The recommendations from the Task Force on Climate-related Financial Disclosures (TCFD) have the potential to be more than a risk and reporting framework. On Tuesday 24 May 2022, Finch & Beak hosted a webinar focused on TCFD, where guest speakers Steven Hather, Chief Risk Officer at Coca-Cola Hellenic Bottling Company, and Sam Gill, Principal Climate Change Consultant at SLR Consulting shared more on how to activate an organization's TCFD approach. This article shares highlights of the session, valuable insights into TCFD integration, engagement, and disclosure, and includes a downloadable checklist with three TCFD activation tips.
Making TCFD work
Developed as a response to a growing demand for disclosures on the impact of climate change on organizations, the TCFD’s recommendations are a set of well-balanced disclosure guidelines that are changing the way organizations manage climate-related risks and opportunities.
The common theme that emerged from input received from the webinar audience was that a majority of organizations are asking the question: ‘how and where do we start with TCFD?’. Naturally, the session aimed to answer this question and others by providing a brief introduction to TCFD, sharing how to make it work in practice, a practical example of the climate risk & opportunity scenario analysis process, and best practice tips.
Beyond risks & reporting – TCFD as an alignment tool
Sam Gill, Principal Climate Change Consultant and Lead of the Global Climate Risk & Resilience team at SLR Consulting
, laid the TCFD foundation by providing an overview of the recommendations, the process and what a practical project approach would look like and elaborated on why TCFD is now the global standard for climate risk management and reporting. As a key component of TCFD, he elaborated on the climate risk analysis process, shared about climate scenario analysis, and shared real-life case examples.
Including all the relevant people in the organization, in the TCFD process is something not to overlook. An engagement strategy with a series of engaging touchpoints is a particularly helpful tool to ensure buy-in from different levels of the organization and that involved parties are aware of and up-to-date on what the path entails and what the journey looks like.
Lessons on using TCFD to better understand climate risks and opportunities
Steven Hather is Chief Risk Officer with Coca-Cola Hellenic Bottling Company
(HBC) and has over 30 years’ experience in risk and crisis management areas. Steve shared the story of how Coca-Cola HBC used TCFD in identifying physical risks and transition risks associated with climate change.
As one of the Coca-Cola system’s largest bottlers, present in 29 countries, Coca-Cola HBC applies a system approach to enable the company to leverage what others are doing. With water being fundamental to the business and a logical place to start, Steve shared a practical example of doing a deep dive quantitative water assessment to identify key risks and opportunities. Furthermore, TCFD risk analyses enabled the company to identify key focus areas for 2022.
How to accelerate ESG using TCFD
Finch & Beak’s Nikkie Vinke wrapped up the session by emphasizing valuable insights from the discussion, and suggesting three helpful tips to consider when activating your TCFD approach. You can find the tips in the downloadable document at the top of the page.
Finch & Beak provides TCFD and climate strategy support
At Finch & Beak, our vision is to accelerate sustainability and with regards to TCFD we offer support in the form of:
- TCFD Readiness Assessments
- Scenario Analyses
- Full TCFD Support
If your organization requires support on its TCFD journey, reach out to Gijs-Jan Groeneveld, at Gijs-Jan@finchandbeak.com or call +31 6 28 02 18 80 to discuss how Finch & Beak can help you.
Photo by Kelly Sikema on Unsplash