Preparing for TCFD Reporting - Practical Recommendations
This report was established in collaboration with our partner EY for the CCR roundtable on "Climate Reporting – the new normal – benefits and challenges", sponsored by EY, held in May 2024.
It covers the following core areas, focusing on practical insights that help implementing and further developing companies’ climate related disclosures:
Understanding the main difference between TCFD as a principle-based approach and IFRS S1 and S2, a more prescriptive approach
High alignment overall of TCFD recommendations and IFRS S1 and S2; areas of IFRS S1 and S2 going beyond TCFD are
Disclosure of industry-based metrics
Mandatory Scope 3 emissions disclosure
Swiss companies will be required to produce and publish as of 1st January 2024 a report in alignment with the TCFD recommendations; additional requirements are
Disclosure of a transition plan aligned with Swiss climate targets
The consideration of a double materiality perspective
Publication of information in a machine-readable format, XBRL tagging, enabling automated data exchange and analysis
Key challenges to overcome when implementing TCFD recommendations are typically related to:
Data and systems
Climate scenario analysis
Capability building
Governance
Setting the level of ambitions in climate-related disclosure is one of the very first steps companies need to take. Understanding pros and cons of a pure compliance approach vs a more strategic implementation of TCFD may help develop a fit-for-purpose roadmap for implementation
Implementation of climate related disclosures based on TCFD structure
Recommendations
Best practice examples for your TCFD journey
Summary of requirements and timeline based on a step-by-step approach
Authors
Miriel Steudler
Director, Climate Change and Sustainability Services, EY
miriel.steudler@ch.ey.com
Dr. Mark Veser
Head Climate Change & Sustainability Services, EY
mark.veser@ch.ey.com
Barbara Zäch
Co-CEO, Center for Corporate Reporting
barbara.zaech@corporate-reporting.com
Research Partner
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