Using your CDP disclosures to respond to TCFD

May 2020

Using your CDP disclosures to respond to TCFD

Companies can currently disclose climate change matters and elements of environmental information through the CDP Platform which provides the structure for data collection and the content for reporting. CDSB provides guidance to help companies communicate that content in mainstream reports to their wider investor and stakeholder base, while providing regulators with a comprehensive set of information.

The Financial Stability Board’s Task Force on Climate-related Financial Disclosure (TCFD) is an organisation that was asked to develop voluntary, consistent, climate-related financial disclosures that would be useful to investors, lenders and insurance underwriters in understanding material risks. Whilst there is growing interest in TCFD, and multiple reporting platforms have been adapted to incorporate the eleven recommendations proposed by the TCFD, there is still confusion in the market regarding where companies can get TCFD data from and how to properly report it, according to an article prepared by CDSB which can be found here. CDP and CDSB have therefore teamed up to produce a report which outlines the building blocks for effective TCFD-aligned disclosure using CDP and the CDSB Framework.

Whilst CDP reporting is likely to include a lot of the recommended reporting of the TCFD, it is essential that the eleven recommendations suggested by the TCFD are reported in mainstream reports. These guidelines will help companies to translate CDP disclosures to meet the expectations of the mainstream report.

A move to mandatory TCFD reporting is becoming increasingly more likely as investor pressure and stakeholder interest in climate-related financial impacts grows. In our view this guide is therefore a useful addition to a suite of materials already available on TCFD and will help organisation to meet the TCFD requirements. The guidance paper can be found here.