Decarbonization

Why TCFD Matters

TCFD serves as a structured framework to help businesses identify and manage climate risks while uncovering opportunities for sustainable growth Organizations that adopt TCFD benefit in several ways

• Strengthening investor trust and meeting increasing ESG disclosure expectations
• Enhancing corporate governance by integrating climate risk into decision-making
• Improving financial resilience by preparing for transition risks and regulatory changes
• Ensuring compliance with emerging climate disclosure regulations across different regions

Many jurisdictions including the UAE EU UK and the US are making TCFD-aligned reporting mandatory for large companies and financial institutions Early adoption ensures regulatory compliance and positions businesses competitively in the growing sustainable finance market

TCFD Framework: Key Disclosure Pillars

TCFD recommendations are built around four key disclosure areas These pillars ensure a comprehensive approach to understanding and managing climate risks

1 Governance
How does your organization govern climate-related risks and opportunities

• Defining board and executive-level accountability for climate risk management
• Establishing governance frameworks that integrate ESG considerations into corporate decision-making
• Assigning clear roles and responsibilities for sustainability committees and risk management teams

2 Strategy
How do climate-related risks and opportunities impact business strategy and financial planning

• Identifying short medium and long-term climate risks affecting business operations
• Conducting climate scenario analysis to assess financial exposure under different warming pathways
• Developing climate resilience strategies that align with sustainability commitments and regulatory requirements

3 Risk Management
How does your organization identify assess and mitigate climate risks

• Conducting climate risk and vulnerability assessments to evaluate physical and transition risks
• Integrating climate risks into enterprise risk management ERM frameworks
• Developing action plans to mitigate risks associated with carbon pricing policy shifts and extreme weather events

4 Metrics and Targets
How do you measure monitor and report climate-related risks and progress

• Setting science-based emissions reduction targets SBTi to align with net zero goals
• Implementing GHG monitoring and reporting systems for Scope 1 2 and 3 emissions
• Disclosing key performance indicators KPIs to track sustainability progress and financial impacts

Climate Scenario Analysis and Financial Risk Modeling

Understanding future climate risks is crucial for businesses to navigate uncertainties Climate scenario analysis allows organizations to assess financial risks under different global warming trajectories

Our approach includes:

• Evaluating climate risks under 15°C 2°C and 4°C warming scenarios
• Assessing financial impacts of carbon pricing supply chain disruptions and extreme weather patterns
• Providing sector-specific risk insights to enhance resilience and long-term planning

By integrating scenario analysis businesses can make informed decisions and strengthen financial preparedness against climate-related challenges

Regulatory Compliance and Global Reporting Alignment

With regulatory bodies making climate disclosures mandatory TCFD adoption helps organizations stay ahead of compliance requirements

Global Regulatory Trends in TCFD Reporting

• EU – CSRD Corporate Sustainability Reporting Directive mandates TCFD-aligned reporting for large companies
• UK – Large businesses must disclose climate-related risks under TCFD guidelines
• USA – SEC’s proposed climate disclosure regulations follow TCFD principles
• UAE – ESG reporting requirements for listed companies and financial institutions align with TCFD recommendations

TCFD Alignment with Other ESG Frameworks

Organizations often report under multiple ESG frameworks We streamline the reporting process by aligning TCFD disclosures with other sustainability standards including

• CDP Carbon Disclosure Project for enhancing corporate climate transparency
• SBTi Science-Based Targets Initiative for setting net zero-aligned emissions reduction goals
• GRI Global Reporting Initiative for integrating climate materiality into sustainability reporting
• IFRS Sustainability Standards ISSB for harmonized global ESG disclosure frameworks

Our expertise ensures that businesses efficiently align their ESG disclosures reducing redundancy and enhancing reporting effectiveness