What is TCFD?
Michelle Winters, Goby's VP of Solutions, explains that the Task Force on Climate-related Financial Disclosures (TCFD) is an organization that's developed a set of standards on communicating climate-related financial risk.
Hi everyone, Michelle here, and I'm going to be answering the question of the day, which is, “what is TCFD?”
So, it's a mouthful. TCFD stands for Task Force on Climate-related Financial Disclosure. And yes, the acronym does not fully match.
It's basically an organization that has developed a set of standards on how to communicate or disclose climate related financial risk to investors, lenders, insurers, and other stakeholders.
So in a world where there's so many different frameworks that you can report data on, TCFD is trying to develop this framework that can be consistent across different industries.
They ultimately came up with a final result of putting these recommendations into four key categories. So that's governance, strategy, risk management, and metrics are targets.
So how you're actually tracking this data. And it's pretty detailed, but I absolutely suggest looking into it further.
At the end of the day, their goal is to really do two things.
The first is to promote more informed investment decisions.
And second, to enable stakeholders to understand the financial systems exposure, based on current climate related risks.
So thanks for joining me today and happy to talk more about it.