Task Force on Climate-related Financial Disclosures
TCFD provides climate-related financial risk disclosures for investors and companies.
Find a consultantWhat is it?
The Task Force on Climate-related Financial Disclosures (TCFD) is an initiative established by the Financial Stability Board (FSB) in December 2015. The primary aim of TCFD is to develop recommendations for more effective climate-related disclosures. These provide investors, lenders, and insurance underwriters with information about the financial implications of climate change.
The TCFD's recommendations revolve around four primary pillars:
- Governance: Disclosures ought to include information about the organization�s governance surrounding climate-related risks and opportunities.
- Strategy: Organizations are recommended to disclose the actual and potential impacts of climate-related risks and opportunities on their business, strategy, and financial planning.
- Risk Management: Firms should explain the process they use to identify, assess, and manage climate-related risks.
- Metrics and Targets: Companies are encouraged to disclose the metrics and targets they use to assess and manage climate-related risks and opportunities, including greenhouse gas emissions.
The TCFD promotes organizations to provide transparent and consistent reporting on climate-related risks and opportunities. Reporting of this kind facilitates informed decision-making by all stakeholders. This initiative has seen extensive global endorsement from numerous countries and organizations, marking it as a progressive framework for climate-related financial disclosures.
Who is it for?
The Task Force on Climate-related Financial Disclosures (TCFD) is designed for a wide range of stakeholders involved in financial markets and corporate governance. It serves key purposes for several groups:
1. Investors
Assists in making informed decisions by providing standardized climate-related financial information. This enhances transparency and comparability across companies.
2. Companies
Providing guidance in assessing their climate-related risks and opportunities and aiding in improving their disclosure practices for better engaging with all stakeholders.
3. Lenders and Insurers
Enabling better risk assessment and management regarding their financial exposures to climate-related impacts.
4. Regulators and Policymakers
Providing a framework for understanding climate-related risks in the financial system and supporting the development of appropriate policies.
5. Other Stakeholders
Including non-governmental organizations, academia, and the public, who are concerned about climate change and seek enhanced accountability from companies concerning their environmental impact.
In essence, the TCFD aims to enhance overall integration of climate-related risks into the financial reporting and decision-making processes of organizations globally.
When was it introduced?
The Task Force on Climate-related Financial Disclosures (TCFD) was officially established in December 2015 by the Financial Stability Board (FSB). The TCFD's final recommendations on climate-related financial disclosures were shared with the public in June 2017.
Since 2017, the TCFD has consistently engaged in refining and promoting the implementation of its recommendations. They have provided several updates and supplementary resources post the initial release in 2017. Their ongoing collaboration with stakeholders has enabled them to constantly improve and adapt their framework aligning it with the emerging best practices and requirements in the domain of climate-related financial disclosures.
For information on any specific updates or new versions released after 2017, feel free to reach out to us.
Why is it important?
The Task Force on Climate-related Financial Disclosures (TCFD) holds a significant role for several reasons:
- Standardization: TCFD provides a standardized framework for companies to disclose climate-related financial risks and opportunities. This standardization makes it simpler for investors and stakeholders to comprehend and compare such information across different organizations.
- Transparency: TCFD encourages organizations to disclose relevant climate-related data, promoting a better understanding of how these companies manage the risks associated with climate change. This enhanced transparency helps investors in making informed decisions.
- Risk Management: The TCFD framework aids companies in identifying and managing climate-related risks, which can significantly impact their finances. Accurate risk assessment helps protect companies from potential losses and contributes to their long-term sustainability.
- Investor Demand: Investors are increasingly seeking better climate-related disclosures. TCFD caters to this growing demand by providing a structure that enables effective communication on how climate risks could impact financial performance.
- Alignment with Global Initiatives: TCFD aligns with international climate goals, such as those stipulated by the Paris Agreement. This alignment helps companies contribute effectively towards the global efforts to tackle climate change.
- Encouraging Resilience: By emphasizing the potential impacts of climate change on operations and strategies, TCFD guides companies to build resilience against climate-related disruptions.
