CMS have published new guidance on the ‘Task Force on Climate-related Financial Disclosures’ (‘TCFD’) Climate reporting requirements. The recommendations aim to help organisations disclose clear, comparable, and consistent climate-related financial information.
The use of the TCFD requirements are supported by organisations worldwide and more recently have been implemented in the UK, especially with the reporting regime of larger listed companies that are now expected by the Financial Conduct Authority (‘FCA’). The recommendations derive from the growing need for comparable climate-related disclosures and increasing regulation in this area.
The TCFD’s 11 disclosure recommendations cover four themes:
- governance (how companies are governing climate-related risks and opportunities);
- strategy (the actual and potential impacts climate change can make on business, strategy, and financial planning);
- risk management (identifying the process an organisation uses to identify, assess, and manage climate-related risks); and
- metrics and targets (assessment and management of climate-related risks and opportunities).
This CMS article, which is part of a Healthy Horizons guide to doing business responsibly in Life Sciences & Healthcare, outlines how the recommendations are particularly important to Life Sciences & Healthcare organisations, due to the sectors inherent focus on social and environmental issues.
To read the full summary click on the link.