Task Force on Climate-related Financial Disclosures (TCFD) - McGrady Clarke
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Task Force on Climate-related Financial Disclosures (TCFD)

Implementing the Task Force on Climate-related Financial Disclosures (TCFD) recommendations for transparent and responsible financial reporting.

Satellite perspective of cloud formations over Earth, denoting global climate considerations as part of Task Force on Climate-related Financial Disclosures (TCFD)

What is TCFD?


The Task Force on Climate-related Financial Disclosures (TCFD) is a reporting framework established by the Financial Stability Board (FSB) and endorsed by the UK Government, to enhance transparency on the financial and operational implications of climate-related risks and opportunities on qualifying organisations. By reporting in-line with each of the TCFD recommended disclosures as part of their annual report, organisations can provide investors, lenders and insurers with clear, comprehensive and high-quality information to aid their long-term financial decisions. The eleven disclosure recommendations are structured around four core elements: Governance, Strategy, Risk Management and Metrics & Targets.

McGrady Clarke assists clients in not just meeting the mandatory requirements of TCFD reporting, but with embedding sustainability within the organisation to produce comprehensive disclosures. Our technical experts can help you navigate the complex requirements of TCFD.

A high viewpoint of rocks with a gap in the middle, symbolising potential challenges and opportunities in implementing Task Force on Climate-related Financial Disclosures (TCFD) recommendations

Who is required to comply with TCFD regulations?


  • Premium-listed and standard-listed companies who are subject to the Financial Conduct Authority (FCA) Listing Rules.
  • FCA-regulated companies should check the FCA Climate-related Disclosure Rules. Relevant types of entities include:
    • Asset Managers
    • Life Insurers (including pure insurers)
    • Non-insurer FCA-regulated pension providers, including platform firms and Self-invested Personal Pension (SIPP) operators.
    • FCA-regulated pension providers

A similar reporting framework, CFD, is in place for publicly quoted companies, large private companies and LLPs. Please refer to our CFD page for more information.

Ice Caps which are melting with TCFD compliance to help

The 4 Pillars of TCFD


The TCFD framework is structured around four key areas: Governance, Strategy, Risk Management and Metrics & Targets.

  • Governance details the organisation’s leadership and accountability mechanisms for climate-related risks and opportunities.
  • Strategy focuses on the actual and potential impacts of climate-related risks and opportunities on the organisation’s business, strategy and financial planning within different climate scenarios.
  • Risk Management outlines the processes for identifying, assessing and managing climate-related risks.
  • Metrics & Targets involves disclosing specific metrics and targets to assess and manage climate-related risks and opportunities, including greenhouse gas emissions data.

These pillars collectively guide organisations in providing transparent, relevant information about their approach to identifying and managing climate-related financial risks and opportunities.

A shipping boat docked at a port, representing the transportation sector's role in the Task Force on Climate-related Financial Disclosures (TCFD)

Analysis Requirements


The Task Force on Climate-related Financial Disclosures (TCFD) recommends that organisations conduct scenario analysis, ideally quantitative in nature, as part of their climate-related risk and opportunity assessments. Scenario analyses are utilised to assess the resilience of the organisation’s financial and operational strategy under a range of climate scenarios, including a 2°C or lower scenario. This approach offers valuable information for investors, lenders and insurance underwriters in their decision-making processes.

A quantitative analysis will enable companies to provide data-driven insights into how climate change may affect their financial and operational performance, whereas a qualitative method offers flexibility in exploring a wide range of potential outcomes and incorporating expert judgment without relying large volumes of numerical data .

Mountain range which has improved due to TCFD

Why Choose McGrady Clarke for your TCFD Disclosure?


At McGrady Clarke, our approach to TCFD is characterised by a strategic perspective that prioritises transparency and aims to deliver added value beyond basic compliance requirements. Our TCFD experts understand that navigating the complexities of TCFD compliance presents unique challenges and opportunities for organisations.

Our expertise is tailored to guide organisations through this process, ensuring a partnership that focuses on transparency and elevates your organisation’s sustainability narrative and stakeholder trust.

Aerial view of trees, some green and others brown, depicting environmental impacts and changes considered under the Task Force on Climate-related Financial Disclosures (TCFD)

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Satellite perspective of cloud formations over Earth, denoting global climate considerations as part of Task Force on Climate-related Financial Disclosures (TCFD)

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