Task Force on Climate-related Financial Disclosures

The Task Force on Climate-related Financial Disclosures (TCFD) is an advisory body set up by the G20 to address concerns around insufficient disclosure of climate-related risks and opportunities for businesses. The Task Force is made up of 32 members, including PwC Partner Jon Williams, drawn from a range of industries and countries, with key perspectives as reporters of information or users of such information. The Task Force published its final recommendations in June 2017, which are intended to apply to all companies with listed debt or equity in the G20, and additionally to asset managers and asset owners (recognising that these organisations are typically unlisted).

"The right information allows sceptics and evangelists alike to back their convictions with their capital."

- Mark Carney, Chair of Financial Stability Board and Governor of the Bank of England

The first publication of TCFD recommendations in June 2017 provided context, background, and the general framework for climate-related financial disclosures.

Key Features of TCFD:

• Adoptable by all organisations
• Included in Financial Filings
• Designed to solicit decision-useful, forward-looking information on financial impacts
• Focused strongly on risks and opportunities related to transition to lower-carbon economy

TCFD shifts the landscape on disclosure in three crucial ways:

1. Away from the traditional backward looking sustainability-focused lens and towards a forward looking financially-focused view

2. Broadening the perspective from a company’s impact on climate change to climate change’s impacts to the company through physical and transition risks

3.  Moving climate-related disclosures into mainstream reporting and away from standalone sustainability reports, thereby elevating such disclosures to require the same rigorous governance processes as financial reporting

We have worked with many clients to help them understand how climate change impacts their business through the use of scenario analysis. We’ve helped them understand how they could be financially impacted by physical and transitional risks and develop a strategic management response.

PwC UK Partner Jon Williams is a member of the TCFD and our firm has invested resources to support its work. The team has been working closely with the TCFD throughout the development of the framework and recommendations, as well as with running the public consultation and monitoring of TCFD adoption rates. Our PwC Luxembourg TCFD team is working in collaboration with the UK team to meet the needs of the clients, be it in terms of disclosures, gap analysis and scenario analysis.

PwC has in-depth expertise in climate change and sustainability, governance and strategy, risk and change management, technology, reporting and assurance. We believe that managing climate change as an issue should be integrated into existing governance structures, strategic approaches and risk frameworks. We will leverage the best combination of climate knowledge and skills alongside our traditional strengths to deliver for our clients.