Climate change risks, opportunities and TCFD alignment

We can help you understand and manage climate-related risks and opportunities and report in alignment with TCFD – supporting the future growth potential of your business. 

Overview

Understanding and responding to the future consequences of climate change will allow you to: 

  •  align your business strategy to emerging market trends
  •  create resilience to a more uncertain climate
  •  enhance access to capital
  •  embed sustainability within your corporate culture 

Many organisations are now also reporting their climate change risks and opportunities, following the recommendations from the G20 Financial Stability Board’s Task Force for Climate-related Financial Disclosures (TCFD).

This is increasingly likely to be a legal requirement. For example, from 2022 the FCA requires all UK premium listed companies to comply with, or explain how they will align to, the TCFD recommendations and all UK companies are expected to be required to report under the TCFD by 2025.

However, beyond satisfying regulators, disclosure can bring huge business benefits. 

Our survey of top UK companies identified the following advantages of disclosure:

  • 72% reported increased brand value 
  • 37% reported reduced shareholder pressure and activism
  • 29% reported an increased diversity of investors
  • 21% reported an increased company valuation
  • 31% reported positive financial impact

(2019 Survey commissioned by the Carbon Trust and conducted by Ipsos MORI with board members of the top 500 UK companies.) 

How we can help?

We understand that this might appear to be a challenging and complex undertaking for a business but our approach will support you through each stage. 

We will ensure you get reliable insights to inform your business strategy while also engaging your key stakeholders along the way, to ensure the outputs are fully integrated into your business. It is as much about the journey as it is the destination.

We can help you to achieve the following:

  • Identify business-relevant climate-related risks and opportunities, and quantify the financial impact of these under different scenarios
  • Gain valuable insights from viewing your business strategy through a climate change lens including uncovering potential blind spots
  • Facilitate and streamline the reporting processes and communication of climate change risks to stakeholders, including developing disclosure-ready reporting outputs
  • Design a staged approach for applying the outputs of these insights into initiatives that drive competitive advantage through sustainability
  • Spearhead industry actions and leverage global scale among sustainability leaders, grounded in climate-related risk assessment and management

We know each business is unique so we tailor our approach to suit your business model and apply the right mix of services to achieve your objectives. 

Our services include:

Stakeholder workshops – reviewing climate risks, considering the requirements of investors, regulators and best practice, to help build the case for action.

Gap analysis – helping you to identify improvements in your approach and how to leverage existing work, resulting in a practical roadmap for progression.

Risk and opportunity identification – initial screening to identify key exposures across your business model, likely impacts and support in early stage disclosure.

Risk assessment and scenario analysis – analysing and quantifying the financial impacts to support a business case for change.

Climate change strategy – translating outputs of analysis into initiatives that create resilience and drive competitive advantage.

We will devise a solution that uncovers the most important and relevant considerations for your business.

Why the Carbon Trust? 

We have two decades of experience in carbon business consulting, so we understand the dynamics of business model evolution in response to climate change. 

We know that the majority of risks are embedded in a company’s value chain and we have worked with suppliers and customers for years, we know their challenges and the potential for change. 

As an organisation with a global reach working with policy makers, businesses, financiers and the technologies of the future, we can provide a truly systemic and holistic view on the low carbon transition for your business. 

We are also able to draw on our diverse multi-skilled teams to bring the most appropriate expertise to each client project. 

Find out more and speak to one of our experts

Get in touch to discuss the best solution for your business and how we can help you achieve your sustainability goals.