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?