Mission: Impossible? The reality behind the TCFD
28 November - 3.00 pm GMT | 4.00 pm CET | 10.00 am ET
Some things are incredibly difficult. Defusing a nuclear warhead. Scaling the Burj Khalifa. Fighting off scores of highly-trained assassins. How about the TCFD?
There’s a perception among some companies that the TCFD is complicated, that it’s incredibly hard to do a scenario analysis, that investors will drop them if they get their analysis wrong. Yet, it is now clear that the TCFD is crucial to the future of ESG disclosure.
With investors increasingly aligning towards companies that understand their climate risks, it’s more important than ever for organizations to get a firm grip on the framework. Three quarters of investors surveyed for the TCFD Status Report 2019 indicated that they are now using the TCFD disclosures when investing.
So the key questions are: are the TCFD recommendations really that hard? Why are some companies hesitant to adopt? And what has worked for those that have already started on this journey of reporting their climate risks and opportunities?
The Impossible Missions Force (our speakers)
Providing the investor, corporate and technology angles, our discussion showed that taking on board the TCFD’s recommendations is actually a lot easier than you think, that it’s a necessary journey, and that the results of inaction will likely be significantly more severe than taking the plunge.
During the live webinar, we discussed:
- The main difficulties companies are experiencing in using the TCFD framework.
- The solutions to the challenges of the TCFD and some best practices.
- How the TCFD presents an opportunity to break down internal silos and connect the dots between sustainability, risk and finance, while retaining board oversight.
- How to easily embed the TCFD recommendations into your business operations to ensure full and consistent corporate disclosure.
- How technology enables companies to monitor what else should be on their radar - what’s the next “climate risk?”
More on the TCFD
In his speech at the TCFD Summit in Tokyo on 8th October, Governor of the Bank of England Mark Carney warned that if companies do not agree on rules for reporting climate risks within two years, regulators will draw their own and make them compulsory. He also recently asserted that companies who do not take climate risks into account will go bankrupt.
Yet companies are still far from implementing strategic climate-related programs, and the financial dimension of climate risk remains poorly disclosed. In addition, very few organizations are carrying out scenario analysis to understand the potential outcomes of possible future events.