Metrics Used to Assess Climate Risks and Opportunities
We help you disclose the metrics you use to assess climate related risks and opportunities, consistent with your strategy and risk management
What this element is and why it matters
TCFD Metrics and Targets Disclosure (a) asks your organisation to disclose the metrics you use to assess climate related risks and opportunities, kept consistent with your strategy processes in Pillar 2 and your risk management processes in Pillar 3. These metrics span greenhouse gas emissions, energy, water, waste, physical climate exposure, transition KPIs and capital deployment, and our team helps you select and define each one.
Individual significance for organisations
Disclosure MT a is the quantitative foundation of your whole TCFD report. Without rigorous metrics beneath them, the narrative pillars simply float without anchor.
Contribution to Climate Risk and TCFD and ISSB S2 Aligned Disclosure
The metrics in MT a feed the Scope 1, 2 and 3 emissions of MT b and the targets of MT c. They also provide the data layer for your ESG ratings, your SBTi validation and your ISSB and CSRD compliance.
What compliant execution looks like
How we implement this element
A focused six step methodology calibrated to deliver metrics used to assess climate risks and opportunities as a working capability rather than a documented compliance artefact.
Working from the TCFD 2021 updated guidance, we select metrics across the categories of GHG emissions, transition, physical exposure, climate related opportunities, capital deployment and internal carbon price.
Working from the TCFD industry specific guidance, we add the metrics that matter to your sector such as energy, water, waste and biodiversity.
For each metric we specify the data source, the frequency, the validation and the quality assurance and integrate it with your corporate ERP, EHS and sustainability systems.
We help you consider establishing an internal carbon price per TCFD guidance and integrate it with your capital decisions.
We engage an assurance provider per ISAE 3000 for sustainability and ISAE 3410 for GHG and help you progress from limited to reasonable assurance over time.
We author MT a to TCFD with the metric definitions, the methodology and the trends and align it with IFRS S2 and CSRD ESRS E1.
Element implementation flow chart
A decision gated workflow that shows the actual sequence of activities from initiation through steady state operation, with key decision points highlighted.
What we produce
- A climate metrics inventory with definitions
- A data collection workflow for each metric
- Disclosure MT a content to TCFD
- A mapping of the seven cross industry metric categories
- An internal carbon price methodology note
- A register of metric definitions and restatement controls
Where execution fails
- Metric selection that is inconsistent with your strategy and risk processes
- Industry specific supplemental metrics that get ignored
- External assurance never engaged, which diminishes investor trust
- Cross industry categories left incomplete with capital and carbon price omitted
Codes this element is built on
Explore related elements in this framework
Climate Risk and TCFD and ISSB S2 Aligned Disclosure full element index
Talk to us about implementing Metrics Used to Assess Climate Risks and Opportunities
We can scope this element implementation against your facility, regulatory context, and existing management system maturity, then integrate it with the other Climate Risk and TCFD and ISSB S2 Aligned Disclosure elements you already operate.