This paper marks the first anniversary of the launch of the Task Force on Climate-related Financial Disclosures (TCFD), and assesses the ongoing challenges of weaving climate disclosures into corporate DNA and financial reporting. While there is accelerating support for the TCFD recommendation from policy makers, investor groups, NGOs, and companies, there are significant gaps between the focus of current climate reporting by most companies and the information that must be synthesized to meet the TCFD recommendations.
Top three challenges for companies in adopting TCFD recommendations:
- Ensuring leadership support for enhanced disclosure
- Revising risk assessment processes
- Applying scenario analysis to climate change