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Strategy - Reporting climate-related financial disclosures

How to disclose the impacts of climate-related risks and opportunities on your operations, strategy, and financial planning in TCFD reporting.

Within the Task Force on Climate-related Financial Disclosures (TCFD), strategy disclosures should help you understand the risks and opportunities posed by climate change. They provide insight into the potential impact of these factors on your business and highlight existing and planned mitigation actions, where appropriate.

What TCFD recommends on strategy
Recommendation	Disclose the actual and potential impacts of climate-related risks and opportunities on your business' strategy, and financial planning where such information is material.
Key aspects	Describe the climate-related risks and opportunities your business has identified over the short, medium, and long term.
	Describe the impact of climate-related risks and opportunities on your business' strategy, and financial planning.
	Describe the resilience of your business' strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.

Climate change will bring a wide range of both positive and negative impacts to businesses. Like any other issue facing your business, it is important to understand how extreme weather and climate change impacts could affect you.

Planning ahead where possible, rather than responding reactively, will help you to:

save your business money in the long term
give your business the best chance to continue to operate and meet customer orders, despite the weather
identify possible business opportunities, eg new products or services, reduced costs

Climate-related risks

TCFD divides climate-related risks into two main categories:

Transition risks (related to the transition to a low-carbon economy)
Current and emergent regulation	Policy developments that attempt to constrain actions that contribute to the adverse effects of climate change or policy developments that seek to promote adaptation to climate change.
Technology	Risks associated with technological improvements or innovations that support the transition to a low-carbon economic system.
Legal	Climate-related litigation claims.
Market	Shifts in supply and demand for certain commodities, products, and services.
Reputation	Risks tied to changing customer or community perceptions of a business' contribution to or detraction from the transition to a low-carbon economy.
Workforce	Is your business going to be able to find the right skills for its post-transition form, eg electric vehicle mechanics?
Financial market	Is your business prepared for your finances to be tied to green policies and/or to bear a higher interest rate if you do not meet green criteria?
Physical risks (related to the physical impacts of climate change)
Acute	Risks that are event-driven, including increased severity of extreme weather, eg flooding, heatwaves, storms.
Chronic	Longer-term shifts in climate patterns, eg sea-level rise.

This checklist will support you through the strategy disclosures area of TCFD's recommendations, which is about assessing and reporting on actual and expected climate-related risks to your business. Key impacts that climate change could have on specific business functions, applicable to any business or sector, are highlighted with questions that will help you plan actions to improve the resilience of your business.

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Supply chain - Impacts and actions

Impacts

Business logistics, including supply chains, utilities and transport arrangements, can be disrupted by extreme weather events. Those that rely heavily on utilities, the transport network or who have inflexible supply networks will be particularly vulnerable. Businesses in Northern Ireland must consider the additional supply chain logistics of crossing the Irish Sea for supplies and deliveries to Great Britain.

Risks
Flooding (high rainfall, coastal and river)	Flooding and landslips will disrupt transport for deliveries.
Extreme weather events (storms and intense cold)	Extreme weather events can cause disruption of supply chains due to: transport disruption impact on suppliers, eg flooding of premises changes in raw material price or availability
	Extreme weather events can cause disruption to utilities supply and distribution.
	Utilities such as energy distribution and drainage infrastructure are generally vulnerable to extreme weather events.
Opportunities
Competitive advantage for companies with flexibility built into delivery systems and supply chains or those undertaking business continuity planning.
Supplying local markets creates an opportunity for a marketing approach based on regional distinctiveness or reduced product miles.
Developing a diverse network of suppliers (especially local) can simplify access to supplies in bad weather, increasing your resilience.

Suggested actions

What would happen to your business if suppliers cannot get to you because of weather-related disruptions?
Have you considered what would happen if you cannot get your products/services to your customers or if your customers cannot get to you?
Have you considered alternative suppliers and/or increasing storage capacity to increase your ability to operate without deliveries?
Do you have any processes or products that are sensitive to changing temperature or climate conditions?
Have you considered the circumstances under which you might decide to scale back or suspend operations during weather-related disruptions?
Have you identified critical activities and the employees and inputs required to maintain them?

Finance/insurance - Impacts and actions

Impacts

Climate change will impact business finances through the cost of damage, supply chain disruption and lost sales. A climate-resilient business is ultimately more insurable, more profitable, and more investable.

Risks
Flooding and extreme weather events.	Flooding damage and other severe weather events could result in unplanned business costs.
	An increase in extreme weather events will see more insurance-related issues.
	Global climatic events could impact international investments or products sourced from overseas.
	Cost implications for retrofitting existing buildings or relocating to cope with climate impacts.
	Failure to climate-proof your business, eg product range, and premises, will increase the potential for legal action, increase insurance premiums and reduce confidence amongst investors.
	Taking no action to prevent the risks and impacts of climate change could cost the business more in the long term.
	Disruptions to supply chains can have significant negative financial impacts.
Opportunities
Proactive risk assessment and implementation lead to a decrease in potential risks and a reduction in liabilities.
Clients and customers attracted to businesses that can show they are resilient to climate change.
New insurance products and services that spread the risk of climate change.
Increasing resilience now can pay off many times over in the future.
More weather-related claims improve the efficiency per claim.

Suggested actions

When did you last check that you have the insurance you need?
Are you covered for floods and storm events?
What are your insurance limits? Check excess and coverage terms and conditions, watch for small print and under-insuring.
Does your policy cover the full value of your business?
Do you keep documents safe from weather impacts (and store copies off-site)?
Do you have business continuity cover if your business is interrupted?
Do you have a business continuity plan?
Have you considered the financial management implications of a severe weather event?

Products and services - Impacts and actions

Impacts

Risks
Flooding (high rainfall, coastal and river)	Increased heavy rainfall and flood risk will increase demand for products, services and expertise to support sustainable water resource management.
Flooding (high rainfall, coastal and river)	Negative impact on reputation if insurance becomes unavailable in areas of increasing risk, such as high-risk zones for flooding or subsidence.
High Temperatures and Drought	Existing buildings not well-adapted to new climate, especially in hot summer conditions, leading to reduced value of existing buildings if they are not future climate-proofed.
	Quality issues relating to climate, eg overheating of grain, and supermarkets demanding washed produce – which is very water intensive.
	Reduced occurrence of frost and snowfall may have business implications for those that rely on the winter season.
Extreme Weather Events (storms and intense cold)	Maintaining a supply to markets could become more challenging particularly for businesses that heavily rely on climate-sensitive supply chains.
Opportunities
New innovative products, or modifications to existing products, in response to a changing market.
Warmer conditions could see an increased demand for more parks and gardens and further extend the growing season with potential benefits for agriculture and forestry.
Advantages for those who are quick to respond to changing markets and lifestyles.
Increased business opportunities in some sectors because of an extended tourist season, warmer summers and longer growing seasons.

Suggested actions

Is your business product or service weather or climate-sensitive?
Have you put in place measures to increase your business' resilience?
Does your business have global markets or suppliers that could be affected by climate change in other countries?
Have you considered establishing alternative suppliers for critical goods and services?
How would it impact your customers if you could not provide your product or service?
Would it change your customers’ requirements?
To what extent do others depend on your business in the event of a severe weather event?
Have you considered the possibility of changes to your product, service, or channels of customer interaction during a prolonged severe weather event and plan for any appropriate changes?

Operations - Impacts and actions

Impacts

Risks
Flooding (high rainfall, coastal and river)	Flood or torrential rain conditions may cause difficulties accessing premises, land or sites.
High Temperatures and Drought	Hotter summers may impact IT equipment such as servers, on-site construction processes, food preparation and storage.
	Existing crops may no longer be viable in new climatic conditions.
	A warmer climate may cause pests and diseases to spread and new threats to become established limiting the potential for increased productivity in the agriculture and forestry sector.
	Water quantity and quality may be reduced in the summer months impacting on manufacturing processes relying on water.
Extreme Weather Events (storms and intense cold)	Extreme events can cause damage or disruption to some production processes.
Opportunities
A warming climate may improve the growing conditions of certain crops in Northern Ireland and increase the productivity for agriculture and forestry.
Warmer conditions and longer growing seasons will mean new species and varieties of plants.
Increase in the frequency and intensity of heavy rainfall events will present opportunities to develop expertise and technology in water management and drainage.
As the climate changes, there will be an increased need for skills and expertise designing well-adapted buildings and managing construction processes in response to climate change.
There will be opportunities to develop new farming and forestry practices that support increased resilience.

Suggested actions

Should your computers be unavailable, what processes would be affected, eg orders, payroll, contacts, and would your business still function?
Do you have documentation of all key processes/procedures?
Do you scan important physical documents and store the originals off-site?
Have you considered backup utilities – energy and water?
What arrangements are in place to ensure the availability of supplies in the event of a severe weather event?
Have you considered where you store your products, stock, and raw materials?
Does your business depend on water? If there was a drought would you be able to reduce your water usage while continue running your business?
Have you identified which equipment is potentially vulnerable to flooding, and which equipment your business could not operate without?
Have you considered the possibility of changes to your product, service, or channels of customer interaction during a prolonged severe weather event and planned for any changes?
Do you have a contact list of current and alternative suppliers?

