Climate-related financial disclosure reporting (TCFD)

Metrics and targets - Reporting climate-related financial disclosures

Guide

Under the framework of the Task Force on Climate-related Financial Disclosures (TCFD), metrics and targets disclosures should enable an understanding of any targets your business has set to help assess its progress in managing climate-related risks and opportunities. This should include how it intends to meet those targets and how it monitors and assesses progress over set timeframes.

What TCFD recommends on metrics and targets
Recommendation	Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.
Key aspects	Disclose your metrics for assessing business climate-related risks and the opportunities aligned with strategy and risk management process.
	Disclose Scope 1 and Scope 2 GHG emissions, and if appropriate, Scope 3 greenhouse gas (GHG) emissions and the related risks.
	Describe your targets for managing business climate-related risks and opportunities and how you measure performance against targets.

This guide deals with the impacts of climate change - you can find more information on how to reduce your GHG emissions, on how to become a net zero business, on how to adapt your business to climate change and steps your business can take to mitigate climate change.

Organisations should provide their Scope 1 and Scope 2 GHG emissions, and if appropriate, Scope 3 GHG emissions and the related risk in transitioning to a low-carbon economy. Businesses can access a reporting platform to report their scope 1 and 2 emissions by signing up to Business in the Community's NI Climate Action Pledge.

This checklist will support you through the metrics and targets area of the TCFD recommendations, which is about your organisational structures and processes. It provides the information you need to know, suggested actions for including climate-related risks in your reporting, and further resources and guidance to help.

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1
Metrics - Suggested actions
Businesses should state the key metrics used to measure the risks and opportunities outlined in the Climate Risk Register Template. Consider providing metrics related to greenhouse gas emissions, energy use, water use and waste management. TCFD has provided illustrative metrics for four non-financial groups, which may help businesses consider the type of metrics best suited for their operations:

Energy (PDF, 2MB)

Transportation (PDF, 2MB)

Materials and Buildings (PDF, 2MB)

Agriculture, Food and Forest Products (PDF, 2MB)
2

Targets - Suggested actions

Organisations should describe their key climate-related targets, such as those related to GHG emissions, water usage. Other targets may include revenue goals for products and services designed for a lower-carbon, resilient economy. Remember to include information on time frames for the target, the baseline year targets are measured against, and key performance indicators used to assess progress against targets.