Levelling up climate risk reporting: our TCFD Reporting Comparison Tool

From April 2022, premium listed companies in the UK are required, by law, to disclose how they are managing climate-related threats and opportunities in their annual risk report. Our TCFD Reporting Comparison Tool empowers members to benchmark against listed companies’ approaches to climate risk disclosures, saving them time and strengthening their own methods for this kind of reporting.

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New TFCD reporting requirements in the UK and beyond

While the UK is the first nation in the world to require listed companies to disclose climate-related financial information in line with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD), it will likely not be the last.

Other governments around the world are making waves to introduce similar requirements in the future.

Risk leaders at the affected UK companies therefore have imminent new reporting requirements to meet; while others will want to get ahead of the curve with their own climate-related risks and opportunities’ reporting.

What is the TCFD Reporting Comparison Tool?

To support risk managers get ahead with new requirements, we have built the TCFD Reporting Comparison Tool, an interactive database of TCFD reporting in company annual reports. The tool helps risk managers compare how different companies and sectors are approaching the challenge of reporting climate-related financial disclosures.

How to create standout risk reports that demonstrate the real value of Risk

Read our feature article on internal and external risk reporting

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What data's included?

Publicly available TCFD reports from 130+ companies, broken down by:

• Risks and Opportunities - Separated into “transition” and “physical” risks, this function enables members to see what risks and opportunities an individual company and/or sector is reporting as part of their TCFD disclosure.
• Scenarios - Organisations, such as the Intergovernmental Panel on Climate Change (IPCC), as well as individual companies, have developed climate change scenarios which are being reported against in line with TCFD requirements. Members can see which scenarios companies are using in their reporting and where they’ve been sourced from.
• Targets and Metrics - This part of the tool focuses on the goals set by different companies as part of their TCFD disclosure, and the metrics they are using to determine whether these goals have been reached.

The tool has been created through consultation with risk leaders in our network and aligns with the TCFD requirements' structure.

How are risk leaders benefiting from using this tool?

Having an awareness of the climate-related risks other companies are focusing on, how these companies are responding to potential futures and what they are doing to make a successful green transition can empower risk leaders to bring their own organisations in line with the market.

Members have praised the tool, highlighting the time-saving and benchmarking benefits it bring them. 

The TCFD Reporting Comparison Tool is available exclusively for Risk Leadership Network members, and is just one of the many ways we support risk leaders with their risk priorities.

Request a demo with our product specialist and explore the direct benefits of having access to the TCFD Comparison Tool, as well as the wider time/efficiency savings that membership will deliver.

Data highlights from the tool

Looking at all the FTSE 100 companies currently reporting on TCFD:

• The average number of risks mentioned per report is 7.
• 92% of reports actually include mention of specific risks.
• Only 35% apply a timeframe (e.g. short-, medium- or long-term) to risks

Integrating climate risk into an existing ERM framework

A risk leader details their approach in a recent case study

Download Case Study

The future of TCFD reporting

Given that the UK requirements came into force in 2022, TCFD reporting is still in its early stages and there isn’t much consistency yet in how companies cover this in their annual report. Members are leveraging the tool to help shape their own TCFD reporting approach against the current backdrop of uncertainty and lack of clear guidance over how exactly they should make these disclosures.

Over time, we can expect approaches to this task to become a lot more unified as more companies report on TCFD.

As organisations’ disclosures become more consistent, we will draw out additional data points that can then be fed into the tool. As new annual reports are published, we’ll also be updating it with the latest information and evolving the tool based on member feedback and requests. We'll also continue to facilitate practical knowledge sharing between members on TCFD reporting through member meetings, interviews, bespoke assistance, benchmarks, case studies, templates and more. Let us know if TCFD reporting is one of your priorities, and we'll invite you to the next relevant meeting (subject to qualification).

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Get access to the TCFD Reporting Comparison Tool

Created for and with regular consultation from risk leaders in our network, this tool is exclusively for our members.

Request a demo with our product specialist and discuss the specific benefits this tool and wider membership will have for your organisation.