Scenario planning - Impacts and actions

Impacts

One of the recommended disclosures from TCFD focuses on the resilience of a business’ strategy. This evaluation involves considering different climate-related situations, including a 2°C or lower scenario, which is the target of the UN Paris Agreement. This objective aims to limit the increase in global average temperatures to a maximum of 2°C from pre-industrial levels. However, current projections indicate that temperatures may rise to as much as 3°C or 4°C degrees by the end of the century. Each degree of global warming significantly impacts the global climate system and increases risk for society, the environment and the economy.

Scenario
Indicator	2°C in 2100	4°C in 2100
Average Annual Temperature	+ 1.27°C	+ 2.5°C
Average Mean Rainfall	1.25% change	2.93% change

Suggested actions

Think about what impacts you are already seeing in your business and what areas are being affected by asking questions such as:

How might your governance procedures have to change between a 2°C and 4°C world?
How might your risk management processes have to change between a 2°C and 4°C world?
How might your supply chain, finance/insurance, products and services, and operations be impacted and what action can you take to reduce these risks?
How might these changes affect your transition risks?
What metrics and data, eg weather-related losses and supply disruption, are you already gathering which could help inform these decisions? Are there any priority data gaps?

You can download the full guide on Climate Change Resilience for Businesses in Northern Ireland (PDF, 1.4MB).

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Risk management - Reporting climate-related financial disclosures

How to disclose how your business identifies, assesses, and manages climate-related risks in TCFD reporting.

Under the framework of the Task Force on Climate-related Financial Disclosures (TCFD), risk management disclosures should provide insight into the maturity of the approach to climate-related risks in your business. This area includes indicating the resources assigned to understanding this systemic risk and the potential for procedural change in the future.

What TCFD recommends on risk management
Recommendation	Disclose how the business identifies, assesses, and manages climate-related risks.
Key aspects	Describe the business’s processes for identifying and assessing climate-related risks
	Describe the business’s processes for managing climate-related risks.
	Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the business’s overall risk management.

This checklist will support you through the risk management disclosures area of TCFD's recommendations, which is about your business' structures and processes. It provides the information you need to know and suggests actions, including further resources and guidance to help you.

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1
Risk management - Suggested actions
Organisations should describe their risk management processes for identifying and assessing climate-related risks. An important aspect of this description is how organisations determine the relative significance of climate-related risks in relations to other risks.

Describe your processes for managing climate-related risks, including how you make decisions to mitigate, transfer, accept or control those risks. In addition, organisations should describe their processes for prioritising climate-related risks, including how they are assessed, quantified and reviewed.

Organisations should consider providing the following details of their risk management process:

How frequently do you carry out climate risk assessments?

Time horizons covered (short, medium, and long-term)

Risk types considered
2

How do you manage these risks?

Businessess should disclose how their key transition and physical risks are being (or are planned to be) managed, and the time horizon for stages of management. You could add this to the Climate Risk Register Template in a new column or include it in an already established risk management tool or business continuity plan you use in your business.
3

Complete the Climate Risk Register Template

To help report on business climate change risks and opportunities, Climate NI has developed a Climate Risk Register Template.

Completing the risk register will help identify and prioritise the business risks and assist in meeting the reporting elements for the Strategy and Risk Management sections of TCFD reporting recommendations.

Download the Climate Change Risk Register template (XLSX, 531K).

You can download the full guide on Climate Change Resilience for Businesses in Northern Ireland (PDF, 1.4MB).

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Metrics and targets - Reporting climate-related financial disclosures

How to disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities in TCFD reporting.

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.

You can download the full guide on Climate Change Resilience for Businesses in Northern Ireland (PDF, 1.4MB).

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Climate-related financial disclosure reporting (TCFD)

Adopting the TCFD reporting framework in our business – Phoenix Energy

How Phoenix Energy’s focus on TCFD reporting has helped the business to develop a realistic pathway to reach net zero.

Phoenix Energy, based in Belfast, owns and operates the largest natural gas distribution network in Northern Ireland, supplying energy to more than 370,000 properties and over 260,000 customers.
Gareth Wright, Director of Business Services, explains how Phoenix Energy implemented the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) into their business reporting.
Why TCFD matters to our business
“As a large business in the energy sector, we understand the significant impact our operations can have on climate change, and we take this responsibility seriously. We’ve consistently led by example in responsible business practices, demonstrated through our participation in the NI Environmental Benchmarking Survey, recognition as a Sector Leader by GRESB (a Global Sustainability Assessment), and our achievement of ISO 22458 for Consumer Vulnerability.”
“We voluntarily adopted the TCFD recommendations in 2020, publishing our first disclosures in June 2021. This decision was driven by our commitment to our Environmental, Social, and Governance (ESG) Strategy and our vision to be recognised for excellence as a world-leading energy utility.”
How we did it
“Our TCFD journey began by partnering with an external consultant. A collaborative gap analysis helped us identify critical steps. We then built the necessary foundation through climate change workshops, qualitative climate change scenario analysis, and the development of a climate-related Risks and Opportunities Register.”
“We deepened our understanding and resilience to climate change through climate change scenario analysis using long-term financial modelling. This challenging work delivered detailed outputs, providing crucial insights into the potential financial impacts of different climate change scenarios. Consequently, our TCFD reporting improved significantly, enabling us to develop a realistic yet challenging pathway towards net zero.”
“We integrate TCFD reporting into both our financial statements and our Responsible Business Report, aligning it seamlessly with our broader ESG Strategy. This unified approach reflects our commitment to leading climate action, driven by dedication rather than brand recognition, for the benefit of both our company and the communities we serve.”
The benefits of TCFD
“TCFD reporting has significantly enhanced our understanding of climate change and its potential impact on our business operations, enabling proactive planning and preparation. We’ve identified critical climate-related risks, including increased operating costs from extreme weather and potential network disruptions. Events like the 2023 flooding in Downpatrick highlight the tangible reality of these risks and reinforce the necessity of our proactive planning and robust response strategies.”
“TCFD reporting has enhanced climate-related intelligence across our leadership, operational, and technical teams, actively driving internal change and embedding climate considerations into decision-making at all levels. This approach strengthens our resilience and solidifies our position as a responsible business, fully prepared for future challenges.”
How TCFD prepares us for the future
“We've learned that continuous engagement and regular reviews are essential. Analysis cannot be a one-time task; it demands ongoing updates to remain relevant and accurate. Regularly re-running scenario analyses and reviewing risks ensures our findings align with the latest developments. Staying current with emerging guidance is also crucial for effectiveness and compliance.”
“Moving forward, we will continue to evolve our framework for ongoing reviews and explore new tools to enhance the efficiency of our analysis. This will streamline the process, ensuring we remain aligned with best practices and new developments.”

Case Study
Gareth Wright

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What is the circular economy?

How to reuse wasted resources in your business

In this guide:

What is the circular economy?

How a circular economy works to minimise use of finite resources and reduce waste and how your business can benefit.
In our current economy we take materials from the earth, make products from them, and eventually throw them away as waste.

The process is mostly one-way and it operates as though:

there is an infinite supply of resources

the earth has infinite capacity to deal with our waste

However this is not the case.

How a circular economy works

A circular economy is about reducing the amount of waste being produced in the first place. It is a model in which we:

rethink and reduce our use of finite resources

switch to renewing resources

minimise waste

maintain the value of products and materials for as long as possible

By designing out waste from concept to production and use, by-products and end-of-use waste can be a resource, and a valuable secondary raw material.

Becoming a circular economy requires all levels of society - government, businesses, innovators, investors, entrepreneurs and consumers - to play their part in the process and work together to minimise disruption.

How to become a circular business

A circular business maximises benefits from all its resources, while reducing negative environmental impacts from their use.

Innovation is central to achieving greater outputs through more efficient use of resources. By doing things differently businesses can create value which is essential for driving productivity and competitiveness.

Circular use of materials in your business may need new process improvements, data and analytics, emerging technology, skills and more agile thinking to increase productivity.
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Advantages of reusing waste

The benefits of reusing waste in your business or enabling another organisation to reuse it as a resource.
You may be able to reuse materials and equipment in your own business or another organisation may be able to reuse your unwanted and wasted resources.

Reusing resources can reduce the costs of buying raw materials or having to pay for disposal. You may also be able to generate income from materials and goods that are valuable to another business.

Reusing wasted resources within your business

The goods and materials you can reuse will depend on your type of business. Office-based businesses, for example, can:

refill toner and ink-jet cartridges

use waste paper as notepaper

use durable cups, mugs, glasses and cutlery rather than disposable alternatives

reuse envelopes and other packaging

donate used equipment and furniture to charities

use greywater recycling systems for your toilets

Manufacturing businesses, for example, may be able to reuse packaging and off-cuts, and capture waste heat generated by manufacturing processes for heating or reuse elsewhere in production.

You should speak to your staff and ask them to 'think before they throw' as someone else may want to use their waste.

