TCFD

Identify and manage climate related financial risks 

The Task Force on Climate-related Financial Disclosures (TCFD) is a framework for reporting and governing climate-related financial risks and opportunities. The framework focuses on how climate change may affect a company's strategy, risk management, governance, and financial performance, and how these issues can be integrated into corporate governance in a more structured and transparent way.

Although TCFD has largely been incorporated into other regulations and standards, such as the ESRS and the IFRS Sustainability Disclosure Standards, it continues to serve as the foundation for many companies' work on climate-related risk management, scenario analysis, and sustainability reporting.

BDO helps companies identify, analyse, and structure climate-related risks and opportunities based on TCFD's four core pillars: governance, strategy, risk management, and metrics and targets. In many engagements, we work to connect climate-related risks to a company's business model, value chain, and financial impact, creating a relevant basis for decision-making in both reporting and strategic work.

This work often includes climate risk and opportunity analyses, scenario analyses, and assessments of how different climate-related risks and transition scenarios may affect areas such as investments, assets, the supply chain, cost structure, and long-term business development. We also help companies build structures for governance, monitoring, and the integration of climate-related issues into existing risk management and corporate governance processes. We tailor our approach to the organisation's needs and level of maturity and can support everything from high-level strategic guidance to more detailed analyses and reporting documentation.

Common considerations in working with TCFD

• Scenario analysis and future uncertainty 
  Many organisations find it challenging to conduct scenario analyses and assess long-term climate-related risks and opportunities. BDO helps companies develop scenario analyses and risk and opportunity assessments that are relevant to the organisation's geographic exposure, business model, and strategic circumstances.
• Integration into risk management and governance 
  Integrating climate-related risks into existing risk management and corporate governance processes often requires new ways of working and cross-functional collaboration. We work to connect climate-related issues to existing governance and decision-making processes, creating a more integrated and long-term approach to sustainability work.
• Data access and analysis 
  Access to relevant climate data and financial information often varies between organisations and geographic regions. BDO helps companies develop data collection, methodology, and analysis to create a more robust foundation for risk and opportunity assessments, scenario analyses, and reporting.