the same rigorous governance processes as financial reporting

How we can help?

TCFD Readiness Assessment Diagnostic Tool

In our experience, using the TCFD’s framework is a sensible way to start thinking about how your business deals with climate change as an issue. Our tool helps you understand the alignment of your public disclosures to the TCFD recommendations. It can be used to understand peer comparisons (see first image) and can also show the difference in disclosures between your annual report and other public disclosures (see second image). Leveraging our knowledge of the TCFD and our experience of helping our clients manage climate issues, we will provide you with

  • insight on your performance benchmarked against your peers; and
  • strategic and tactical recommendations to position your business to address climate opportunities and risks.

Please get in touch with us, using the contact details below, to help you get started.

Climate Scenario Analysis

Do you know how your business might be impacted and what the financial implications are?

Scenario analysis is a useful tool for understanding the climate implications for your business. This means applying a number of possible futures to your business to test strategic resilience and management response options. First movers will be able to align their businesses with emerging growth trends.

We believe that the low carbon transition presents every company with opportunities and risks. Explore our approach to scenario analysis to help inform your thinking. Our proprietary climate scenario models (covering physical and transitional impacts) can help you explore what climate change means for your business. Please get in touch to find out more.

Scenario analysis for financial institutions

As a financial institution, scenario analysis will require an additional lens to understand how your exposure to different sectors will be impacted from a risk and return perspective. Our climate scenario models extend to the financial sector through this additional lens. This allows translating of financial implications for different economic sectors into financial implications for your institution. If you’d like to explore this further, please get in touch using the contact details below.

Climate governance maturity assessment

Many organisations will be confident in the overall strength of their governance and risk management frameworks. However, it is probable that many will still be tailoring their approaches to reflect the exceptionally wide-ranging set of risk drivers that climate change represents.

Together with the World Economic Forum, in January 2019 we published a set of Principles for Effective Climate Governance, designed to help the reader practically assess and debate their organization’s approach to climate governance and frame their thinking about how to make this approach more robust.

Following widespread uptake of these Principles, we have developed a risk-based review of corporate governance processes, focussing specifically on the applicability of companies’ existing processes to management of climate risks. The review is built around the Principles and considers the maturity of governance processes in relation to each. Once complete, it will provide you with:

  • a rating on the maturity of your organisation’s governance processes in relation to each principle.

  • a set of recommendations for how you can prioritise and improve the areas where maturity is low.

Please get in touch with us, using the contact details below, to help you get started.

More info here: https://www.weforum.org/whitepapers/how-to-set-up-effective-climate-governance-on-corporate-boards-guiding-principles-and-questions

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Our experience with clients

We have worked with many clients to help them understand how climate change impacts their business through the use of scenario analysis. We’ve helped them understand how they could be financially impacted by physical and transitional risks and develop a strategic management response.

Our involvement with the TCFD

PwC UK Partner Jon Williams is a member of the TCFD and our firm has invested resources to support its work. The team has been working closely with the TCFD throughout the development of the framework and recommendations, as well as with running the public consultation and monitoring of TCFD adoption rates. Our PwC CI team has deep experience climate risk management and TCFD aligned disclosures for a range of corporates, and asset and wealth managers in the Channel Islands.

Our climate expertise

PwC Channel Islands has in-depth expertise in climate change and sustainability, governance and strategy, risk and change management, technology, reporting and assurance in the Asset and Wealth Management Sector. We believe that managing climate change as an issue should be integrated into existing governance structures, strategic approaches and risk frameworks. We will leverage the best combination of climate knowledge and skills alongside our traditional strengths to deliver for our clients.



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Contact us

Alison Cambray

Alison Cambray

Advisory Director, Sustainability, PwC Channel Islands

Tel: +44 7700 838337

Tori Davis

Tori Davis

Advisory Senior Manager, Sustainability, PwC Channel Islands

Tel: +44 7797 911714

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