- Facilitating Capital Allocation: The improved disclosure of climate-related risks under TCFD guidance helps in appropriate capital allocation towards sustainable projects and enterprises. This fosters the transition to a low-carbon economy.
In conclusion, TCFD plays an essential role in enhancing the understanding and management of climate-related risks within the financial system, promoting a more resilient and sustainable future.
What do organisations need to do?
The Task Force on Climate-related Financial Disclosures (TCFD) provides a framework for organisations to disclose climate-related risks and opportunities. To comply with TCFD recommendations, organisations should follow these key steps:
Governance
Organisations must disclose how climate-related risks and opportunities are overseen by the board and managed by senior leadership. This includes defining the role of the board in reviewing and guiding climate-related strategy and risk management.
Strategy
Organisations need to outline the actual and potential impacts of climate-related risks and opportunities on their business, strategy, and financial planning. This involves assessing how climate change may affect operations, supply chains, and long-term growth.
Risk Management
Organisations must describe how they identify, assess, and manage climate-related risks. This includes integrating climate risks into the organisation�s overall risk management process and ensuring appropriate mitigation measures are in place.
Metrics and Targets
To comply, organisations must disclose the metrics they use to assess climate-related risks and opportunities, such as carbon emissions, water use, or energy consumption. Additionally, organisations should set and disclose climate-related targets to track progress, such as emissions reduction goals aligned with global climate targets.
Scenario Analysis
Organisations are encouraged to use scenario analysis to evaluate the potential impact of different climate scenarios (such as global temperature rise scenarios) on their business. This helps assess long-term climate risks and supports more informed decision-making.
Regular Reporting
Organisations should include climate-related disclosures in their annual financial filings or sustainability reports, ensuring that investors and stakeholders are informed about how the company is managing climate-related risks and opportunities.
What are the benefits?
The Task Force on Climate-related Financial Disclosures (TCFD) provides several key benefits for organizations, investors, and the broader financial system. Here are some of the primary benefits:
- Improved Transparency: TCFD encourages organizations to disclose climate-related risks and opportunities, leading to greater transparency in how these factors are integrated into business strategy and operations.
- Enhanced Decision-Making: By following TCFD recommendations, companies can better understand their exposure to climate risks, allowing for more informed decision-making to mitigate those risks and capitalize on opportunities.
- Standardized Framework: TCFD offers a consistent framework for climate-related reporting, making it easier for stakeholders to compare and analyze different organizations' approaches to climate issues.
- Investor Confidence: Investors can make more informed decisions when companies disclose their climate-related financial risks and governance structures, fostering greater confidence in the financial markets.
- Risk Management: Implementing TCFD recommendations aids organizations in identifying, managing, and disclosing climate-related risks, thus enhancing overall risk management practices.
- Access to Capital: Companies that align with TCFD guidelines may have better access to capital, as more investors are looking to invest in organizations that demonstrate a commitment to sustainability and climate risk management.
- Regulatory Alignment: As governments increasingly prioritize climate action, adhering to TCFD recommendations can help organizations stay ahead of regulatory requirements and reduce compliance risks.
- Stakeholder Engagement: Transparent reporting on climate-related issues can help organizations engage with stakeholders, including customers, employees, and communities, fostering trust and enhancing reputational value.
- Resilience and Adaptation: By identifying and managing climate risks, organizations can build resilience against climate impacts, ensuring long-term sustainability and viability.
- Contribution to Global Goals: TCFD supports the wider goals of the Paris Agreement and sustainable development by encouraging organizations to address climate change as a fundamental business challenge.
Overall, the TCFD framework helps align financial markets with climate change goals, promoting sustainability and responsible investment practices.
Our consultants
Our consultants
Our results
Using independent sustainability consultants with Leafr just makes sense
.webp){kind=small}
More cost effective
Clients report significant savings compared to alternative hiring approaches
Hiring time
We will find you the best person for the role in record time
Trial to hire rate
We offer a risk-free trial period on every project. Not satisfied? Find someone else for free
Need help with your sustainability initiatives?
