Climate-related financial disclosure reporting (TCFD)

Risk management - Reporting climate-related financial disclosures

Guide

Under the framework of the Task Force on Climate-related Financial Disclosures (TCFD), risk management disclosures should provide insight into the maturity of the approach to climate-related risks in your business. This area includes indicating the resources assigned to understanding this systemic risk and the potential for procedural change in the future.

What TCFD recommends on risk management
Recommendation	Disclose how the business identifies, assesses, and manages climate-related risks.
Key aspects	Describe the business’s processes for identifying and assessing climate-related risks
	Describe the business’s processes for managing climate-related risks.
	Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the business’s overall risk management.

This checklist will support you through the risk management disclosures area of TCFD's recommendations, which is about your business' structures and processes. It provides the information you need to know and suggests actions, including further resources and guidance to help you.

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Risk management - Suggested actions
Organisations should describe their risk management processes for identifying and assessing climate-related risks. An important aspect of this description is how organisations determine the relative significance of climate-related risks in relations to other risks.

Describe your processes for managing climate-related risks, including how you make decisions to mitigate, transfer, accept or control those risks. In addition, organisations should describe their processes for prioritising climate-related risks, including how they are assessed, quantified and reviewed.

Organisations should consider providing the following details of their risk management process:

How frequently do you carry out climate risk assessments?

Time horizons covered (short, medium, and long-term)

Risk types considered
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How do you manage these risks?

Businessess should disclose how their key transition and physical risks are being (or are planned to be) managed, and the time horizon for stages of management. You could add this to the Climate Risk Register Template in a new column or include it in an already established risk management tool or business continuity plan you use in your business.
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Complete the Climate Risk Register Template

To help report on business climate change risks and opportunities, Climate NI has developed a Climate Risk Register Template.

Completing the risk register will help identify and prioritise the business risks and assist in meeting the reporting elements for the Strategy and Risk Management sections of TCFD reporting recommendations.

Download the Climate Change Risk Register template (XLSX, 531K).