- Climate-related disclosures are an area of focus for the 30 June reporting period
- Many existing climate-related disclosures only partially meet the TCFD recommendations.
- There are a number of new guides and resources available to help organisations adopt the TCFD recommendations.
In ASIC’s media release covering their areas of focus for 30 June 2018, ASIC have specifically referred to climate change as a matter that may have a material impact on the future financial position or performance of the entity. They also advise Directors to
‘consider whether it would be worthwhile to disclose additional information that would be relevant under integrated reporting, sustainability reporting or the recommendations of the Task Force on Climate-related Financial Disclosures where that information is not already required for the Operating and Financial Review.’
EY’s recent paper Climate Risk Disclosure Barometer 2018 provides a snapshot on the uptake of the Task Force on Climate-related Financial Disclosures (TCFD) Recommendations across highly impacted sectors in Australia. The paper found that the quality of disclosures compared to the level of detail specified by the TCFD Recommendations was low across all sectors. The average quality score was 25%, indicating that current disclosures only partially meet the requirements of the TCFD.
A number of guides and resources have been developed globally to help organisations improve the quality of their disclosures of the TCFD recommendations. In April, Chartered Accountants Australia and New Zealand, co-hosted a TCFD workshop with the G100, Accounting for Sustainability (A4S) and CPA Australia in Sydney.
The findings from this workshop along with others held in London, Singapore and Toronto have been included in a booklet 'TCFD Implementation: Top Tips for Finance Teams'. The practical approaches and suggestions are based on the experiences of early adopters to help discussions within organisations on adopting the TCFD recommendations. Also included are some resource suggestions and links to organisations that have started to disclose in line with the recommendations within their 2017 annual report.
The Climate Disclosure Standards Board, in collaboration with the TCFD, have launched the first online platform to provide useful information on quality climate-related disclosures in line with the recommendations of the Task Force. At the time of its launch, the Knowledge Hub houses over 350 resources, including existing legislation and regulations, frameworks, standards, guidance, research papers, tools and webinars. The platform is being updated on an ongoing basis with company case studies showcasing the first preparers piloting the TCFD recommendations, as well as upcoming events and additional videos.
You can also watch the recording of our webinar hosted by the Climate Disclosure Standards Board which includes presentations from global experts exploring the significance of climate related risks to business and provides an overview of why climate related financial disclosures are becoming more mainstream. It also explores the possible implications for the accounting profession.
Climate risks and new recommendations webinar for accountants
TCFD Implementation: Top Tips for Finance Teams
Practical approaches tried and tested by early adopters of the TCFD recommendationsRead the booklet
TCFD knowledge hub
Find the resources you need to understand and implement the TCFD recommendations.Read more