Climate-related disclosures are becoming an essential and expected element of corporate disclosures, and all signs point to these disclosures becoming mandatory in the next few years.
In 2017, the Task Force on Climate-related Financial Disclosures (TCFD) published recommendations for climate-related financial disclosures as a measure to safeguard the financial system from climate change shocks.
It has gained the support of more than 2,300 organizations, including financial institutions, and private and public companies and the energy sector. Almost 60 per cent of the world’s 100 largest public companies support the TCFD, report in line with the TCFD recommendations, or both.
Join Rosa Rivero, principal at Responsibility Matters, in a new course, Task Force on Climate-related Financial Disclosures (TCFD) Primer for oil and gas, where she will explain how oil and gas companies can get started on adopting the recommendations.
Rivero said it is advantageous for companies to start implementing the framework as soon as they can.
“Because of the support from financial institutions – not just from financial markets, but from lenders and insurers - many companies are having to do something about it,” she said. “Whether they're small or big, public or private, TCFD is something companies cannot ignore.”
“Typically, it is a multi-year process,” said Rivero. “You can start small and add elements as you mature so it's not an all or nothing exercise”.
Deciphering the TCFD framework can be challenging. The framework is relatively new, so some elements are not yet clearly defined, requiring interpretation and knowledge of how they can be applied, said Rivero.
“Even though climate is in the title, the framework is equally about climate and the energy transition,” she said. “Even if your company operates in areas with no extreme weather events, the energy transition is relevant to all oil and gas companies.”
The course will cover TCFD’s four key disclosure recommendations– strategy, governance, risk management, metrics and targets –and showcase best practices, examples from oil and gas companies and more.
“This course will summarize what oil and gas companies need to know, and focus on how to apply the recommendations using real examples,” said Rivero.
Because the course is foundational, no prior knowledge is required. The course is intended for anyone who prepares, contributes to, or oversees corporate disclosures including ESG or annual reports. Board members and executives would also find the course valuable.
To register for Task Force on Climate-related Financial Disclosures primer or to learn more about how this course can benefit your company click here.