Task Force on Climate-related Financial Disclosures (TCFD) is essential in providing a framework for companies to give out information to insurers, investors, lenders, and other stakeholders. The recent webinar held by Asian Corporate Governance Association (ACGA) and supported by Hong Kong Green Finance Association (HKGFA) has demonstrated the importance of TCFD and ESG disclosure. The webinar was well-supported with over 100 participants, which featured a panel discussion with a lineup of the moderator: Ms. Hannah Routh, Partner, Asia Pacific Leader for Sustainability and Climate Change, Deloitte China, Hong Kong and expert speakers from the green finance realms, including Dr. Matthew Bell, Asia Pacific Leader, Climate Change and Sustainability Services, Ernst & Young, Brisbane, Ms. Pru Bennett, Principal, Tawarri Consulting, Sydney; ACGA Council Member, Ms. Megan Saussey, General Manager, Sustainability and Community, APA Group, Australia. Feel free to read the highlights or watch the webinar below.
Another Awkward Acronym: Demystifying TCFD
10 June 2020
Moderator
- Hannah Routh, Partner, Asia Pacific Leader for Sustainability and Climate Change, Deloitte China, Hong Kong
Speakers
- Matthew Bell, Asia Pacific Leader, Climate Change and Sustainability Services, Ernst & Young, Brisbane
- Pru Bennett, Principal, Tawarri Consulting, Sydney; ACGA Council Member
- Megan Saussey, General Manager, Sustainability and Community, APA Group, Australia
Key takeaways from the webinar
- TCFD is a guide of climate risks and opportunities for companies and investors that invests on ESG.
- TCFD should not be used solely as an analysis but incorporated into governance decisions through daily business decisions and framework.
- Importance of a successful ESG reporting situation is richness and robustness of the data and information disclosed, not only to the board of the company but also to current and possible investors.
Ms. Hannah Routh, Partner, Asia Pacific Leader for Sustainability and Climate Change, Deloitte China, Hong Kong reminded the audience not to have the assumption that the climate change situation is more complicated than it is. When ESG analysis is done in a parallel process with management framework and business operations, accessing climate risks and solutions for the company would be easier yet pivotal than it seems.
Dr. Matthew Bell, Asia Pacific Leader, Climate Change and Sustainability Services, Ernst & Young, Brisbane stated that more investors view ESG reporting or TCFD as increasingly impactful on decision-making when investing. In the surveys on how investors utilize ESG disclosure, more than two-thirds of respondents view TCFD as significant or very significant when investing. TCFD should not be just analysis, but should be incorporated into a company’s business framework and risk management processes that enable firms to investigate on their future economic performances
Ms. Pru Bennett, Principal, Tawarri Consulting, Sydney; ACGA Council Member emphasized on the role of governance in ESG disclosure. The Board’s position is essential in overseeing the climate change situation, deciding on what information they should disclose to the investors. This would allow them to understand how various risks and opportunities would impact the company’s future financial position and the effectiveness of the firm’s strategies in responding to the changes.
Ms. Megan Saussey, General Manager, Sustainability and Community, APA Group, Australia suggested some dos and don’ts for firms on TCFD. Her view is similar to Matthew in that both agree TCFD should be integrated into a corporate planning process and be used as a guide of climate risks and opportunities for the company to explore future solutions and mitigations. She shared her previous experience in another firm when they started ESG reporting. A major point shines through her sharing: early engagement with shareholders is critical in acknowledging their expectations and spreading the rationale and goal of ESG reporting, which would ease the goal-meeting process in further stages.
(Left to Right, Top to Bottom) Ms. Hannah Routh, Partner, Asia Pacific Leader for Sustainability and Climate Change, Deloitte China, Hong Kong, Ms. Megan Saussey, General Manager, Sustainability and Community, APA Group, Australia, Dr. Matthew Bell, Asia Pacific Leader, Climate Change and Sustainability Services, Ernst & Young, Brisbane, Ms. Pru Bennett, Principal, Tawarri Consulting, Sydney; ACGA Council Member, Mr. Jamie Allen, Founding Secretary General, ACGA.