The Task Force on Climate-related Financial Disclosures (TCFD) is a framework for disclosing climate-related risks, focusing on governance, strategy, risk management, and metrics and targets. MSCI ESG Research provides data and metrics to support TCFD-aligned reporting, including carbon footprinting, climate-related financial risk assessments, and temperature alignment metrics. The framework helps organizations evaluate climate-related risks, make informed capital allocation decisions, and understand short-, medium-, and long-term exposures. MSCI offers sophisticated climate risk analytics ...
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MSCI
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The Task Force on Climate-related Financial Disclosures (TCFD) is a widely accepted framework for organizations to disclose climate-related risks and opportunities. It focuses on four key areas: governance, strategy, risk management, and metrics and targets. MSCI ESG Research provides comprehensive data and metrics to support TCFD-aligned reporting, including carbon footprinting across asset classes, assessments of climate-related financial risks, and portfolio-level temperature alignment metrics. The TCFD framework has gained significant traction globally, with national regulators starting to mandate TCFD-aligned rules. This has led to increased adoption by organizations worldwide. MSCI offers sophisticated climate risk analytics and streamlined reporting processes to help institutional investors meet the highest standards of global financial disclosure.
Key Features
Carbon Footprinting MSCI provides carbon footprinting capabilities across various asset classes, aligned with the Partnership for Carbon Accounting Financials' (PCAF) methodology
- Portfolio-level carbon footprint calculation
- Sector and security-level carbon data
Climate Risk Assessment The platform offers tools for assessing climate-related risks using scenario analysis
- Evaluation of climate-related risks for companies, suppliers, and competitors
- Short-, medium-, and long-term exposure analysis
Temperature Alignment Reporting MSCI enables reporting on portfolio temperature alignment, a key aspect of TCFD recommendations
- Portfolio-level temperature alignment metrics
- Comparison with global climate targets
Benefits
Enhanced Risk Management The TCFD framework helps organizations better understand and manage climate-related risks
- Comprehensive evaluation of climate-related risks
- Improved decision-making for risk mitigation strategies
Informed Capital Allocation TCFD-aligned reporting supports better-informed capital allocation decisions
- Data-driven insights for investment strategies
- Consideration of climate-related factors in financial planning
Strategic Planning The framework enables organizations to understand their climate-related exposures over different time horizons
- Short-, medium-, and long-term exposure analysis
- Integration of climate considerations into business strategy