Requiring disclosure of significant climate-related issues which have impacted and may impact the issuer. Specifically, it regulates the policies on identification and mitigation of significant climate-related issues which have impacted, and those which may impact, the issuer, and description of the actions taken to manage them
Opportunities for Companies:
Climate change is a topic determining the characteristics of our era. The impacts of global warming on enterprises in certain industries are long-lasting and existent. Along with the increasing demand for environmentally friendly assets by investors, the provision of valid and accurate information around how enterprises tackle climate change-related risks appears to be an unavoidable point in disclosure. To enterprises themselves, the evaluation of the implications of climate change on the value chain and product/service lifecycle scientifically with tools such as scenario-based analysis can assist them to understand and substantially enhance their resilience to climate-related risks in the industry to which they pertain.
Challenges & Solutions for Directors:
In the long run, both physical risks and transition risks may pose threats to the profitability, asset valuation, financial health and brand reputation of an enterprise to varying degrees. If companies do not pay attention to their risk management or look at climate change from a long-term investment perspective, they may be jeopardised by policy changes, climate risks and market fluctuations more likely and seriously. Thus, GreenCo suggests that enterprises carry out a self-examination that facilitates them to garner a deep understanding of the climate-related risks they are confronted with by referring to the TCFD recommendations.