Climate & Carbon Reporting Initiatives

Introduction to the Task Force on Climate-related Financial Disclosures (TCFD)

The Task Force on Climate-related Financial Disclosures (TCFD) was established in 2015 by the Financial Stability Board (FSB) to develop a set of voluntary, consistent, and globally accepted recommendations for companies to disclose climate-related financial risks and opportunities.

The TCFD framework helps organizations provide transparent, decision-useful information to investors, lenders, insurers, and other stakeholders on how climate change impacts their financial health, strategy, and resilience.

The TCFD recommendations are structured around four key thematic areas:

  • 1. Governance – The organization’s governance around climate-related risks and opportunities
  • 2. Strategy – The actual and potential impacts of climate-related risks on the business model and strategy
  • 3. Risk Management – Processes used to identify, assess, and manage climate-related risks
  • 4. Metrics & Targets – Metrics and targets used to assess and manage relevant climate-related risks and opportunities

By aligning with the TCFD, organizations can:

  • Enhance transparency and accountability
  • Integrate climate considerations into mainstream financial reporting
  • Prepare for emerging regulatory requirements
  • Build trust with stakeholders and improve access to capital

Now widely supported by regulators, investors, and governments around the world, TCFD is a cornerstone of climate-related financial disclosure and a stepping stone toward climate-resilient business strategies.

Introduction to the Carbon Disclosure Project (CDP)

The Carbon Disclosure Project (CDP) is a global non-profit organization that runs the world’s leading environmental disclosure system. Founded in 2000, CDP supports companies, cities, states, and regions in measuring, managing, and transparently disclosing their environmental impacts—focusing on climate change, water security, and deforestation.

CDP provides a standardized platform for organizations to disclose data on:

  • Greenhouse gas (GHG) emissions and climate strategies
  • Water-related risks and management practices
  • Deforestation risks across supply chains

Thousands of companies and institutions worldwide report through CDP annually, making it one of the most comprehensive sources of self-reported environmental data globally. CDP data is used by investors, customers, and policymakers to assess environmental risks and sustainability performance.

By reporting through CDP, organizations can:

  • Benchmark and improve their environmental performance
  • Demonstrate transparency and accountability
  • Meet growing stakeholder and regulatory expectations
  • Align with global frameworks like TCFD, SBTi, and the UN SDGs

CDP empowers organizations to turn environmental risks into business opportunities while contributing to a low-carbon, sustainable future.

Introduction to the Science Based Targets initiative (SBTi)

The Science Based Targets initiative (SBTi) is a global collaboration that helps companies set greenhouse gas (GHG) emissions reduction targets in line with climate science and the goals of the Paris Agreement—to limit global warming to well below 2°C, and ideally to 1.5°C above pre-industrial levels..

Launched in 2015, the SBTi is a partnership between:

  • CDP (Carbon Disclosure Project)
  • United Nations Global Compact (UNGC)
  • World Resources Institute (WRI)
  • World Wide Fund for Nature (WWF)

The initiative provides companies with:

  • A clear pathway to reduce emissions across their value chains (Scope 1, 2, and 3)
  • Tools and guidance for target-setting aligned with climate science
  • Validation and public recognition of approved science-based targets
  • A credible framework to meet stakeholder, investor, and regulatory expectations

By committing to science-based targets, organizations demonstrate leadership in climate action, enhance resilience, unlock innovation, and align business growth with a net-zero future.

With hundreds of companies worldwide already on board, the SBTi is rapidly becoming the global standard for credible, science-driven climate commitments.

Introduction to the Greenhouse Gas (GHG) Protocol

The Greenhouse Gas (GHG) Protocol is the globally recognized standard for measuring, managing, and reporting greenhouse gas emissions. Developed through a partnership between the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), the GHG Protocol provides a comprehensive framework that enables organizations to understand and reduce their climate impact.

Widely used across sectors and regions, the GHG Protocol establishes:

  • Standardized accounting principles for calculating GHG emissions
  • Guidance for organizational and operational boundaries
  • Definitions for Scope 1, Scope 2, and Scope 3 emissions
  • Scope 1: Direct emissions from owned or controlled sources
  • Scope 2: Indirect emissions from purchased electricity, steam, heating, and cooling
  • Scope 3: All other indirect emissions across the value chain

The GHG Protocol serves as the foundation for many global climate initiatives and frameworks, including:

  • ISO 14064 standards
  • Science Based Targets initiative (SBTi)
  • Carbon Disclosure Project (CDP)
  • Task Force on Climate-related Financial Disclosures (TCFD)

By adopting the GHG Protocol, organizations gain a credible, consistent, and transparent method to track their emissions, identify reduction opportunities, and demonstrate their commitment to climate action and sustainability leadership.

Introduction to CBAM Certification – Carbon Border Adjustment Mechanism

The Carbon Border Adjustment Mechanism (CBAM) is a landmark climate policy introduced by the European Union (EU) to address carbon leakage and ensure a level playing field for industries committed to reducing greenhouse gas emissions. CBAM is designed to apply a carbon price on imports of certain carbon-intensive goods, aligning them with the EU’s internal carbon pricing under the EU Emissions Trading System (EU ETS).

CBAM Certification is a key compliance requirement under this mechanism. It ensures that non-EU manufacturers and importers accurately report the embedded carbon emissions in their products and, where applicable, purchase CBAM certificates to cover these emissions.

CBAM initially targets high-emission sectors such as:

  • Cement
  • Iron and steel
  • Aluminum
  • Fertilizers
  • Electricity
  • Hydrogen

The mechanism encourages exporters to the EU to adopt cleaner technologies, monitor and reduce emissions, and align with global climate objectives. It also incentivizes climate-friendly production methods across the global supply chain.

By obtaining CBAM Certification, companies can:

  • Ensure continued market access to the EU
  • Strengthen environmental transparency and compliance
  • Enhance sustainability credentials and global competitiveness
  • Align with global climate goals such as the Paris Agreement and UN SDG 13 – Climate Action