What is TCFD?
The Financial Stability Board established the Taskforce on Climate-related Financial Disclosures (TCFD) in 2015 to develop a set of recommendations on the disclosures companies should make to help investors and others to assess the risks of climate change.
The TCFD’s eleven recommendations were published in 2017, divided into four categories – governance, strategy, risk management, and metrics and targets. These recommendations are regarded as the comprehensive global baseline of sustainability disclosures and aims to create a common language that details the risk and opportunity linked to a company’s sustainability credentials.
In June 2023, the International Sustainability Standards Board (ISSB) included the TCFD recommendations in their first two sets of ISSB standards, which will become applicable in January.
With TCFD sitting at the heart of the ISSB Standards, it is important for Asset Managers to comply with the eleven recommendations, putting them in a good position for the ISSB regulatory requirements coming as early as July 2024.
FE fundinfo can help you automate the production of TCFD reports for UK asset managers and asset owners, including the disclosure of greenhouse gas emissions, carbon emissions, carbon footprint and carbon intensity.
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How our TCFD Reporting Solution works
As a provider of ESG data agnostic reporting solutions, we receive data from both ESG data providers and our clients. This data is then ingested into our database and, via an API, our calculation engine accesses and analyses the data. Based on the TCFD requirements, we then generate calculations using the integrated ESG data set.
Once the calculations are completed, they are mapped to our document production platform. If the client has provided proprietary data, we import the data from a spreadsheet and then configure the TCFD product report templates, ensuring they are designed according to the specified requirements, and generated using our document production platform.
TCFD Reporting Solution - Key Features
We have the flexibility to support data delivery in any format and from a wide range of sources, making it easy for you to integrate with your current operating model. Whether it's csv or xslx files, or data from internal or third party sources, we can seamlessly ingest this data.
We ensure data alignment between your regulatory reports and your client facing ESG documents such as ESG factsheets, so you can be confident in the consistency and accuracy of all reports produced.
Automated workflows, audit trail and document archive
Our interface is designed to simplify workflow management and optimise sign off procedures, all while maintaining regulatory compliance at scale. Our TCFD reporting application keeps a detailed record of completed actions, which is crucial for maintaining transparency and compliance. Additionally, all published documents are securely archived for a period of 10 years, ensuring easy access for future reviews if necessary.
Publication and dissemination
FE fundinfo's team of data experts are here to assist you throughout the process of publishing your ESG reporting mandates, ensuring that they adapt seamlessly to the integrated Sustainability Disclosures Requirements (SDR) regime as it evolves over time.
How can our TCFD Reporting Solution benefit you?
One challenge to overcome is future-proofing your reporting mandates. Regulatory change is a constant in the fund management industry and we understand the challenges this creates for fund managers and asset owners. FE fundinfo can help with your TCFD compliance at both a product and entity level, providing either a standardised template (with your logo, colours and font) or a fully bespoke template to meet your preferences for inclusion in the annual report.
Streamline your communication process
By leveraging our data and regulatory expertise, you can integrate TCFD data and reports into existing investor communications to streamline your internal processes. FE fundinfo can help produce your TCFD reports based on the ESG data provided by your preferred vendor, together with the direct integration of narratives to fulfil the nine of the eleven TCFD recommendations.
Free-up time and resources
We produce over 550k fund documents annually, so we understand the time involved in undertaking reporting processes in-house. Our workflow-controlled document production portal and our managed service enables you to completely outsource the production of your ESG regulatory and marketing documents freeing up much needed resource to focus on your core business.
The TCFD and the ISSB Standards aim to produce better outcomes for investors through greater transparency, deeper consideration of climate-related risks and opportunities by investing firms, and the provision of more coordinated information flow along the value chain.
FE fundinfo’s TCFD Reporting Solution helps you get ahead of your disclosure requirements and guides you through every step. It puts your business in the best position to comply with the ISSB Standards that will soon take the TCFD recommendations to new heights. Our solution streamlines the process and ensures that your business is ready for the latest regulatory requirements, templates and reporting obligations.
Book a meeting today to speak to one of our ESG reporting specialists, and discuss your reporting requirements in greater detail.