TCFD Recommendations

Describe the board's oversight of climate-related risks and opportunities, including the processes and frequency by which the board is informed, how climate considerations factor into board decisions, and how the board monitors progress against goals.

• Board charter with climate mandate
• Board and committee meeting minutes referencing climate items
• Annual board climate briefing decks
• Director climate competency matrix
• Board calendar showing climate review cadence

• No documented frequency of board climate reviews
• Climate items buried in general ESG updates
• No evidence of board challenge or decisions taken
• Director skills matrix omits climate competency

Describe management's role in assessing and managing climate-related risks and opportunities, including assigned positions or committees, reporting lines to the board, and the processes used by management to stay informed.

• Org chart with climate roles highlighted
• Climate steering committee terms of reference
• Job descriptions for Chief Sustainability Officer or equivalent
• Management reporting templates submitted to board
• RACI matrix for climate risk decisions

• No single accountable executive owner
• Climate committee meets but produces no minutes
• Reporting lines to board unclear or informal
• No KPIs tied to executive remuneration

Per TCFD Recommendations Governance pillar: Board Oversight + Management's Role in assessing + managing climate-related risks and opportunities. Disclose: board oversight; management's role.

• TCFD evidence for TCFDREC-1

• scenario analysis + Scope 3 + targets partial

Determine the location of TCFD-aligned disclosures within annual financial filings, sustainability reports, or standalone climate reports, and the frequency of update, ensuring information meets the principles of effective disclosure.

• Most recent annual report with TCFD index
• Climate report or sustainability report
• TCFD content index mapping to recommendations
• Disclosure controls memo
• Audit committee approval record

• Disclosures scattered across multiple reports without index
• No annual update cycle defined
• Forward looking statements without caveats
• Inconsistency between financial statements and sustainability report

Assess the transition from standalone TCFD reporting to IFRS S2 Climate-related Disclosures, including jurisdictional adoption status, mapping of existing TCFD content, and any gap closure activities.

• TCFD to IFRS S2 mapping document
• Gap analysis against IFRS S2
• Jurisdictional adoption tracker
• Project plan for S2 readiness
• Disclosure committee charter referencing ISSB

• No mapping performed
• Assumption that TCFD coverage is sufficient
• Local jurisdiction requirements ignored
• Connectivity with financial statements weak

Establish internal capability and data infrastructure to perform recurring climate scenario analysis, including selection of scenarios, parameter calibration, modelling tools, and analyst training.

• Scenario analysis methodology document
• Data inventory for physical and transition risk inputs
• Tool selection memo or vendor contracts
• Training records for climate analysts
• Validation and challenge logs

• Reliance on a single external vendor with limited transparency
• No internal challenge function
• Data refresh cadence undefined
• Limited geographic granularity

Ensure climate-related disclosures are connected to amounts recognised, measured, and presented in the financial statements, including impairment assessments, useful life of assets, decommissioning provisions, and contingent liabilities.

• Climate considerations in impairment workpapers
• Decommissioning provision schedules with climate inputs
• Auditor communications on climate assumptions
• Disclosure of significant judgements
• Note disclosures referencing climate

• Climate assumptions inconsistent between sustainability report and financial statements
• Impairment models do not stress climate
• Useful life of high-carbon assets not reassessed
• No disclosure of significant judgements

Implement internal controls over the preparation, review, and approval of climate-related disclosures with the same rigour applied to financial reporting controls, including data lineage, version control, and review evidence.

• Disclosure control matrix for climate items
• Data lineage diagrams from source to disclosure
• Version controlled workpapers
• Sign off log for disclosures
• Internal audit reports on climate data controls

• Spreadsheets without version control
• No formal sign off prior to publication
• Source systems not identified
• Internal audit coverage absent

Per TCFD Metrics and Targets pillar: metrics used to assess climate risks and opportunities + Scope 1 + Scope 2 + Scope 3 GHG emissions + targets for managing climate risks and performance against targets.

• TCFD evidence for TCFDREC-4

• scenario analysis + Scope 3 + targets partial

Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process, including metrics on water, energy, land use, waste, and internal carbon pricing where applicable.

• Metrics dashboard with definitions and methodologies
• Internal carbon price policy and rate
• Water and energy intensity reports
• Climate-related revenue and capex tagging
• Remuneration linkage to climate metrics

• Only GHG emissions reported, no other metrics
• Internal carbon price not set or only nominal
• Metrics inconsistent year over year
• Methodology footnotes missing

Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas emissions and the related risks, with disclosure consistent with the GHG Protocol Corporate Accounting and Reporting Standard.

