Introduction to the TCFD Toolkit
Climate change is a key material risk and opportunity in the markets in which British International Investment (BII) operates. At the same time, fund managers have a critical role to play in supporting the transition to low-carbon and climate-resilient economic pathways. We aim to support the fund managers in which we invest to better understand the climate-related financial risks and opportunities they might be facing, to help them factor these into their decision-making processes, investment and engagement strategies.
The Taskforce on Climate-related Financial Disclosures (TCFD) is a market-leading standard for the integration of climate-related risks and opportunities in the core elements of how financial and non-financial organisations operate and make decisions.
Although the TCFD has published guidance for asset managers, it does not consider the specific context of fund managers, particularly those in developing markets that are in the early stages of their journey in addressing climate change. Therefore, this TCFD Toolkit provides guidance and practical tools to address this gap. It includes a maturity matrix to help assess the level of maturity within a fund manager on climate change. Also, a range of stand-alone templates, step-by-step guidance notes and tools are included to help fund managers practically implement actions to embed climate change and in doing so to improve their level of climate change maturity over time.
This Toolkit is based on current guidance and practices, and we expect it to evolve as new requirements are brought into force and as the experience and capabilities of fund managers develops. As approaches to climate change vary, we have tailored the guide to assist the full spectrum of fund managers in developing markets, regardless of where they are on their climate journey.
The Toolkit’s structure mirrors the four pillars of TCFD: Governance, Strategy, Risk Management, and Metrics and Targets.
There are two tables that can help users to navigate the Toolkit.
- Table 1 below shows a high-level summary of each section and the related guidance notes, tools and templates that can be downloaded as individual documents.
- The resources section includes a table which includes guidance notes, tools and templates. Wherever feasible, the Toolkit and associated guidance notes, tools and templates are broken up for those starting out on their climate change journey and for those that are more advanced.
|Summary of Content
|Guidance notes, tools and Templates
|Introduction and background
|TCFD structure and core elements
|Metrics and Targets