We prepare sustainability reports following the guidelines of the Global Reporting Initiative (GRI), the Task Force on Climate-Related Financial Disclosures (TCFD) and, the new proposed Corporate Sustainability Reporting Directive (CSRD). In our opinion, not all reports have to follow the various GRI requirements. It is an evolving process of the company that should be much more linked to the real culture of the company than to mere compliance with a standard. Moreover, the Reporting Standards released by the European Commission will soon be out, and therefore further adjustments will have to be made.
When reporting this information, the organisation will need to collect quantitative and qualitative information on how climate change impacts their business, how they defend the human rights of their employees and suppliers, and how they quantify the environmental impacts – from GHG emissions to effluents and waste created – among many others.
With over 20 Sustainability Reports developed over 15 years, we help organisations to:
- Develop the content, collect, aggregate and analyse sustainability performance data;
- Engage their stakeholders and choose the material topics for disclosure;
- Craft the sustainability report according to the organisational culture;
- Make company’s disclosures more transparent and accurate with regard to sustainability reporting;
- Implement a system for collecting sustainability information.
CLIMATE AND NATURE RISKS
TASKFORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)
We help organisations understand their activity’s exposure to climate-related risks, thus promoting more informed management and investment decisions. For this purpose, we:
- Identify, prioritize, and quantify climate-related risks and opportunities;
- Calculate greenhouse gas emissions (scope 1, 2, and 3);
- Develop, together with the company, scenario planning analyses;
- Develop action roadmaps to implement the TCFD recommendations, considering its four pillars: Governance; Strategy; Risk Management; and , Metrics & Targets;
- Prepare climate-risk reporting, according to the TCFD recommendations.
The Financial Stability Board (FSB) established, in 2015, the Task Force on Climate-Related Disclosures (TCFD) to advise companies on how to report risks and opportunities arising from climate change.
Today, the TCFD recommendations are recognized globally as reporting guidelines that financial and non-financial companies should disclose to inform the market, and governments and investors on how they are adapting their business to climate change, in order to minimize potential climate risks and take advantage of associated opportunities.
With the increasing recognition of financial climate risks, more and more governments, investors, and financial sector organisations are advising, and even requiring, the reporting of these risks in accordance with the TCFD recommendations.
The TCFD recommendations are, in part, reflected in the Corporate Sustainability Reporting Directive (CSRD), formerly European Non-Financial Reporting Directive (NFRD). It is also expected that the Sustainability Reporting Standards, which will be developed by the European Commission, will also be aligned with the TCFD recommendations.
TASKFORCE ON NATURE-RELATED FINANCIAL DISCLOSURES (TNFD)
We support organisations in assessing emerging nature-related risks and opportunities. To do this, we use the TNFD framework which complements the TCFD (climate-related) framework, that provides to companies and financial institutions a complete picture of their environmental risks.
By assessing your impacts and dependencies on natural resources, we calculate the physical risks, transition risks, and systemic risks to which your company is exposed to. The main objective of this benchmark is to minimize negative, and increase positive outcomes.
The launch of the final TFND will be in 2023, but we are already diving into this topic.
WHY REPORT USING THE TNFD FRAMEWORK?
To assess nature-related risks there needs to be data and metrics that can be standardized. Only then is it possible for financial institutions to compare risk across companies and projects.
According to the United Nations “More than half of the world’s economic output – $44tn of output of economic value – is moderately or highly dependent on nature”. The recorded extinction of 83% of wild mammals and 50% of plants therefore poses a significant risk to financial and business stability. Action for natural-positive transitions could generate up to USD $10.1 billion in annual business value and create 395 million jobs by 2030.
 WEF: Nature Risk Rising: Why the Crisis Engulfing Nature Matters for Business and the Economy
 PNAS: The biomass distribution on Earth.
 WEF: New Nature Economy Report 2: The Future of Nature and Business
PRINCIPLES FOR RESPONSIBLE INVESTMENT (PRI)
Financial institutions that are signatories of the Principles for Responsible Investment (PRI) initiative must disclose annually how they are complying with these principles. Systemic, with a team of experts in Sustainable Finance, assists institutions in the development of strategies and reports that help them progress in the implementation of these principles.
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