Reuse by other organisations

You can offer unwanted materials to other organisations which can use them without alteration, such as:

production by-products

second-hand products

end-of-line products

obsolete equipment

Industrial symbiosis encourages resource matching between businesses - you can find out more about the advantages and disadvanges of trading waste and what resource matching is.

You could try business-to-business online waste exchanges which trade a wide range of used industrial materials and equipment. You may also be able to sell goods and materials on online auction sites.

Donating goods and materials can improve the image of your business and demonstrate your corporate social responsibility.

Whichever way you choose to deal with your wasted resources, you are responsible for making sure you comply with your duty of care for business waste.
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What is resource matching?

How matching resources between businesses can improve profitability in the local economy and benefit the environment.
Resource matching is the transferring of unwanted materials from one business or organisation to be reused, recycled, reprocessed and repackaged by another.

Agreeing to receive wasted resources can be on the basis of:

being paid for waste

paying nothing for its removal

paying less than the cost for its disposal

Invest NI has a free Industrial Symbiosis Service that provides guidance and introductions on how to achieve resource matching specific to your business needs. The Industrial Symbiosis Service can introduce you to a broad range of solutions and partners including businesses, social enterprises, charities, and other third sector organisations.

Examples of successful resource matching

Wasted materials which can be successfully matched come from a variety of sources and processes. Here are some recent examples of different types of resource matching which have been successfully supported by Invest NI's Industrial Symbiosis Service:

Redundant raw materials

Problem: unopened bags of sodium chloride that no longer met production guidelines now surplus to requirements.

Solution: another industry sector can use that material for boiler water treatment.

Benefits: avoided disposal costs as a chemical waste, accessed a cheaper source of new product for boiler water treatment processes.

Improving operating costs and productivity

Problem: pulverising blades costing a manufacturer significant downtime and sharpening costs.

Solutions: introduced to a local company that applied their design and special purpose machine skills and production capacity to produce a machine to sharpen blades on site.

Benefits: reduced shipping and transportation costs, reduced production downtime, improved blade quality, improved product specification.

Waste packaging

Problem: over 100 hessian sacks a week destined for landfill accumulating at a coffee roasting company.

Solutions: used for set and stage decoration at music festivals and multi-use venues; environmentally friendly alternative for floating paths in vulnerable peaty ground in mountainous areas, beekeeping functions.

Benefits: improved land management and conservation work, cost savings on new materials for set and stage decoration, avoided landfill disposal.

Cross-sectoral resource matching

Problem: sole trader with niche production requirements needed to source sustainable and ethical materials to handcraft yoga bags.

Solution: PVC truck tarpaulins destined for landfill met the product specifications including colour, texture and durability.

Benefits: removed waste management costs, reuse of materials for new product development.

If you have a wasted resource, or a niche material need that could be fulfilled by other businesses' waste, contact the Invest NI Resource Matching service.
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How to match resources with other businesses

Find partner businesses to exchange wasted resources with and save money on waste disposal through resource matching.
Finding reuse and recycling solutions helps businesses reduce waste management producers, while helping potential users reduce raw material costs.

It also fosters the development of partnerships between businesses, and offers networking and collaborative opportunities to small firms.

A business improvement technique called resource matching or industrial symbiosis provides businesses with the opportunity to match an excess of any resource such as waste, transport, storage, skills, capacity, energy, with other businesses that could use that resource.

Invest Northern Ireland's Resource Matching service works directly with businesses of all sizes and from all sectors. Experienced industrial symbiosis practitioners provide advice, support and guidance to businesses on resource efficiency, legislation and waste management.

Resource Matching Workshops are a key element of the service and facilitate businesses in resource efficiency and industrial symbiosis.

The Resource Matching Service also partners with trade organisations and research organisations to bring innovative and specific solutions to businesses.

Resource matching activities can include:

advisory visits to review business production from raw material input to final product and wasted resources generated

quick win workshops

cross-sectoral networking

identification of potential matches between business participants

follow-up visits with businesses to progress synergies

referrals to other Invest NI support

Relevant businesses can receive details of available resources and activities through emails, phone calls, visits and referrals to Invest NI.

The Resource Matching service can introduce you to a broad range of solutions including social enterprises, charities, and other third sector organisations.
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Advantages and disadvantages of trading waste

Some of the benefits and drawbacks of using your waste as a potential commodity for other businesses to trade and use.
Before you get involved in a waste exchange programme you should be aware of certain key issues:

the type of waste you produce or the type of waste you can use

the waste exchange method and associated costs

legal and contractual responsibilities such as terms of payment, obligations, material specifications, legal compliance and duty of care

Finding waste streams with exchange potential is becoming easier with the development of web-based exchanges. These enable you to identify potential exchange partners.

To exchange waste legally and safely you must ensure that the business to which you sell your waste is licensed to receive it. You are responsible for the waste until the exchange partner receives it, and are therefore accountable throughout the handling and transport stages.

Finding reliable exchange partners and waste carrier services is a vital part of the waste exchange process.

It is important to have an official contract between yourself and the waste exchange partner, both for those supplying waste or those collecting waste from you.
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Introduction to waste management

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Can I sell waste resources from my business?

How to price your waste competitively to trade successfully with exchange partners and make money for your business.
Some wasted resources can retain enough value to allow your business to put a price on them. There are a number of factors which can determine if it's worth your while.

Pricing your wasted resources depends on its nature, quantity and quality, and the demand within the market. Setting a competitive price can help you can trade successfully with a number of partners.

You need to account for the administrative and logistical activities involved in trading your waste. These may include:

filling in paperwork

collecting and delivering materials

transporting and storing materials

reprocessing materials if necessary

In some cases, where the resource can be reused without additional processing, it may be more beneficial to donate the materials rather than set a price.

It is important to keep up to date with the current value of the waste materials with which you are dealing. This will help you to offer competitive prices, and to understand the commercial value of the waste you are buying and/or selling - find the latest market value of waste materials to both collectors and buyers of recyclable materials (registration required).
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The Environment Exchange

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Metrics and targets - Reporting climate-related financial disclosures

Climate-related financial disclosure reporting (TCFD)

In this guide:

How to report on climate risk in my business

Which businesses are required to report under TCFD and which businesses may benefit from voluntary climate risk reporting.
The Task Force on Climate-related Financial Disclosures (TCFD) focuses on integrating climate-related risks into business strategies. This approach enables investors and other stakeholders to evaluate climate-related risks and opportunities.

To achieve this objective, TCFD has a reporting framework with disclosure recommendations so companies can understand and report their climate-related risks to investors, lenders, and insurance underwriters. The TCFD framework considers both ‘physical’ and ‘transition’ risks like legal liability and insurance. The framework has recognition as the benchmark for businesses to use to identify, assess and report on climate-related impacts.

Who must report under TCFD?

Since April 2022, reporting climate-related risks and opportunities has been mandatory for large companies and financial institutions in the United Kingdom.

Climate-related financial disclosure reporting is mandatory for:

all companies currently required to produce a non-financial information statement annually, eg listed companies, banks and insurers with more than 500 employees

UK-based Alternative Investment Market (AIM) companies with 500 or more employees

limited liability partnerships (LLPs) with 500 or more employees and a turnover of more than £500 million

non-listed companies with 500 employees or with a turnover of more than £500 million

These compulsory climate reporting categories are expected to expand to include more businesses in coming years.

How TCFD can benefit SMEs

Although climate reporting is only mandatory for large businesses, small and medium-sized businesses (SMEs) may be asked to report on these issues as part of their larger supply chain.

SMEs can use TCFD reporting to show their value in the supply chain by demonstrating they have considered climate-related risks and opportunities. Following the TCFD framework is an opportunity for SMEs to show investors and lenders that they are measuring and monitoring their climate risk in a structured and consistent way.

What are the TCFD themes and main disclosures?

TCFD has a set of recommendations for reporting across four key areas, which are:

governance

strategy

risk management

metrics and targets

To help identify your current and potential future impact in these areas, alongside accessing guidance to plan business actions, Climate NI has developed four step-by-step checklists, which you can find in this guide.
Developed with

Climate NI

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Climate Change Resilience for businesses in Northern Ireland guide (PDF 1.4MB)

Climate Change Risk Register Tool for SMEs (XLSX 588K)

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Adapt your business to climate change

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Governance - Reporting climate-related financial disclosures

How to disclose the governance of your business around climate-related risks and opportunities in TCFD reporting.

What TCFD recommends on governance
Recommendation	Disclose the business’ governance around climate-related risks and opportunities.
Key aspects	Describe the board’s oversight of climate-related risks and opportunities.
Key aspects	Describe management's role in assessing and managing climate-related risks and opportunities.

Show all

1
Governance - Suggested actions
Consider how risks and opportunities are currently managed in your business by asking questions such as:

Has your business assigned climate-related responsibilities at management-level positions?

What processes are in place to inform management about climate-related issues and at what frequency?

How do the management team monitor climate-related issues?

Are climate-related issues considered when reviewing and guiding strategy, major plans of action, risk management policies, annual budgets, investments and business plans?

How does the board/management team monitor and oversee progress against goals and targets for addressing climate-related issues?

You can download the full guide on Climate Change Resilience for Businesses in Northern Ireland (PDF, 1.4MB).

