Climate change is set to challenge the business operations of most companies either directly or indirectly in the short to mid term. In addition to the ongoing war in Ukraine, it is one of the most pressing changes in the operational environment, that companies should prepare and develop strategies for.
The TCFD framework (Task Force on Climate-related Financial Disclosures) developed by The Financial Stability Board, is now available in Inclus’ expanding process template library. The framework helps organizations to identify risks and opportunities related to climate change. It engages and commits top management to change through an inclusive analysis process.
Implementing a climate risk and oppportunities analysis with Inclus
Identifying climate risks and opportunities
The TCFD framework features a risk register with common risks caused by climate change, allowing organizations to reflect on the most relevant risks, now and in the future, from the context of their own business environment.
Inclus’ participatory process helps key stakeholders to address TCFD recommendations, and to identify risks related to the market, energy transition and regulation. Identifying sustainable business opportunities driven by climate change is also part of the TCFD process.
Assessing climate risks and opportunities
Inclus’ participatory assessment allows key stakeholders to express their opinions on TCFD recommendations and identified risks. The assessment process in Inclus supports the facilitation of an effective and productive risk workshop. Inclus’ online assessment ensures that experts have the possibility to articulate their views, and that differing opinions are heard and considered regardless of the group dynamic.
A shared risk overview that shows the varying responses and comments increases common understanding and supports decision-making. The stakeholders’ input brings valuable knowledge to the decision-making process and hgaving participatory process increases their commitment to action points and advancing the issue further.
Monitoring and reporting
Inclus’ participatory assessment process generates an action plan for relevant climate risks and opportunities. The action plan can be viewed for instance as a visual GANTT chart. Responsible persons can monitor the completion of their actions and the visual report allows collective monitoring.
Automated notifications and reminders help responsible persons to prioritize their actions in their daily work.
Moreover, implementing recurring assessments shows the management’s commitment to advancing the issue, and helps to keep the risk overview updated to indicate the effectiveness and quality of risk controls.