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Navigating the changing landscape of climate-related financial disclosures can be challenging for many businesses. With increasing regulations and investor interest in sustainability, understanding frameworks like the Task Force on Climate-related Financial Disclosures (TCFD) is crucial.
As soon as 1 January 2026, Group 1 entities under Chapter 2M of the Corporations Act must begin mandatory climate reporting from their financial year. Group 2 entities will start reporting from 1 July 2026, and all other in-scope entities will be required to comply from 1 July 2027.
So, what exactly is TCFD reporting, and how can it benefit your business? In this blog, we will deep dive into TCFD reporting and how we make it easier for companies to meet these requirements and make sure their reporting is audit-grade. See the table below to see whether you qualify.
What is TCFD Reporting?
The TCFD was established by the Financial Stability Board (FSB) in 2015 to develop a consistent framework for companies to disclose climate-related financial risks and opportunities. The goal of TCFD reporting is to provide investors, lenders, and other stakeholders with clear and comprehensive information on how climate change impacts an organisation’s financial health. TCFD recommendations focus on four key areas:
- Governance: How an organisation’s government structure handles climate-related risks and opportunities.
- Strategy: The actual and potential impacts of climate-related risks and opportunities on the business model, strategy, and financial planning.
- Risk Management: The processes used to identify, assess, and manage climate-related risks.
- Metrics and Targets: The metrics and targets used to assess and manage relevant climate-related risks and opportunities.
What are the Requirements of TCFD Reporting?
TCFD reporting requires businesses to provide detailed information in the areas listed above. This involves assessing both current and future risks related to climate change and understanding how these risks can impact financial performance.
Companies must:
- Integrate Climate-related Risks into Governance and Strategy: Ensure that climate-related risks are considered at the highest levels of decision-making.
- Develop a Risk Management Approach: Establish a systematic approach to managing climate-related risks, from identification to mitigation.
- Disclose Metrics and Targets: Provide quantitative data on climate-related risks, including greenhouse gas emissions and energy use, as well as set targets for reduction. When you team up with Termina, we make it simple to track data and identify ways to reduce emissions.
What are the Benefits of TCFD Reporting?
Adopting TCFD reporting not only ensures compliance with emerging regulations but also offers several business benefits:
- Enhanced Transparency: TCFD reporting improves transparency, making it easier for investors and stakeholders to understand how climate-related risks impact financial performance. This also builds on a company’s public trust.
- Better Risk Management: By identifying and managing climate risks, businesses can reduce their vulnerability to future climate-related issues.
- Improved Access to Capital: Companies with clear and comprehensive climate disclosures are often preferred by investors, potentially leading to better access to capital and investment.
- Competitive Advantage: Businesses that proactively manage and disclose climate-related risks can gain a competitive edge, showcasing their commitment to sustainability and long-term resilience.
How Termina Supports Businesses with TCFD Reporting
At Termina, we understand that TCFD reporting can be complicated and time-consuming, especially for businesses managing multiple sites or large amounts of data. That's why we offer a comprehensive solution to simplify the process and ensure compliance.
Automated Emissions Reporting
Unlike traditional carbon reporting platforms that require manual uploads, Termina automates the entire energy emissions reporting process. This automation eliminates the need for manual data entry or bill upload and eliminates the risk of errors with our dedicated quality control team, making it easier and faster for businesses to make their reporting audit-grade for TCFD requirements.
Automated Energy Management
In addition to TCFD reporting, Termina offers tools to optimise energy use and reduce costs. Our platform continuously monitors energy consumption, identifying opportunities for greater efficiency and helping businesses lower their energy bills while remaining compliant with TCFD guidelines.
Traditionally, collecting energy data for reporting is slow and manual, with information scattered across emails, portals, and hard-to-find invoices. Termina streamlines this process by automating data collection across bills, meters, and equipment, consolidating all energy sources in one place. This enables you to track and report on energy use in minutes rather than weeks.
Comprehensive Support
At Termina, our team of experts is here to guide you through every step of mandatory climate-related disclosures. Our tailored services and continuous support ensure compliance and enhance energy management from initial onboarding to ongoing tracking of TCFD reporting.
By choosing Termina, you're not just meeting regulations, you're proactively managing climate-related risks and positioning your business for long-term success. Being proactive and preparing for TCFD reporting offers a chance to improve sustainability and resilience, turning climate action into cost-saving opportunities.
