Climate-related financial
disclosures (CFD or TCFD)
Global alignment with the Task Force on Climate-Related Financial Disclosures (TCFD).
Climate-related disclosures ensure that the appropriate information on climate-related risks and opportunities is available across the investment chain – from companies in the real economy to financial services firms, to end investors.
Inspired offer a comprehensive Task Force on Climate-Related Financial Disclosure (TCFD) service that covers all climate-related financial reporting needs. This includes a compliance disclosure for the annual report for companies in scope, a standalone TCFD report, and an index to help rating agencies search the disclosure.
Inspired’s approach
Companies must disclose how climate-related assumptions impact the financial statements, including understanding the extent to which accounting assumptions and estimates are 2050 net-zero aligned.
Inspired’s approach aims to build climate-related knowledge from a data-driven perspective, assessing corporate operations against the TCFD disclosure recommendations and guidance.
The TCFD disclosure service is an aggregation of several workstreams each with specific deliverables that build internal capability and streamline reporting processes:
- Climate-related governance;
- Climate scenario modelling and risk management framework;
- Climate risk and opportunity workshop;
- Carbon Balance Sheet;
- Net-zero emissions modelling; and,
- Net-zero workshop.
Working in partnership with clients, Inspired help organisations to develop the necessary processes to address climate-related issues in their operations and make effective disclosures.
Key deliverables
Inspired’s TCFD service typically takes up to nine months from kick-off to delivery.
The start of the project comprises data collection, capacity building, and climate-risk modelling, while the latter months involve the delivery of the internal reports and disclosure drafting; aligned with the company’s annual reporting schedule.
Several internal workstream reports that feed into the TCFD disclosure
Annual report
disclosure
Fully branded TCFD report
and Index
Talk to an expert
Dr. Michelle de Jongh
Managing Director: Inspired ESG
“We support clients across multiple sectors in the UK with their TCFD-aligned disclosures. Our workstreams are designed to help our clients develop internal capability to streamline the process and reduce the reporting burden. Please contact us for support.”
Related ESG services
Streamlined Energy and Carbon Reporting (SECR) – Scope 1 and 2 emissions
Scope 1 and 2 emissions are recommended to be included under the TCFD’s ‘Metrics and Targets’ section. As part of Inspired’s Climate-Related Financial Disclosure offering, a Scope 1 and 2 emissions inventory is calculated.
Policy Procurement Note 06/21 (Carbon Reduction Plan)
A PPN06/21 Carbon Reduction Plan requires businesses to disclose baseline and recent GHG emissions – including five Scope 3 categories – targets and decarbonisation actions. The five categories required to be disclosed will be calculated, if applicable, as part of Inspired’s Scope 3 emissions inventory service.
Science-Based Target initiative validation support
The Science-Based Target initiative (SBTi) is the internationally recognised body for validating emission reduction targets. Companies going through the SBTi validation process need to provide a full Scope 3 inventory, calculated as per the GHG Protocol guidelines.
Scope 3 emissions inventory
Scope 3 emissions are recommended to be included under emissions environmental reporting to help stakeholders understand a company’s value chain emissions and what steps are they taking to reduce their impact.
Greenhouse gas emissions verification – ISO 14064
The ISO 14064 standard is a process to verify a company’s greenhouse gas emissions footprint and covers operational as well as value chain emissions. Inspired’s ESG Quality Assurance team can verify the Scope 3 inventory to provide additional assurance of the calculations and output.
Net-Zero Strategy
Net-zero should be achieved by reducing Scope 1, 2, and 3 emissions as far as possible; a Net-Zero Strategy plans for how these reductions will be achieved. During the validation process, the SBTi requests details about how a business plans to reduce its GHG emissions and achieve any submitted targets. Inspired’s Net-Zero Strategy service produces a decarbonisation action plan that is specifically mapped to near-term and net-zero targets.
“Inspired’s expertise has been invaluable in supporting our annual TCFD reporting. Their team possesses a deep understanding of the TCFD framework and its nuances, ensuring our disclosures are comprehensive, transparent, and aligned with best practices. Inspired fosters a collaborative and supportive environment. They take the time to understand our unique business model and priorities, ensuring the final report and strategies truly reflect our company’s voice and vision.”
James Streeter, Head of ESG at Tandem Bank
Quick links
At Inspired, we’ve been putting a lot of effort into helping businesses to understand ESG and its associated benefits. But, our support doesn’t end there.
Science-Based Target initiative validation support
Greenhouse gas emissions verification – ISO 14064
Get in touch
Contact an ESG specialist today to discuss your TCFD reporting options in more detail.