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Strategy - Reporting climate-related financial disclosures

How to disclose the impacts of climate-related risks and opportunities on your operations, strategy, and financial planning in TCFD reporting.

What TCFD recommends on strategy
Recommendation	Disclose the actual and potential impacts of climate-related risks and opportunities on your business' strategy, and financial planning where such information is material.
Key aspects	Describe the climate-related risks and opportunities your business has identified over the short, medium, and long term.
	Describe the impact of climate-related risks and opportunities on your business' strategy, and financial planning.
	Describe the resilience of your business' strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.

Planning ahead where possible, rather than responding reactively, will help you to:

save your business money in the long term
give your business the best chance to continue to operate and meet customer orders, despite the weather
identify possible business opportunities, eg new products or services, reduced costs

Climate-related risks

TCFD divides climate-related risks into two main categories:

Transition risks (related to the transition to a low-carbon economy)
Current and emergent regulation	Policy developments that attempt to constrain actions that contribute to the adverse effects of climate change or policy developments that seek to promote adaptation to climate change.
Technology	Risks associated with technological improvements or innovations that support the transition to a low-carbon economic system.
Legal	Climate-related litigation claims.
Market	Shifts in supply and demand for certain commodities, products, and services.
Reputation	Risks tied to changing customer or community perceptions of a business' contribution to or detraction from the transition to a low-carbon economy.
Workforce	Is your business going to be able to find the right skills for its post-transition form, eg electric vehicle mechanics?
Financial market	Is your business prepared for your finances to be tied to green policies and/or to bear a higher interest rate if you do not meet green criteria?
Physical risks (related to the physical impacts of climate change)
Acute	Risks that are event-driven, including increased severity of extreme weather, eg flooding, heatwaves, storms.
Chronic	Longer-term shifts in climate patterns, eg sea-level rise.

Show all

Supply chain - Impacts and actions

Impacts

Risks
Flooding (high rainfall, coastal and river)	Flooding and landslips will disrupt transport for deliveries.
Extreme weather events (storms and intense cold)	Extreme weather events can cause disruption of supply chains due to: transport disruption impact on suppliers, eg flooding of premises changes in raw material price or availability
	Extreme weather events can cause disruption to utilities supply and distribution.
	Utilities such as energy distribution and drainage infrastructure are generally vulnerable to extreme weather events.
Opportunities
Competitive advantage for companies with flexibility built into delivery systems and supply chains or those undertaking business continuity planning.
Supplying local markets creates an opportunity for a marketing approach based on regional distinctiveness or reduced product miles.
Developing a diverse network of suppliers (especially local) can simplify access to supplies in bad weather, increasing your resilience.

Suggested actions

What would happen to your business if suppliers cannot get to you because of weather-related disruptions?
Have you considered what would happen if you cannot get your products/services to your customers or if your customers cannot get to you?
Have you considered alternative suppliers and/or increasing storage capacity to increase your ability to operate without deliveries?
Do you have any processes or products that are sensitive to changing temperature or climate conditions?
Have you considered the circumstances under which you might decide to scale back or suspend operations during weather-related disruptions?
Have you identified critical activities and the employees and inputs required to maintain them?

Finance/insurance - Impacts and actions

Impacts

Risks
Flooding and extreme weather events.	Flooding damage and other severe weather events could result in unplanned business costs.
	An increase in extreme weather events will see more insurance-related issues.
	Global climatic events could impact international investments or products sourced from overseas.
	Cost implications for retrofitting existing buildings or relocating to cope with climate impacts.
	Failure to climate-proof your business, eg product range, and premises, will increase the potential for legal action, increase insurance premiums and reduce confidence amongst investors.
	Taking no action to prevent the risks and impacts of climate change could cost the business more in the long term.
	Disruptions to supply chains can have significant negative financial impacts.
Opportunities
Proactive risk assessment and implementation lead to a decrease in potential risks and a reduction in liabilities.
Clients and customers attracted to businesses that can show they are resilient to climate change.
New insurance products and services that spread the risk of climate change.
Increasing resilience now can pay off many times over in the future.
More weather-related claims improve the efficiency per claim.

Suggested actions

When did you last check that you have the insurance you need?
Are you covered for floods and storm events?
What are your insurance limits? Check excess and coverage terms and conditions, watch for small print and under-insuring.
Does your policy cover the full value of your business?
Do you keep documents safe from weather impacts (and store copies off-site)?
Do you have business continuity cover if your business is interrupted?
Do you have a business continuity plan?
Have you considered the financial management implications of a severe weather event?

Products and services - Impacts and actions

Impacts

Risks
Flooding (high rainfall, coastal and river)	Increased heavy rainfall and flood risk will increase demand for products, services and expertise to support sustainable water resource management.
Flooding (high rainfall, coastal and river)	Negative impact on reputation if insurance becomes unavailable in areas of increasing risk, such as high-risk zones for flooding or subsidence.
High Temperatures and Drought	Existing buildings not well-adapted to new climate, especially in hot summer conditions, leading to reduced value of existing buildings if they are not future climate-proofed.
	Quality issues relating to climate, eg overheating of grain, and supermarkets demanding washed produce – which is very water intensive.
	Reduced occurrence of frost and snowfall may have business implications for those that rely on the winter season.
Extreme Weather Events (storms and intense cold)	Maintaining a supply to markets could become more challenging particularly for businesses that heavily rely on climate-sensitive supply chains.
Opportunities
New innovative products, or modifications to existing products, in response to a changing market.
Warmer conditions could see an increased demand for more parks and gardens and further extend the growing season with potential benefits for agriculture and forestry.
Advantages for those who are quick to respond to changing markets and lifestyles.
Increased business opportunities in some sectors because of an extended tourist season, warmer summers and longer growing seasons.

Suggested actions

Is your business product or service weather or climate-sensitive?
Have you put in place measures to increase your business' resilience?
Does your business have global markets or suppliers that could be affected by climate change in other countries?
Have you considered establishing alternative suppliers for critical goods and services?
How would it impact your customers if you could not provide your product or service?
Would it change your customers’ requirements?
To what extent do others depend on your business in the event of a severe weather event?
Have you considered the possibility of changes to your product, service, or channels of customer interaction during a prolonged severe weather event and plan for any appropriate changes?

Operations - Impacts and actions

Impacts

Risks
Flooding (high rainfall, coastal and river)	Flood or torrential rain conditions may cause difficulties accessing premises, land or sites.
High Temperatures and Drought	Hotter summers may impact IT equipment such as servers, on-site construction processes, food preparation and storage.
	Existing crops may no longer be viable in new climatic conditions.
	A warmer climate may cause pests and diseases to spread and new threats to become established limiting the potential for increased productivity in the agriculture and forestry sector.
	Water quantity and quality may be reduced in the summer months impacting on manufacturing processes relying on water.
Extreme Weather Events (storms and intense cold)	Extreme events can cause damage or disruption to some production processes.
Opportunities
A warming climate may improve the growing conditions of certain crops in Northern Ireland and increase the productivity for agriculture and forestry.
Warmer conditions and longer growing seasons will mean new species and varieties of plants.
Increase in the frequency and intensity of heavy rainfall events will present opportunities to develop expertise and technology in water management and drainage.
As the climate changes, there will be an increased need for skills and expertise designing well-adapted buildings and managing construction processes in response to climate change.
There will be opportunities to develop new farming and forestry practices that support increased resilience.

Suggested actions

Should your computers be unavailable, what processes would be affected, eg orders, payroll, contacts, and would your business still function?
Do you have documentation of all key processes/procedures?
Do you scan important physical documents and store the originals off-site?
Have you considered backup utilities – energy and water?
What arrangements are in place to ensure the availability of supplies in the event of a severe weather event?
Have you considered where you store your products, stock, and raw materials?
Does your business depend on water? If there was a drought would you be able to reduce your water usage while continue running your business?
Have you identified which equipment is potentially vulnerable to flooding, and which equipment your business could not operate without?
Have you considered the possibility of changes to your product, service, or channels of customer interaction during a prolonged severe weather event and planned for any changes?
Do you have a contact list of current and alternative suppliers?

Scenario planning - Impacts and actions

Impacts

Scenario
Indicator	2°C in 2100	4°C in 2100
Average Annual Temperature	+ 1.27°C	+ 2.5°C
Average Mean Rainfall	1.25% change	2.93% change

Suggested actions

Think about what impacts you are already seeing in your business and what areas are being affected by asking questions such as:

How might your governance procedures have to change between a 2°C and 4°C world?
How might your risk management processes have to change between a 2°C and 4°C world?
How might your supply chain, finance/insurance, products and services, and operations be impacted and what action can you take to reduce these risks?
How might these changes affect your transition risks?
What metrics and data, eg weather-related losses and supply disruption, are you already gathering which could help inform these decisions? Are there any priority data gaps?

You can download the full guide on Climate Change Resilience for Businesses in Northern Ireland (PDF, 1.4MB).

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Risk management - Reporting climate-related financial disclosures

How to disclose how your business identifies, assesses, and manages climate-related risks in TCFD reporting.

