Four letters – T, C, F and D – could spell the difference between apathy and action on climate change among major New Zealand businesses.
TCFD is a model being adopted by leading businesses from Australia to Europe to identify, measure and manage the risks they face from a global rise in temperature.
Named after the Taskforce on Climate-related Financial Disclosures (TCFD for short), its logic is powerful: climate change is a financial risk. Investors and shareholders are demanding a better understanding of that risk and TCFD provides a framework for doing just that.
Globally, estimated losses to business are staggering. Assets at risk from climate change is valued in the trillions of dollars. Businesses must show investors they understand how climate change will impact their prospects, that they have a plan to manage risks and are able to demonstrate action.
Read more about how Meridian Energy is the first New Zealand company to report on how to cope with and benefit from climate change here.