Free training resources – Task Force on Climate-Related Financial Disclosures (TCFD) explained
Given recent developments in sustainability reporting, the importance of understanding existing sustainability reporting standards has increased.
In New Zealand, the Government has mandated the External Reporting Board (XRB) to develop a suite of sustainability standards as part of a climate-related disclosures framework, and guidance on environmental, social and governance (ESG) matters.
The XRB intends to issue the following:
- Aotearoa New Zealand Climate Standard 1: Climate-related Disclosures (NZ CS 1)
- Aotearoa New Zealand Climate Standard 2: Adoption of Climate-related Disclosures (NZ CS 2)
- Aotearoa New Zealand Climate-related Disclosures Concepts (NZ CRDC)
NZ CS 1 is the main disclosure standard and will be based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). NZ CS 2 will be an adoption standard to enable entities to begin their climate-related disclosure journey. NZ CRDC will be an authoritative notice containing key concepts, like materiality. We also intend to issue accompanying guidance.
The International Sustainability Board (ISSB) is also in the process of developing IFRS Sustainability Disclosure Standards which will incorporate many requirements of existing sustainability reporting standards, including recommendations from TCFD.
BDO has developed a free course which serves as an introduction to the TCFD’s recommendations, which are already required in some jurisdictions and will form the basis for the ISSB's climate standard as well as being incorporated into the XRBs sustainability standards. The course covers the following topics and has a ‘test your knowledge’ section at the end:
- IFRS Sustainability Disclosure Standards and TCFD Recommendations
- Background - History and Current Application of TCFD Worldwide
- Overview of TCFD Framework
- Pillar 1 - Governance
- Pillar 2 - Strategy
- Pillar 3 - Risk Management
- Pillar 4 - Metrics and Targets
Need assistance with your sustainability report?
While we are waiting for the XRB to finalise their suite of sustainability standards for New Zealand and the ISSB to issue globally consistent sustainability reporting standards, there are several sustainability reporting frameworks and exposure drafts organisations can use in the meantime to draft their sustainability reports. Please contact BDO’s Sustainability Team for assistance.
For more on the above, please contact your local BDO representative
This publication has been carefully prepared, but is general commentary only. This publication is not legal or financial advice and should not be relied upon as such. The information in this publication is subject to change at any time and therefore we give no assurance or warranty that the information is current when read. The publication cannot be relied upon to cover any specific situation and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact the BDO member firms in New Zealand to discuss these matters in the context of your particular circumstances.
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