What TCFD recommends on risk management
Recommendation	Disclose how the business identifies, assesses, and manages climate-related risks.
Key aspects	Describe the business’s processes for identifying and assessing climate-related risks
	Describe the business’s processes for managing climate-related risks.
	Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the business’s overall risk management.

Show all

1
Risk management - Suggested actions
Organisations should describe their risk management processes for identifying and assessing climate-related risks. An important aspect of this description is how organisations determine the relative significance of climate-related risks in relations to other risks.

Describe your processes for managing climate-related risks, including how you make decisions to mitigate, transfer, accept or control those risks. In addition, organisations should describe their processes for prioritising climate-related risks, including how they are assessed, quantified and reviewed.

Organisations should consider providing the following details of their risk management process:

How frequently do you carry out climate risk assessments?

Time horizons covered (short, medium, and long-term)

Risk types considered
2

How do you manage these risks?

Businessess should disclose how their key transition and physical risks are being (or are planned to be) managed, and the time horizon for stages of management. You could add this to the Climate Risk Register Template in a new column or include it in an already established risk management tool or business continuity plan you use in your business.
3

Complete the Climate Risk Register Template

To help report on business climate change risks and opportunities, Climate NI has developed a Climate Risk Register Template.

Completing the risk register will help identify and prioritise the business risks and assist in meeting the reporting elements for the Strategy and Risk Management sections of TCFD reporting recommendations.

Download the Climate Change Risk Register template (XLSX, 531K).

You can download the full guide on Climate Change Resilience for Businesses in Northern Ireland (PDF, 1.4MB).

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Metrics and targets - Reporting climate-related financial disclosures

How to disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities in TCFD reporting.

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.

Show all

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.

You can download the full guide on Climate Change Resilience for Businesses in Northern Ireland (PDF, 1.4MB).

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Climate-related financial disclosure reporting (TCFD)

Adopting the TCFD reporting framework in our business – Phoenix Energy

How Phoenix Energy’s focus on TCFD reporting has helped the business to develop a realistic pathway to reach net zero.

Phoenix Energy, based in Belfast, owns and operates the largest natural gas distribution network in Northern Ireland, supplying energy to more than 370,000 properties and over 260,000 customers.
Gareth Wright, Director of Business Services, explains how Phoenix Energy implemented the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) into their business reporting.
Why TCFD matters to our business
“As a large business in the energy sector, we understand the significant impact our operations can have on climate change, and we take this responsibility seriously. We’ve consistently led by example in responsible business practices, demonstrated through our participation in the NI Environmental Benchmarking Survey, recognition as a Sector Leader by GRESB (a Global Sustainability Assessment), and our achievement of ISO 22458 for Consumer Vulnerability.”
“We voluntarily adopted the TCFD recommendations in 2020, publishing our first disclosures in June 2021. This decision was driven by our commitment to our Environmental, Social, and Governance (ESG) Strategy and our vision to be recognised for excellence as a world-leading energy utility.”
How we did it
“Our TCFD journey began by partnering with an external consultant. A collaborative gap analysis helped us identify critical steps. We then built the necessary foundation through climate change workshops, qualitative climate change scenario analysis, and the development of a climate-related Risks and Opportunities Register.”
“We deepened our understanding and resilience to climate change through climate change scenario analysis using long-term financial modelling. This challenging work delivered detailed outputs, providing crucial insights into the potential financial impacts of different climate change scenarios. Consequently, our TCFD reporting improved significantly, enabling us to develop a realistic yet challenging pathway towards net zero.”
“We integrate TCFD reporting into both our financial statements and our Responsible Business Report, aligning it seamlessly with our broader ESG Strategy. This unified approach reflects our commitment to leading climate action, driven by dedication rather than brand recognition, for the benefit of both our company and the communities we serve.”
The benefits of TCFD
“TCFD reporting has significantly enhanced our understanding of climate change and its potential impact on our business operations, enabling proactive planning and preparation. We’ve identified critical climate-related risks, including increased operating costs from extreme weather and potential network disruptions. Events like the 2023 flooding in Downpatrick highlight the tangible reality of these risks and reinforce the necessity of our proactive planning and robust response strategies.”
“TCFD reporting has enhanced climate-related intelligence across our leadership, operational, and technical teams, actively driving internal change and embedding climate considerations into decision-making at all levels. This approach strengthens our resilience and solidifies our position as a responsible business, fully prepared for future challenges.”
How TCFD prepares us for the future
“We've learned that continuous engagement and regular reviews are essential. Analysis cannot be a one-time task; it demands ongoing updates to remain relevant and accurate. Regularly re-running scenario analyses and reviewing risks ensures our findings align with the latest developments. Staying current with emerging guidance is also crucial for effectiveness and compliance.”
“Moving forward, we will continue to evolve our framework for ongoing reviews and explore new tools to enhance the efficiency of our analysis. This will streamline the process, ensuring we remain aligned with best practices and new developments.”

Case Study
Gareth Wright

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Read more about Metrics and targets - Reporting climate-related financial disclosures

Risk management - Reporting climate-related financial disclosures

Climate-related financial disclosure reporting (TCFD)

In this guide:

How to report on climate risk in my business

Which businesses are required to report under TCFD and which businesses may benefit from voluntary climate risk reporting.
The Task Force on Climate-related Financial Disclosures (TCFD) focuses on integrating climate-related risks into business strategies. This approach enables investors and other stakeholders to evaluate climate-related risks and opportunities.

To achieve this objective, TCFD has a reporting framework with disclosure recommendations so companies can understand and report their climate-related risks to investors, lenders, and insurance underwriters. The TCFD framework considers both ‘physical’ and ‘transition’ risks like legal liability and insurance. The framework has recognition as the benchmark for businesses to use to identify, assess and report on climate-related impacts.

Who must report under TCFD?

Since April 2022, reporting climate-related risks and opportunities has been mandatory for large companies and financial institutions in the United Kingdom.

Climate-related financial disclosure reporting is mandatory for:

all companies currently required to produce a non-financial information statement annually, eg listed companies, banks and insurers with more than 500 employees

UK-based Alternative Investment Market (AIM) companies with 500 or more employees

limited liability partnerships (LLPs) with 500 or more employees and a turnover of more than £500 million

non-listed companies with 500 employees or with a turnover of more than £500 million

These compulsory climate reporting categories are expected to expand to include more businesses in coming years.

How TCFD can benefit SMEs

Although climate reporting is only mandatory for large businesses, small and medium-sized businesses (SMEs) may be asked to report on these issues as part of their larger supply chain.

SMEs can use TCFD reporting to show their value in the supply chain by demonstrating they have considered climate-related risks and opportunities. Following the TCFD framework is an opportunity for SMEs to show investors and lenders that they are measuring and monitoring their climate risk in a structured and consistent way.

What are the TCFD themes and main disclosures?

TCFD has a set of recommendations for reporting across four key areas, which are:

governance

strategy

risk management

metrics and targets

To help identify your current and potential future impact in these areas, alongside accessing guidance to plan business actions, Climate NI has developed four step-by-step checklists, which you can find in this guide.
Developed with

Climate NI

Actions

Climate Change Resilience for businesses in Northern Ireland guide (PDF 1.4MB)

Climate Change Risk Register Tool for SMEs (XLSX 588K)

Also on this site

Adapt your business to climate change

How to become a net zero business

Business continuity and crisis management

Content category

Efficiency and environment
Source URL
/content/how-report-climate-risk-my-business

Links

Governance - Reporting climate-related financial disclosures

How to disclose the governance of your business around climate-related risks and opportunities in TCFD reporting.

What TCFD recommends on governance
Recommendation	Disclose the business’ governance around climate-related risks and opportunities.
Key aspects	Describe the board’s oversight of climate-related risks and opportunities.
Key aspects	Describe management's role in assessing and managing climate-related risks and opportunities.

Show all

1
Governance - Suggested actions
Consider how risks and opportunities are currently managed in your business by asking questions such as:

Has your business assigned climate-related responsibilities at management-level positions?

What processes are in place to inform management about climate-related issues and at what frequency?

How do the management team monitor climate-related issues?

Are climate-related issues considered when reviewing and guiding strategy, major plans of action, risk management policies, annual budgets, investments and business plans?

How does the board/management team monitor and oversee progress against goals and targets for addressing climate-related issues?

You can download the full guide on Climate Change Resilience for Businesses in Northern Ireland (PDF, 1.4MB).

Developed with

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Also on this site

Content category

Source URL

/content/governance-reporting-climate-related-financial-disclosures

Strategy - Reporting climate-related financial disclosures

How to disclose the impacts of climate-related risks and opportunities on your operations, strategy, and financial planning in TCFD reporting.

What TCFD recommends on strategy
Recommendation	Disclose the actual and potential impacts of climate-related risks and opportunities on your business' strategy, and financial planning where such information is material.
Key aspects	Describe the climate-related risks and opportunities your business has identified over the short, medium, and long term.
	Describe the impact of climate-related risks and opportunities on your business' strategy, and financial planning.
	Describe the resilience of your business' strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.

