The EY Global Taskforce on Climate-Related Financial Disclosures (TCFD) report deepens dimensions of the perspectives shared in Value Realized 2022, our annual report on the impact we have on our stakeholders – EY people, clients and society – and our progress toward achieving our NextWave strategy and ambition of creating long-term value as the world’s most trusted, distinctive professional services organization.
This report focuses on the climate risks to our people and business, the opportunity to help EY clients decarbonize, and how we are accomplishing our Carbon Ambition of becoming net zero in 2025. Our perspectives address the four climate disclosure themes recommended by the TCFD — governance, strategy, risk management, and metrics and targets.
Download the EY Global TCFD Report here (pdf).
What is TCFD?
The Financial Stability Board created the industry-led TCFD in 2015 to establish recommendations for consistent “disclosures that will help financial market participants understand their climate risks.” In 2017, the TCFD issued recommendations to address gaps in the information disclosed on the financial impact of climate risk across the investment chain. Since then, companies around the world have increasingly embraced these recommendations.
EY2 recognized the importance of the TCFD recommendations to achieving this market transparency by becoming a supporter in the year of their publication. EY is proud to have the EY Oceania Chief Sustainability Officer, Mat Nelson, as a member of the TCFD Task Force.
The TCFD recommendations are structured around four themes that reflect core elements of how organizations operate:
- Risk Management
- Metrics and Targets
TCFD guidelines encourage companies to use climate scenario analysis to investigate and disclose three categories of climate-related information: physical risks, transition risks and opportunities.