Find a Consultant now
Good communication, flexible schedule and delivered exactly what was agreed and on time. Would work with her again!
Tom helped us with calculating our carbon footprint outputs from 2019 to 2023. He managed everything end to end with minimal client direction. It was seamless and effortless. He's an excellent professional.
The support's been great from when we first started speaking, you wrote the brief for me and did all the sourcing. So that was fantastic. Communication has been great. The level of engagement has been brilliant.
Working with Leafr has been a pleasure from the beginning. Leafr has a wide network of talented individuals, and they have been able to seamlessly connect us with strong candidates for our various projects.
Leafr's marketplace boasts an extensive network of highly talented individuals. They have effortlessly connected us with great candidates. Leafr has become our go-to for skilled sustainability professionals.
Whenever you hire consultants you worry whether they'll be as motivated or skilled as your team. Every Leafr consultant has been so impressive. We spoke to several sustainability agencies and this has been far better value.
Our expert immediately became a seamless addition to our team. Her work showed a mastery of ESG and a strong understanding of the financial sector. We'd love the opportunity to work with her again.
Flexibility
We adapt to your needs, offering tailored solutions that evolve as your sustainability goals and challenges change.
Quality
We don’t compromise. We connect you with specialists who deliver exceptional work, ensuring every project meets the highest standards.
Value
We maximise impact while keeping costs low, ensuring you get exceptional results within your budget, with a clear focus on return on investment.
Commitment
Your mission becomes ours. We’re dedicated to supporting you from start to finish, no matter the complexity or duration.
Ownership
We take responsibility for our work, proactively managing projects and driving outcomes that align with your vision.
Flexibility
Semper id tellus hac duis vitae arcu dui elementum id in sed lectus pellentesque praesent.
Quality
Semper id tellus hac duis vitae arcu dui elementum id in sed lectus pellentesque praesent.
Value
Semper id tellus hac duis vitae arcu dui elementum id in sed lectus pellentesque praesent.
Commitment
Semper id tellus hac duis vitae arcu dui elementum id in sed lectus pellentesque praesent.
Ownership
Semper id tellus hac duis vitae arcu dui elementum id in sed lectus pellentesque praesent.
Do you need to align with a specific framework or regulation?
Need help with your sustainability initiatives?
Find a Consultant nowOur consultants have delivered for the best across industries
_6717d0a80cea7ae434e31146.webp)
_6717d0a857491b80a12814e3.webp)
_6717d0a7745c0a1a7917e4c1.webp)
_6717d0a31d79abf43d86d97a.webp)
Our vetting process
Each applicant must pass our stringent vetting process before working with clients. Only those meeting our high standards are accepted. We test for behavioural competency, technical skills, sustainability experience, and culture fit.
In-depth skill review
Each consultant submits a written application along with case studies of their work. This ensures they have the specialised technical skills to tackle your sustainability challenges.
.webp)
Live screening
We interview each candidate for behavioural and technical skills, and test against our detailed sustainability skillset matrix. We also ask for references and testimonials.
Test projects & peer review
With the help of our experts, we review past projects to verify the consultant’s ability to deliver impactful sustainability outcomes.
Need help with your sustainability initiatives?
Find a Consultant nowHow it works
Go from search to hire in as little as 48 hrs.
1. Create project
Post your job description or work with us to write one on your behalf
2. See the best profiles
No more sifting through 100s of CVs. See a shortlist of the best 3-5 consultants within hours.
3. Interview & start project
Hire your favourite candidate and start working. There is a risk-free trial period on each project.
Example roles covered
Frequently asked questions
Hiring a sustainability consultant can be a daunting process. Here we answer some of the common concerns we hear.
Will the consultant be available when I need them?
Leafr consultants are committed to your project�s success. We ensure they have the availability you need, and our support team is on hand to address any urgent requirements. Our consultants are trusted by top organisations because of their reliability and commitment.