Planning ahead where possible, rather than responding reactively, will help you to:

save your business money in the long term
give your business the best chance to continue to operate and meet customer orders, despite the weather
identify possible business opportunities, eg new products or services, reduced costs

Climate-related risks

TCFD divides climate-related risks into two main categories:

Transition risks (related to the transition to a low-carbon economy)
Current and emergent regulation	Policy developments that attempt to constrain actions that contribute to the adverse effects of climate change or policy developments that seek to promote adaptation to climate change.
Technology	Risks associated with technological improvements or innovations that support the transition to a low-carbon economic system.
Legal	Climate-related litigation claims.
Market	Shifts in supply and demand for certain commodities, products, and services.
Reputation	Risks tied to changing customer or community perceptions of a business' contribution to or detraction from the transition to a low-carbon economy.
Workforce	Is your business going to be able to find the right skills for its post-transition form, eg electric vehicle mechanics?
Financial market	Is your business prepared for your finances to be tied to green policies and/or to bear a higher interest rate if you do not meet green criteria?
Physical risks (related to the physical impacts of climate change)
Acute	Risks that are event-driven, including increased severity of extreme weather, eg flooding, heatwaves, storms.
Chronic	Longer-term shifts in climate patterns, eg sea-level rise.

Show all

Supply chain - Impacts and actions

Impacts

Risks
Flooding (high rainfall, coastal and river)	Flooding and landslips will disrupt transport for deliveries.
Extreme weather events (storms and intense cold)	Extreme weather events can cause disruption of supply chains due to: transport disruption impact on suppliers, eg flooding of premises changes in raw material price or availability
	Extreme weather events can cause disruption to utilities supply and distribution.
	Utilities such as energy distribution and drainage infrastructure are generally vulnerable to extreme weather events.
Opportunities
Competitive advantage for companies with flexibility built into delivery systems and supply chains or those undertaking business continuity planning.
Supplying local markets creates an opportunity for a marketing approach based on regional distinctiveness or reduced product miles.
Developing a diverse network of suppliers (especially local) can simplify access to supplies in bad weather, increasing your resilience.

Suggested actions

What would happen to your business if suppliers cannot get to you because of weather-related disruptions?
Have you considered what would happen if you cannot get your products/services to your customers or if your customers cannot get to you?
Have you considered alternative suppliers and/or increasing storage capacity to increase your ability to operate without deliveries?
Do you have any processes or products that are sensitive to changing temperature or climate conditions?
Have you considered the circumstances under which you might decide to scale back or suspend operations during weather-related disruptions?
Have you identified critical activities and the employees and inputs required to maintain them?

Finance/insurance - Impacts and actions

Impacts

Risks
Flooding and extreme weather events.	Flooding damage and other severe weather events could result in unplanned business costs.
	An increase in extreme weather events will see more insurance-related issues.
	Global climatic events could impact international investments or products sourced from overseas.
	Cost implications for retrofitting existing buildings or relocating to cope with climate impacts.
	Failure to climate-proof your business, eg product range, and premises, will increase the potential for legal action, increase insurance premiums and reduce confidence amongst investors.
	Taking no action to prevent the risks and impacts of climate change could cost the business more in the long term.
	Disruptions to supply chains can have significant negative financial impacts.
Opportunities
Proactive risk assessment and implementation lead to a decrease in potential risks and a reduction in liabilities.
Clients and customers attracted to businesses that can show they are resilient to climate change.
New insurance products and services that spread the risk of climate change.
Increasing resilience now can pay off many times over in the future.
More weather-related claims improve the efficiency per claim.

Suggested actions

When did you last check that you have the insurance you need?
Are you covered for floods and storm events?
What are your insurance limits? Check excess and coverage terms and conditions, watch for small print and under-insuring.
Does your policy cover the full value of your business?
Do you keep documents safe from weather impacts (and store copies off-site)?
Do you have business continuity cover if your business is interrupted?
Do you have a business continuity plan?
Have you considered the financial management implications of a severe weather event?

Products and services - Impacts and actions

Impacts

Risks
Flooding (high rainfall, coastal and river)	Increased heavy rainfall and flood risk will increase demand for products, services and expertise to support sustainable water resource management.
Flooding (high rainfall, coastal and river)	Negative impact on reputation if insurance becomes unavailable in areas of increasing risk, such as high-risk zones for flooding or subsidence.
High Temperatures and Drought	Existing buildings not well-adapted to new climate, especially in hot summer conditions, leading to reduced value of existing buildings if they are not future climate-proofed.
	Quality issues relating to climate, eg overheating of grain, and supermarkets demanding washed produce – which is very water intensive.
	Reduced occurrence of frost and snowfall may have business implications for those that rely on the winter season.
Extreme Weather Events (storms and intense cold)	Maintaining a supply to markets could become more challenging particularly for businesses that heavily rely on climate-sensitive supply chains.
Opportunities
New innovative products, or modifications to existing products, in response to a changing market.
Warmer conditions could see an increased demand for more parks and gardens and further extend the growing season with potential benefits for agriculture and forestry.
Advantages for those who are quick to respond to changing markets and lifestyles.
Increased business opportunities in some sectors because of an extended tourist season, warmer summers and longer growing seasons.

Suggested actions

Is your business product or service weather or climate-sensitive?
Have you put in place measures to increase your business' resilience?
Does your business have global markets or suppliers that could be affected by climate change in other countries?
Have you considered establishing alternative suppliers for critical goods and services?
How would it impact your customers if you could not provide your product or service?
Would it change your customers’ requirements?
To what extent do others depend on your business in the event of a severe weather event?
Have you considered the possibility of changes to your product, service, or channels of customer interaction during a prolonged severe weather event and plan for any appropriate changes?

Operations - Impacts and actions

Impacts

Risks
Flooding (high rainfall, coastal and river)	Flood or torrential rain conditions may cause difficulties accessing premises, land or sites.
High Temperatures and Drought	Hotter summers may impact IT equipment such as servers, on-site construction processes, food preparation and storage.
	Existing crops may no longer be viable in new climatic conditions.
	A warmer climate may cause pests and diseases to spread and new threats to become established limiting the potential for increased productivity in the agriculture and forestry sector.
	Water quantity and quality may be reduced in the summer months impacting on manufacturing processes relying on water.
Extreme Weather Events (storms and intense cold)	Extreme events can cause damage or disruption to some production processes.
Opportunities
A warming climate may improve the growing conditions of certain crops in Northern Ireland and increase the productivity for agriculture and forestry.
Warmer conditions and longer growing seasons will mean new species and varieties of plants.
Increase in the frequency and intensity of heavy rainfall events will present opportunities to develop expertise and technology in water management and drainage.
As the climate changes, there will be an increased need for skills and expertise designing well-adapted buildings and managing construction processes in response to climate change.
There will be opportunities to develop new farming and forestry practices that support increased resilience.

Suggested actions

Should your computers be unavailable, what processes would be affected, eg orders, payroll, contacts, and would your business still function?
Do you have documentation of all key processes/procedures?
Do you scan important physical documents and store the originals off-site?
Have you considered backup utilities – energy and water?
What arrangements are in place to ensure the availability of supplies in the event of a severe weather event?
Have you considered where you store your products, stock, and raw materials?
Does your business depend on water? If there was a drought would you be able to reduce your water usage while continue running your business?
Have you identified which equipment is potentially vulnerable to flooding, and which equipment your business could not operate without?
Have you considered the possibility of changes to your product, service, or channels of customer interaction during a prolonged severe weather event and planned for any changes?
Do you have a contact list of current and alternative suppliers?

Scenario planning - Impacts and actions

Impacts

Scenario
Indicator	2°C in 2100	4°C in 2100
Average Annual Temperature	+ 1.27°C	+ 2.5°C
Average Mean Rainfall	1.25% change	2.93% change

Suggested actions

Think about what impacts you are already seeing in your business and what areas are being affected by asking questions such as:

How might your governance procedures have to change between a 2°C and 4°C world?
How might your risk management processes have to change between a 2°C and 4°C world?
How might your supply chain, finance/insurance, products and services, and operations be impacted and what action can you take to reduce these risks?
How might these changes affect your transition risks?
What metrics and data, eg weather-related losses and supply disruption, are you already gathering which could help inform these decisions? Are there any priority data gaps?

You can download the full guide on Climate Change Resilience for Businesses in Northern Ireland (PDF, 1.4MB).

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Risk management - Reporting climate-related financial disclosures

How to disclose how your business identifies, assesses, and manages climate-related risks in TCFD reporting.

What TCFD recommends on risk management
Recommendation	Disclose how the business identifies, assesses, and manages climate-related risks.
Key aspects	Describe the business’s processes for identifying and assessing climate-related risks
	Describe the business’s processes for managing climate-related risks.
	Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the business’s overall risk management.

Show all

1
Risk management - Suggested actions
Organisations should describe their risk management processes for identifying and assessing climate-related risks. An important aspect of this description is how organisations determine the relative significance of climate-related risks in relations to other risks.

Describe your processes for managing climate-related risks, including how you make decisions to mitigate, transfer, accept or control those risks. In addition, organisations should describe their processes for prioritising climate-related risks, including how they are assessed, quantified and reviewed.

Organisations should consider providing the following details of their risk management process:

How frequently do you carry out climate risk assessments?

