TCFD recommendations have already been integrated into the CDP climate questionnaires, and companies that disclose to CDP will be expected to respond. These questions include new examinations of the resilience of an organization in different climate-related scenarios, including a “2 degrees Celsius or lower” scenario.
Recommendations to build resilience against the effects of climate change and resource scarcity:
- Embrace Active Energy Management (AEM). Align energy efficiency, sustainability and energy supply goals, data and strategies to increase collaboration across teams.
- Make sustainability core to business strategy and reduce global resource consumption by:
- Implementing efficiency measures and software to maximize and measure reductions in resource consumption.
- Committing to, and implementing, a carbon reduction target through the Science-Based Targets Initiative.
- Actively disclosing emissions and water consumption data to CDP.
- Setting an aggressive target for renewable energy purchasing, such as 100% renewable electricity, and using large-scale procurement to rapidly advance towards this goal.
- Integrating circular economy practices that reduce waste and maximize use of raw materials.
- Exploring distributed energy resources, such as battery storage, CHP and microgrids to increase power resiliency.
- Use a climate model like the one available from TCFD to identify potential business risks and increase transparency. Of note: TCFD recommendations are now incorporated in the credit scores of S&P Global Ratings.
- Watch changing legislation in global markets. For instance, France’s Article 173 climate-reporting law requires institutional investors and asset managers to disclose how their business strategies cover climate change.
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