The taskforce for climate-related financial risk disclosures (TCFD) was set up to help investors understand their financial exposure to climate risk and help companies disclose this information in a clear and consistent way within their mainstream filings. After extensive consultation, the TCFD released recommendations in 2017 that encourage businesses from all sectors to assess and disclose climate-related financial risks, along with their strategies for dealing with the impacts of climate change, and to voluntarily integrate this information into their financial filings and existing disclosures.

The TCFD recommendations place considerable emphasis on undertaking scenario analysis to consider how climate-related risks and opportunities may emerge and evolve to impact business strategy. Companies should describe the resilience of their strategies through climate-related scenarios, including ones that explore the requirements of a 2.0 ^oC or lower emissions trajectory and the consequences of higher emissions trajectories. These scenarios include looking at the potential impact of carbon regulation and carbon pricing, increasing extreme weather events, and declining access to non-renewable energy sources.

At the time of this guide's release, the four primary documents released by the Task Force include a recommendations report, a guide on implementing the recommendations, a technical supplement on using scenario analysis, and a 2018 status report. We recommend that you read them prior to developing or updating your climate change position statement.