Time horizons covered (short, medium, and long-term)

Risk types considered
2

How do you manage these risks?

Businessess should disclose how their key transition and physical risks are being (or are planned to be) managed, and the time horizon for stages of management. You could add this to the Climate Risk Register Template in a new column or include it in an already established risk management tool or business continuity plan you use in your business.
3

Complete the Climate Risk Register Template

To help report on business climate change risks and opportunities, Climate NI has developed a Climate Risk Register Template.

Completing the risk register will help identify and prioritise the business risks and assist in meeting the reporting elements for the Strategy and Risk Management sections of TCFD reporting recommendations.

Download the Climate Change Risk Register template (XLSX, 531K).

You can download the full guide on Climate Change Resilience for Businesses in Northern Ireland (PDF, 1.4MB).

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Metrics and targets - Reporting climate-related financial disclosures

How to disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities in TCFD reporting.

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.

Show all

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.

You can download the full guide on Climate Change Resilience for Businesses in Northern Ireland (PDF, 1.4MB).

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Climate-related financial disclosure reporting (TCFD)

Adopting the TCFD reporting framework in our business – Phoenix Energy

How Phoenix Energy’s focus on TCFD reporting has helped the business to develop a realistic pathway to reach net zero.

Phoenix Energy, based in Belfast, owns and operates the largest natural gas distribution network in Northern Ireland, supplying energy to more than 370,000 properties and over 260,000 customers.
Gareth Wright, Director of Business Services, explains how Phoenix Energy implemented the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) into their business reporting.
Why TCFD matters to our business
“As a large business in the energy sector, we understand the significant impact our operations can have on climate change, and we take this responsibility seriously. We’ve consistently led by example in responsible business practices, demonstrated through our participation in the NI Environmental Benchmarking Survey, recognition as a Sector Leader by GRESB (a Global Sustainability Assessment), and our achievement of ISO 22458 for Consumer Vulnerability.”
“We voluntarily adopted the TCFD recommendations in 2020, publishing our first disclosures in June 2021. This decision was driven by our commitment to our Environmental, Social, and Governance (ESG) Strategy and our vision to be recognised for excellence as a world-leading energy utility.”
How we did it
“Our TCFD journey began by partnering with an external consultant. A collaborative gap analysis helped us identify critical steps. We then built the necessary foundation through climate change workshops, qualitative climate change scenario analysis, and the development of a climate-related Risks and Opportunities Register.”
“We deepened our understanding and resilience to climate change through climate change scenario analysis using long-term financial modelling. This challenging work delivered detailed outputs, providing crucial insights into the potential financial impacts of different climate change scenarios. Consequently, our TCFD reporting improved significantly, enabling us to develop a realistic yet challenging pathway towards net zero.”
“We integrate TCFD reporting into both our financial statements and our Responsible Business Report, aligning it seamlessly with our broader ESG Strategy. This unified approach reflects our commitment to leading climate action, driven by dedication rather than brand recognition, for the benefit of both our company and the communities we serve.”
The benefits of TCFD
“TCFD reporting has significantly enhanced our understanding of climate change and its potential impact on our business operations, enabling proactive planning and preparation. We’ve identified critical climate-related risks, including increased operating costs from extreme weather and potential network disruptions. Events like the 2023 flooding in Downpatrick highlight the tangible reality of these risks and reinforce the necessity of our proactive planning and robust response strategies.”
“TCFD reporting has enhanced climate-related intelligence across our leadership, operational, and technical teams, actively driving internal change and embedding climate considerations into decision-making at all levels. This approach strengthens our resilience and solidifies our position as a responsible business, fully prepared for future challenges.”
How TCFD prepares us for the future
“We've learned that continuous engagement and regular reviews are essential. Analysis cannot be a one-time task; it demands ongoing updates to remain relevant and accurate. Regularly re-running scenario analyses and reviewing risks ensures our findings align with the latest developments. Staying current with emerging guidance is also crucial for effectiveness and compliance.”
“Moving forward, we will continue to evolve our framework for ongoing reviews and explore new tools to enhance the efficiency of our analysis. This will streamline the process, ensuring we remain aligned with best practices and new developments.”

Case Study
Gareth Wright

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Read more about Risk management - Reporting climate-related financial disclosures

Strategy - Reporting climate-related financial disclosures

Climate-related financial disclosure reporting (TCFD)

In this guide:

How to report on climate risk in my business

Which businesses are required to report under TCFD and which businesses may benefit from voluntary climate risk reporting.
The Task Force on Climate-related Financial Disclosures (TCFD) focuses on integrating climate-related risks into business strategies. This approach enables investors and other stakeholders to evaluate climate-related risks and opportunities.

To achieve this objective, TCFD has a reporting framework with disclosure recommendations so companies can understand and report their climate-related risks to investors, lenders, and insurance underwriters. The TCFD framework considers both ‘physical’ and ‘transition’ risks like legal liability and insurance. The framework has recognition as the benchmark for businesses to use to identify, assess and report on climate-related impacts.

Who must report under TCFD?

Since April 2022, reporting climate-related risks and opportunities has been mandatory for large companies and financial institutions in the United Kingdom.

Climate-related financial disclosure reporting is mandatory for:

all companies currently required to produce a non-financial information statement annually, eg listed companies, banks and insurers with more than 500 employees

UK-based Alternative Investment Market (AIM) companies with 500 or more employees

limited liability partnerships (LLPs) with 500 or more employees and a turnover of more than £500 million

non-listed companies with 500 employees or with a turnover of more than £500 million

These compulsory climate reporting categories are expected to expand to include more businesses in coming years.

How TCFD can benefit SMEs

Although climate reporting is only mandatory for large businesses, small and medium-sized businesses (SMEs) may be asked to report on these issues as part of their larger supply chain.

SMEs can use TCFD reporting to show their value in the supply chain by demonstrating they have considered climate-related risks and opportunities. Following the TCFD framework is an opportunity for SMEs to show investors and lenders that they are measuring and monitoring their climate risk in a structured and consistent way.

What are the TCFD themes and main disclosures?

TCFD has a set of recommendations for reporting across four key areas, which are:

governance

strategy

risk management

metrics and targets

To help identify your current and potential future impact in these areas, alongside accessing guidance to plan business actions, Climate NI has developed four step-by-step checklists, which you can find in this guide.
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Climate Change Resilience for businesses in Northern Ireland guide (PDF 1.4MB)

Climate Change Risk Register Tool for SMEs (XLSX 588K)

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Governance - Reporting climate-related financial disclosures

How to disclose the governance of your business around climate-related risks and opportunities in TCFD reporting.

What TCFD recommends on governance
Recommendation	Disclose the business’ governance around climate-related risks and opportunities.
Key aspects	Describe the board’s oversight of climate-related risks and opportunities.
Key aspects	Describe management's role in assessing and managing climate-related risks and opportunities.

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1
Governance - Suggested actions
Consider how risks and opportunities are currently managed in your business by asking questions such as:

Has your business assigned climate-related responsibilities at management-level positions?

What processes are in place to inform management about climate-related issues and at what frequency?

How do the management team monitor climate-related issues?

Are climate-related issues considered when reviewing and guiding strategy, major plans of action, risk management policies, annual budgets, investments and business plans?

How does the board/management team monitor and oversee progress against goals and targets for addressing climate-related issues?

You can download the full guide on Climate Change Resilience for Businesses in Northern Ireland (PDF, 1.4MB).

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Strategy - Reporting climate-related financial disclosures

How to disclose the impacts of climate-related risks and opportunities on your operations, strategy, and financial planning in TCFD reporting.

What TCFD recommends on strategy
Recommendation	Disclose the actual and potential impacts of climate-related risks and opportunities on your business' strategy, and financial planning where such information is material.
Key aspects	Describe the climate-related risks and opportunities your business has identified over the short, medium, and long term.
	Describe the impact of climate-related risks and opportunities on your business' strategy, and financial planning.
	Describe the resilience of your business' strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.

Planning ahead where possible, rather than responding reactively, will help you to:

save your business money in the long term
give your business the best chance to continue to operate and meet customer orders, despite the weather
identify possible business opportunities, eg new products or services, reduced costs

Climate-related risks

TCFD divides climate-related risks into two main categories:

Transition risks (related to the transition to a low-carbon economy)
Current and emergent regulation	Policy developments that attempt to constrain actions that contribute to the adverse effects of climate change or policy developments that seek to promote adaptation to climate change.
Technology	Risks associated with technological improvements or innovations that support the transition to a low-carbon economic system.
Legal	Climate-related litigation claims.
Market	Shifts in supply and demand for certain commodities, products, and services.
Reputation	Risks tied to changing customer or community perceptions of a business' contribution to or detraction from the transition to a low-carbon economy.
Workforce	Is your business going to be able to find the right skills for its post-transition form, eg electric vehicle mechanics?
Financial market	Is your business prepared for your finances to be tied to green policies and/or to bear a higher interest rate if you do not meet green criteria?
Physical risks (related to the physical impacts of climate change)
Acute	Risks that are event-driven, including increased severity of extreme weather, eg flooding, heatwaves, storms.
Chronic	Longer-term shifts in climate patterns, eg sea-level rise.