• GHG inventory report by scope
• Calculation workbooks with emission factors and sources
• Organisational and operational boundary documentation
• Third party limited or reasonable assurance statement
• Scope 3 category screening and inclusion rationale

• Scope 3 omitted or only one or two categories disclosed
• Boundary definitions inconsistent year over year
• No assurance obtained
• Emission factor sources undocumented

Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets, including a description of target type, scope, base year, time frame, interim milestones, and use of offsets.

• Net zero or emissions reduction target statement
• SBTi validation letter or equivalent
• Target progress dashboard with milestones
• Offset policy and inventory of credits used
• Annual progress report

• No interim milestones between base year and target year
• Heavy reliance on offsets without abatement first
• Target methodology unclear
• Performance not tracked or restated when boundaries change

Describe the organisation's processes for identifying and assessing climate-related risks, including how relative significance is determined, how existing and emerging regulatory requirements are considered, and the definitions of risk terminology used.

• Climate risk identification methodology
• Risk taxonomy and definitions document
• Regulatory horizon scan logs
• Risk assessment workpapers
• Materiality threshold criteria

• Methodology not formally documented
• Inconsistent risk definitions across business units
• Regulatory scanning ad hoc rather than systematic
• Materiality thresholds undefined

Describe the organisation's processes for managing climate-related risks, including decisions to mitigate, transfer, accept, or control those risks, and processes for prioritisation including how materiality determinations are made.

• Risk treatment plans for top climate risks
• Insurance and hedging documentation
• Mitigation project portfolio
• Risk acceptance memos signed by accountable executives
• Prioritisation scoring rubric

• Risks identified but no treatment plans
• Prioritisation logic undocumented
• Insurance coverage for physical risks not analysed
• No tracking of mitigation project outcomes

Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organisation's overall risk management framework, including the linkage between climate risk and enterprise risk taxonomy.

• Enterprise risk management framework with climate references
• Climate risks in enterprise risk register
• ERM committee minutes discussing climate
• Risk appetite statement covering climate
• Integration diagram showing climate flow into ERM

• Climate risk register kept separate from ERM
• Risk appetite silent on climate
• No common scoring scale across climate and other risks
• ERM committee never sees climate items

Per TCFD Risk Management pillar: processes for identifying + assessing + managing climate-related risks + integration into overall risk management.

• TCFD evidence for TCFDREC-3

• scenario analysis + Scope 3 + targets partial

Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long term, including the specific time horizons used and how these align with planning cycles and asset lifetimes.

• Climate risk register with horizon tags
• Definition of short, medium, long term horizons document
• Materiality assessment workpaper
• Sector and geography heatmaps
• Opportunities pipeline tracker

• Time horizons defined inconsistently across business units
• Only physical or only transition risks considered
• Opportunities omitted entirely
• No linkage to capital allocation cycles

Describe the impact of climate-related risks and opportunities on the organisation's businesses, strategy, and financial planning, covering products and services, supply chain, adaptation and mitigation activities, R&D investment, and operations.

• Climate-adjusted financial forecasts
• Capex and opex tagging for climate investments
• Strategic plan extracts referencing climate
• Supply chain climate exposure analysis
• Product portfolio decarbonisation roadmap

• Qualitative narrative only, no quantified impacts
• Climate not integrated into annual budget process
• Supply chain Scope 3 hotspots not analysed
• R&D spend on low-carbon solutions not tracked

Describe the resilience of the organisation's strategy, taking into consideration different climate-related scenarios, including a 2 degrees Celsius or lower scenario, and scenarios consistent with national or regional emissions pathways where relevant.

• Scenario analysis report covering 1.5C, 2C, and higher warming pathways
• Scenario assumptions and parameter documentation
• Stress test results by business line and geography
• Transition plan document
• Sensitivity analysis tables

• Only one scenario tested
• Scenarios pulled off the shelf without organisation-specific calibration
• Results not used in strategy decisions
• No transition plan published

Per TCFD Strategy pillar: climate-related risks + opportunities over short/medium/long horizon + impact on business + strategy + financial planning + resilience under different climate scenarios (including 2C or lower scenario).

• TCFD evidence for TCFDREC-2

• scenario analysis + Scope 3 + targets partial