In 2017, the Task Force on Climate-related Financial Disclosures (TCFD) introduced a framework to help organizations report their climate-related financial information and assess climate risks and opportunities.
Today, the TCFD is one of the most commonly used disclosure frameworks across the globe, with countries such as the UK and New Zealand among the first to require TCFD-aligned climate reporting. In fact, the TCFD is now set to move into the administration of the International Sustainability Standards Board (ISSB), a merger that is expected to bring further cohesion among the plethora of sustainability standards and frameworks available for asset managers. Thankfully in the past six years, financial institutions have recognized that climate risks are intertwined with financial risks, motivating them to drive emissions down.
The framework itself consists of 11 disclosure recommendations spanning four interrelated thematic areas: governance, strategy, risk management, and metrics and targets. Apart from the last area, these recommendations are largely qualitative in nature and can be summarized as follows:
Reporting GHG Emissions: A Novel Requirement
Measuring and disclosing financed emissions (i.e., GHG emissions associated with loans and investments) as part of climate disclosures is a new deliverable for many organizations/ financial institutions and, as such, will require new routines, organizational structures, and processes for gathering data.
All this takes time and resources – the learning curve is steep and for some companies these changes need to be implemented in time for the 2024 reporting year. A lot of the times, organizations estimate their climate figures by buying data from providers such as MSCI, S&P, & Sustainalytics to fulfil their climate disclosure requirements – unfortunately, financial institutions cannot do this for their private markets portfolios. This is primarily because their investing and lending data needs to be collected first-hand from the portfolio, which can only be done with the help of customized tools, automations, and individuals with industry expertise. For these reasons, financial institutions, on the private markets side, end up seeking the expertise of external consultants and Software solutions that can ease the reporting burden by seamlessly collecting climate data that tracks the full extent of their carbon footprint.
– Streamline collection of large sets of climate data
– Calculate emissions with easily available activity data
– Generate automated TCFD Assessments
ESGTree is purpose-built for financial institutions and private equity firms. We offer a full suite of features for your TCFD reporting needs:
ESGTree’s TCFD Tool Features
Automatic TCFD report generation
Upon completing 40 multiple-choice questions, our platform automatically generates your TCFD report – automate the difficult legwork and eliminate the need for external consultants.
Climate Strategy Expertise
We leverage advanced analytics and automate major ESG and climate disclosure frameworks to deliver timely, independent, and decision-useful insights.
Quality & Clear Climate Maturity Assessment
We assess an organization’s climate maturity, considering both the clarity (breadth of coverage) and quality (depth of actions) of its climate performance against TCFD recommendations. Our platform provides recommendations and action items to improve climate performance vis-a-vis the four pillars of the TCFD framework.
Data-Driven Market Intelligence
Benchmark your climate progress against a data set of 10,000+ companies.
Proprietary Carbon Calculator & Portfolio Company Scorecards
Our Carbon Calculator allows for seamless calculation of carbon emissions by taking in data that companies readily have on hand to provide figures for Scope 1, 2, and 3 emissions on the spot.
Trends, Analysis and Visualizations
We offer trends analysis and visualizations by ESG framework, indicator and reporting period.
Add-on Advisory Services for ESG policy creation, strategy road-mapping, training, and reporting
Our Client Success Team is comprised of experts in Climate, ESG and impact investing who advise our clients on strategy and provide support on every step of the ESG journey.
Free client success support from ESGTree experts
Given the international buy-in and legislative action around TCFD, we strongly advise adding the TCFD framework to your climate action plan. By acting now, you can stay ahead of the regulatory curve and minimize transition risk as the world moves towards a lower carbon economy.
With ESGTree, save the time and cost of ESG reporting by harnessing the power of the cloud and streamlining ESG data collection, analysis and disclosure.
For more information on the TCFD Reporting Solution, please contact us at :
ESGTree helps private capital investors automate ESG data collection and analysis for their portfolio companies. Our platform features include our carbon calculator, customizable and automated ESG frameworks, multi-level report viewing, trends analysis dashboard, and other features aimed to make ESG work for everyone.
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