Task Force on Climate-related Financial Disclosures (TCFD)
Companies, decision makers and financial markets need clear, comprehensive, high-quality information on the impacts of climate change . With the adoption of the ordinance on mandatory climate disclosure, the Federal Council decided that large Swiss companies should follow the recommendations by the Task Force on Climate-related Financial Disclosures (TCFD). TCFD established a framework to adapt current business practice in terms of Governance, Strategy, Risk Management and Metrics and Targets. The initiative has quickly become the indisputable best practice standard designed to change companies’ management and reporting of risks and opportunities presented by rising temperatures, climate-related policy, and emerging technologies in our rapidly changing world.
Swiss Climate can assist you in the development and establishment of a company-specific climate disclosure that complies with the TCFD recommendations and is aligned with Swiss-specific legal requirements of the counterproposal to the Responsible Business Initiative (RBI). At Swiss Climate we can support you in the implementation of the TCFD recommendations across all thematic elements: Governance, Strategy, Risk Management and Metrics and Targets. The coverage of our consulting services include, but are not limited to, the following:
- TCFD has broad buy-in from policymakers, international companies, investors and NGOs. Globally, it is seen as the best-practice guidance to integrate effective management of climate-related issues in your company.
- The recommendations lay out a clear-cut plan that helps companies to seize cli mate-related opportunities and manage associated business risks.
- With our experience in climate consulting services at Swiss Climate we can help you become a business leader in the transition to a low carbon economy and make best use of opportunities on your climate journey.
- In Switzerland, TCFD is part of the broader legal requirement of the counterproposal to the RBI on sustainability disclosure for larger companies.
- With our consulting expertise, we can further support you in aligning your sustainability reporting with the mandatory requirements on non-financial reporting, including other environmental topics, social topics, anti-corruption, respect for human rights and employee topics.
Contact us now for a no-obligation consultation. Our consulting services include the following areas, among others:
- Analysis und Support in establishing effective Board oversight for climate related risks and opportunities (e.g. workshop and/or based on CDP)
- Review Board’s responsibilities, board committees’ role as well as the incentives to promote management of climate-related topics
- Assessment of management’s responsibility on climate issues based on the existing climate/ sustainability / ESG strategy
- Assess effectiveness of climate-related processes to evaluate and manage climate risk and opportunities (e.g. consideration in strategic decision-making, target operating model, organisational functions, (climate risk) committees)
- Support for implementation of climate-related reporting and internal policies/procedures
- Identification or refinement of climate-related risks and opportunities over the short, medium and long-term with relevant internal stakeholders
- Linking climate risks and opportunities to business model by assessing the climate related risks and opportunities’ impact on strategy and financial planning (lines of business, products, etc.)
- Development / refinement of the business transition planning in accordance to the ordinance on climate disclosure and by considering the Swiss climate goals
- Perform qualitative or quantitative scenario analysis to explore climate vulnerabilities and the resilience of the business model
- Identifying gaps in the current processes to identify, assess and monitor physical and transition risk
- Refinement of the risk framework to manage, mitigate, transfer or control for climate-related risks
- Proposal to structure roles and duties along the “three lines of defence” model for the specific industry, size and complexity of the organisation
- Consultancy on the integration of climate-related risks in the companies’ enterprise risk management (e.g. risk appetite, inventory, management tools, response, etc.)
- Implementation of an encompassing carbon footprint, especially the measurement and use of scope 3 emissions for the supply chain of the company and/or financed emissions
- Analysis and extension of company-specific metrics to measure and steering of climate-related risk and opportunities
- Definition of climate targets and reduction path for relevant topics and time horizons and alignment with current best practice and alignment with SBT or other international initiatives
- Development of holistic TCFD reporting in accordance with Swiss requirements and coordination with sustainability reporting
- Support with internal communication
- Support with external communication on own website and/or press release