How will you handle our sensitive or confidential information?
Confidentiality is a top priority at Leafr. All consultants sign strict non-disclosure agreements (NDAs) and are trained to handle sensitive information with the utmost care, ensuring your business data remains secure. This is part of why organisations worldwide trust our consultants.
What if the consultant pushes solutions that are too expensive to implement?
Leafr consultants focus on providing cost-effective, practical solutions. They work within your budget constraints and prioritise recommendations that offer the most value without unnecessary expenditure. We offer a risk-free period so you can evaluate their proposals without financial risk.
Will working with a consultant disrupt our current operations?
Our consultants are skilled at integrating smoothly into existing operations. They work with minimal disruption, focusing on enhancing your processes rather than interrupting them. Their experience with top organisations ensures a seamless fit into your team.
I'm worried the consultant might leave the project halfway through.
Continuity is ensured through our rigorous project management oversight. Leafr consultants are committed professionals, and we have contingency plans in place to guarantee that your project will be completed even if unforeseen circumstances arise. Our 100% project satisfaction rating is a testament to our reliability.
I'm worried about committing long-term just to see results.
Leafr offers flexible engagement options. Whether you need short-term assistance or long-term support, we tailor our services to match your desired commitment level. Our risk-free period allows you to explore these options without long-term obligations.
What happens if the consultant becomes unavailable or the project gets delayed?
We have a robust network of consultants, so if any unexpected issues arise, we can quickly provide an equally qualified replacement to keep your project on track. Leafr�s support team is always available to manage and mitigate any potential delays. We also offer a risk-free period to give you peace of mind.
Is the cost-benefit ratio of hiring a consultant really worth it?
Leafr consultants are chosen for their ability to deliver clear ROI. We ensure that the value they bring far outweighs the investment, with tailored solutions that directly impact your bottom line. Plus, our risk-free period allows you to assess the value without commitment.
Will the consultant communicate effectively with our team?
Effective communication is a cornerstone of our consultants� approach. We ensure clear, consistent communication throughout the project, fostering collaboration and alignment with your team. This commitment to communication is a key factor in our 100% project satisfaction rating.
Will my team need retraining after the consultant leaves?
Our consultants focus on knowledge transfer, equipping your team with the skills and understanding they need to sustain progress after the project concludes. This ensures that the improvements are lasting and your team remains confident moving forward.
Will the consultant stay updated with the latest sustainability trends and regulations?
Leafr consultants are experts in their fields, continuously updating their knowledge of the latest trends and regulations. We ensure they bring the most current insights to your project, supported by ongoing training and development opportunities.
I'm concerned about how to assess the consultant's performance effectively.
Leafr provides clear metrics and regular updates, allowing you to track the consultant�s progress and assess the impact of their work. We also encourage feedback to ensure expectations are met. Our 100% project satisfaction rating reflects our dedication to transparency and performance.
How soon will we see results from the consultant's work?
While sustainability initiatives often have long-term goals, our consultants focus on delivering quick wins and measurable progress early in the engagement, ensuring you see value from the outset. Our risk-free period allows you to experience these early results firsthand.
I'm worried the consultant might not fully commit if they have multiple clients.
Our consultants are dedicated to delivering results. Leafr carefully manages consultant workloads to ensure your project receives the attention and commitment it deserves. Our 100% project satisfaction rating is a testament to our consultants� focus and dedication.
What if the consultant doesn't understand my specific industry or business model?
At Leafr, we thoroughly vet our consultants to ensure they have deep expertise in various industries. We match you with specialists who have proven experience in your sector, ensuring they understand your unique challenges and goals. Our consultants have been trained and trusted by the best organisations worldwide.
Not sure where to start?
Book a free call with an expert in X of our consultants. They will help you understand your current position, build out an initial strategy and prioritise the most impactful projects to work on.
Book a Free ConsultationBrowse articles & news
Read the latest insights on how you can drive sustainability within your business
.webp)
