Creating value from disclosure
There has been a step change in the way governments are addressing climate change. To keep the Paris Agreement goal within reach - limiting global temperature increases to 1.5 degrees Celsius - adopting new regulatory frameworks is a crucial step forward.
As national policies are put in place to accelerate the transition to a low carbon economy, companies find themselves at the heart of this change.
Through the recommendations set out by the UK Task Force for Climate-related Disclosures (TCFD), businesses can improve the way they report climate-related risks and opportunities, and take action.
While already widely used on a voluntary basis, the UK is the first major economy to mandate the use of the TCFD framework. Forward-thinking business leaders are assessing the risks and opportunities climate change poses to their business, employees and stakeholders.
Climate-related issues can be looked at from both a risk and impact lens. It’s not just the impact of a business on the environment, but the capacity for the future environment to disrupt business. We call this the “outside in” and “inside out” view.
By reporting against the TCFD framework, your business will be forced to face real, climate-related risks and opportunities. Improved understanding can help you adapt your business and pivot towards growth.
We can help you wherever you are on your journey. Our breadth of experience, combined with our tech-enabled tools, ensure you take a proportionate approach to implementing TCFD requirements.
TCFD regulation has expanded. In addition to premium listed companies, standard listed companies and large private businesses are now required to publish disclosures as part of their annual accounts. We can help.
We know every business has different needs, so we’ve built that into our approach.
Across four workstreams, we can flex our level of support to ensure we work together effectively.
We offer three tiers of support, guiding you through relevant steps to achieve TCFD compliance. Scale 1 is an entry-point solution to quickly get you up to speed on TCFD reporting. Scale 2 offers an additional level of detail to ensure you maximise the value of your reporting. Finally, we offer bespoke programme support for more complex requirements and tailored scenario planning.
Some of these tools will be delivered through our Scale methodology (above) depending on your requirements.
By disclosing against the TCFD framework, your business will be forced to face real, climate-related risks and opportunities. Our TCFD Readiness Assessment Diagnostic tool helps you understand the alignment of your public disclosures to the TCFD recommendations. It can be used to understand peer comparisons and show the difference in disclosures between your annual report and other public disclosures.
With a seat at the TCFD taskforce, and having helped multiple clients on their TCFD journey, we can help you:
Gain greater insight on your performance benchmarked against your peers; and
Please get in touch with us, using the contact details below, to help you get started.
Following our work with the World Economic Forum (WEF), we have developed a Climate Governance Maturity Framework. This framework builds on the WEF’s Climate Governance Principles, and acts as an assessment of how well climate risks and opportunities are embedded within an organisation’s central governance framework.
It helps uncover areas where ESG governance and reporting can be improved, and equips businesses with a toolkit to assess their maturity of climate governance against each of the WEF’s eight Principles.
Taking a systematic approach, businesses can understand how well-suited their existing governance is at detecting, monitoring and managing climate change risks and opportunities, relative to the climate risk profile of the organisation.
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.
Our proprietary climate scenario models (covering physical and transition impacts) can help you explore what climate change means for your business. Find out more about our Physical Climate Analytics tool, powered by Jupiter Intelligence™.
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 the translation of financial impacts for different economic sectors into financial implications for your institution.
Having worked with clients on their TCFD requirements since the task force’s inception, we know what good looks like.
We have access to the latest updates on the TCFD with Jon Williams, PwC Partner, a member of the task force. Involved in the development of the framework, and its recommendations, we understand how to make TCFD disclosures most effective for your business. We continue to be involved with running the public consultation and monitoring of TCFD adoption rates.
Our expert team has knowledge spanning across governance and strategy, risk and change management, technology, reporting and assurance. We combine specialist technology with our insight to deliver strong results.
Partner, Global Banking & Capital Markets ESG leader and UK chair, Sustainability & Climate change, PwC United Kingdom
Tel: +44 (0)7595 609666
Assistant Director, Sustainability & Climate Change, PwC United Kingdom
Tel: +44 (0)7483 440137