Show all

Supply chain - Impacts and actions

Impacts

Risks
Flooding (high rainfall, coastal and river)	Flooding and landslips will disrupt transport for deliveries.
Extreme weather events (storms and intense cold)	Extreme weather events can cause disruption of supply chains due to: transport disruption impact on suppliers, eg flooding of premises changes in raw material price or availability
	Extreme weather events can cause disruption to utilities supply and distribution.
	Utilities such as energy distribution and drainage infrastructure are generally vulnerable to extreme weather events.
Opportunities
Competitive advantage for companies with flexibility built into delivery systems and supply chains or those undertaking business continuity planning.
Supplying local markets creates an opportunity for a marketing approach based on regional distinctiveness or reduced product miles.
Developing a diverse network of suppliers (especially local) can simplify access to supplies in bad weather, increasing your resilience.

Suggested actions

What would happen to your business if suppliers cannot get to you because of weather-related disruptions?
Have you considered what would happen if you cannot get your products/services to your customers or if your customers cannot get to you?
Have you considered alternative suppliers and/or increasing storage capacity to increase your ability to operate without deliveries?
Do you have any processes or products that are sensitive to changing temperature or climate conditions?
Have you considered the circumstances under which you might decide to scale back or suspend operations during weather-related disruptions?
Have you identified critical activities and the employees and inputs required to maintain them?

Finance/insurance - Impacts and actions

Impacts

Risks
Flooding and extreme weather events.	Flooding damage and other severe weather events could result in unplanned business costs.
	An increase in extreme weather events will see more insurance-related issues.
	Global climatic events could impact international investments or products sourced from overseas.
	Cost implications for retrofitting existing buildings or relocating to cope with climate impacts.
	Failure to climate-proof your business, eg product range, and premises, will increase the potential for legal action, increase insurance premiums and reduce confidence amongst investors.
	Taking no action to prevent the risks and impacts of climate change could cost the business more in the long term.
	Disruptions to supply chains can have significant negative financial impacts.
Opportunities
Proactive risk assessment and implementation lead to a decrease in potential risks and a reduction in liabilities.
Clients and customers attracted to businesses that can show they are resilient to climate change.
New insurance products and services that spread the risk of climate change.
Increasing resilience now can pay off many times over in the future.
More weather-related claims improve the efficiency per claim.

Suggested actions

When did you last check that you have the insurance you need?
Are you covered for floods and storm events?
What are your insurance limits? Check excess and coverage terms and conditions, watch for small print and under-insuring.
Does your policy cover the full value of your business?
Do you keep documents safe from weather impacts (and store copies off-site)?
Do you have business continuity cover if your business is interrupted?
Do you have a business continuity plan?
Have you considered the financial management implications of a severe weather event?

Products and services - Impacts and actions

Impacts

Risks
Flooding (high rainfall, coastal and river)	Increased heavy rainfall and flood risk will increase demand for products, services and expertise to support sustainable water resource management.
Flooding (high rainfall, coastal and river)	Negative impact on reputation if insurance becomes unavailable in areas of increasing risk, such as high-risk zones for flooding or subsidence.
High Temperatures and Drought	Existing buildings not well-adapted to new climate, especially in hot summer conditions, leading to reduced value of existing buildings if they are not future climate-proofed.
	Quality issues relating to climate, eg overheating of grain, and supermarkets demanding washed produce – which is very water intensive.
	Reduced occurrence of frost and snowfall may have business implications for those that rely on the winter season.
Extreme Weather Events (storms and intense cold)	Maintaining a supply to markets could become more challenging particularly for businesses that heavily rely on climate-sensitive supply chains.
Opportunities
New innovative products, or modifications to existing products, in response to a changing market.
Warmer conditions could see an increased demand for more parks and gardens and further extend the growing season with potential benefits for agriculture and forestry.
Advantages for those who are quick to respond to changing markets and lifestyles.
Increased business opportunities in some sectors because of an extended tourist season, warmer summers and longer growing seasons.

Suggested actions

Is your business product or service weather or climate-sensitive?
Have you put in place measures to increase your business' resilience?
Does your business have global markets or suppliers that could be affected by climate change in other countries?
Have you considered establishing alternative suppliers for critical goods and services?
How would it impact your customers if you could not provide your product or service?
Would it change your customers’ requirements?
To what extent do others depend on your business in the event of a severe weather event?
Have you considered the possibility of changes to your product, service, or channels of customer interaction during a prolonged severe weather event and plan for any appropriate changes?

Operations - Impacts and actions

Impacts

Risks
Flooding (high rainfall, coastal and river)	Flood or torrential rain conditions may cause difficulties accessing premises, land or sites.
High Temperatures and Drought	Hotter summers may impact IT equipment such as servers, on-site construction processes, food preparation and storage.
	Existing crops may no longer be viable in new climatic conditions.
	A warmer climate may cause pests and diseases to spread and new threats to become established limiting the potential for increased productivity in the agriculture and forestry sector.
	Water quantity and quality may be reduced in the summer months impacting on manufacturing processes relying on water.
Extreme Weather Events (storms and intense cold)	Extreme events can cause damage or disruption to some production processes.
Opportunities
A warming climate may improve the growing conditions of certain crops in Northern Ireland and increase the productivity for agriculture and forestry.
Warmer conditions and longer growing seasons will mean new species and varieties of plants.
Increase in the frequency and intensity of heavy rainfall events will present opportunities to develop expertise and technology in water management and drainage.
As the climate changes, there will be an increased need for skills and expertise designing well-adapted buildings and managing construction processes in response to climate change.
There will be opportunities to develop new farming and forestry practices that support increased resilience.

Suggested actions

Should your computers be unavailable, what processes would be affected, eg orders, payroll, contacts, and would your business still function?
Do you have documentation of all key processes/procedures?
Do you scan important physical documents and store the originals off-site?
Have you considered backup utilities – energy and water?
What arrangements are in place to ensure the availability of supplies in the event of a severe weather event?
Have you considered where you store your products, stock, and raw materials?
Does your business depend on water? If there was a drought would you be able to reduce your water usage while continue running your business?
Have you identified which equipment is potentially vulnerable to flooding, and which equipment your business could not operate without?
Have you considered the possibility of changes to your product, service, or channels of customer interaction during a prolonged severe weather event and planned for any changes?
Do you have a contact list of current and alternative suppliers?

Scenario planning - Impacts and actions

Impacts

Scenario
Indicator	2°C in 2100	4°C in 2100
Average Annual Temperature	+ 1.27°C	+ 2.5°C
Average Mean Rainfall	1.25% change	2.93% change

Suggested actions

Think about what impacts you are already seeing in your business and what areas are being affected by asking questions such as:

How might your governance procedures have to change between a 2°C and 4°C world?
How might your risk management processes have to change between a 2°C and 4°C world?
How might your supply chain, finance/insurance, products and services, and operations be impacted and what action can you take to reduce these risks?
How might these changes affect your transition risks?
What metrics and data, eg weather-related losses and supply disruption, are you already gathering which could help inform these decisions? Are there any priority data gaps?

You can download the full guide on Climate Change Resilience for Businesses in Northern Ireland (PDF, 1.4MB).

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Risk management - Reporting climate-related financial disclosures

How to disclose how your business identifies, assesses, and manages climate-related risks in TCFD reporting.

What TCFD recommends on risk management
Recommendation	Disclose how the business identifies, assesses, and manages climate-related risks.
Key aspects	Describe the business’s processes for identifying and assessing climate-related risks
	Describe the business’s processes for managing climate-related risks.
	Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the business’s overall risk management.

Show all

1
Risk management - Suggested actions
Organisations should describe their risk management processes for identifying and assessing climate-related risks. An important aspect of this description is how organisations determine the relative significance of climate-related risks in relations to other risks.

Describe your processes for managing climate-related risks, including how you make decisions to mitigate, transfer, accept or control those risks. In addition, organisations should describe their processes for prioritising climate-related risks, including how they are assessed, quantified and reviewed.

Organisations should consider providing the following details of their risk management process:

How frequently do you carry out climate risk assessments?

Time horizons covered (short, medium, and long-term)

Risk types considered
2

How do you manage these risks?

Businessess should disclose how their key transition and physical risks are being (or are planned to be) managed, and the time horizon for stages of management. You could add this to the Climate Risk Register Template in a new column or include it in an already established risk management tool or business continuity plan you use in your business.
3

Complete the Climate Risk Register Template

To help report on business climate change risks and opportunities, Climate NI has developed a Climate Risk Register Template.

Completing the risk register will help identify and prioritise the business risks and assist in meeting the reporting elements for the Strategy and Risk Management sections of TCFD reporting recommendations.

Download the Climate Change Risk Register template (XLSX, 531K).

You can download the full guide on Climate Change Resilience for Businesses in Northern Ireland (PDF, 1.4MB).

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Metrics and targets - Reporting climate-related financial disclosures

How to disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities in TCFD reporting.

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.

Show all

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.

You can download the full guide on Climate Change Resilience for Businesses in Northern Ireland (PDF, 1.4MB).

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