The UK Government will mandate TCFD-aligned disclosures for a growing number of organisations over the next three years, under its Green Finance Strategy. Not surprisingly, many companies are already choosing to publish TCFD-aligned disclosures in their annual reports voluntarily.
Ignite are here to help your organisation better understand climate-related risks through the Task Force on Climate-related Financial Disclosures. The aim is to provide clarity and actionable information that can help your organisation mitigate risks around climate change as well as identify opportunities for positive action.
The TCFD provides a useful framework through which to assess the potential impact of climate change on your organisation through a series of disclosures. It provides insights into how you are identifying and managing risks, in turn demonstrating that you are engaging with serious issues. Included in your company filing, they can better inform investors, lenders, and insurers of the value of your company’s assets.
The TCFD frames climate-related information in businesses into four pillars:
The TCFD recommends disclosure on each pillar. It also provides a set of 11 distinct recommended disclosures across the four pillars.
To find out more about what TCFD is, visit our TCFD explainer page.
From 6th April 2022, the largest UK-registered companies and financial institutions will have to make climate-related financial disclosures in their mainstream annual reports.
Your organisation will need to comply if it is:
If you think your company will need to make mandatory TCFD-aligned disclosures in your annual report, Ignite can help. Talk to us about TCFD.
You may want to consider making voluntary TCFD-aligned disclosures even if you are not required to. Ignite can help you perform a gap analysis of your current disclosures and look at maximising the value of your disclosures.
Ignite will look at your current disclosures and match these up against the TCFD requirements. This will help us identify any gaps and agree on appropriate actions.
Like all our work around climate reporting, we work hard to create robust strategies and deliver actionable insights. We also aim to engage and get buy-in at all levels of your business.
With TCFD there is more of a focus on risk management around climate change as well as the operational side of the business around finances and strategy. The TCFD disclosures are a useful way to assess the value of your sustainability strategies supported by our expert insight.
The BEIS estimates that it will cost the average company £88,000 a year to comply with the TCFD disclosure requirements. By taking a data-driven approach and embedding this within your organisation’s strategy and operational processes, we offer a far more cost-effective way to comply with TCFD disclosure requirements.
Under each of the four core pillars there are a number of TCFD disclosures / recommendations. In addition, there are 11 recommended disclosures that sit across all of the four TCFD pillars. You can find out more information in the TCFD recommendations report.
Ignite help you meet these TCFD recommendations and ensure they have maximum impact for your organisation. The idea is that the recommendations feed directly into decisions and future planning.
Part of the TCFD recommendations is around stress-testing your climate change strategy. This is done by considering different scenarios such as a two degree rise in global temperature. It’s a way to test resilience as well as identify opportunities to improve your planning for various outcomes.
Ignite can help with the scenario analysis. Our experts are able to model each hypothetical scenario and look at the various implications. This allows us to make recommendations for improving your climate strategy and prepare for potential future outcomes.
Although not yet compulsory, it is beneficial to get ahead and to ensure your disclosures align with TCFD recommendations. Your organisation can start sharing its disclosures in your Annual Report. Ignite handle this process for you. Ignite will make sure that your TCFD disclosures and reporting are of the highest standard and satisfy all requirements.
We complete TCFD reporting as part of our end to end energy management service. It helps us provide a holistic and long term approach to sustainability that ensures you are best prepared for the future.
We specialise in identifying innovative efficiency projects to help future-proof your business.
Ignite Energy will support you with the relevant disclosures and to make TCFD a catalyst for positive change across your entire business. We can help you to understand your starting point and maximise the value of your current disclosures. What’s more, Climate Scenario analysis has been highlighted as best practice and comes as standard to fully satisfy TCFD guidelines.
Ignite have experience in energy efficiency projects, delivering paybacks of typically less than 3 years.
To take advantage of TCFD reporting and transform your organisation’s approach to energy efficiency and carbon net zero contact us today.
You can also find out more about our full energy compliance service.
