Technological advances are a catalyst for social and economic development. It is widely known that technology has good things to offer. As much as these advances are essential for global development, they pose a danger of some sorts as far as the environment is concerned.
It is high time that business owners should pay attention to matters environment. As far as mitigating the effects of technology or human activities on the environment, you need to embrace a proactive approach. It might also be a key driver in attracting potential investors. Improving our TCFD disclosure was the key to attracting more investors to our business.
Why Is the TFCD Important?
The Force on Climate-related Financial Disclosures (TFCD) serves to provide recommendations on matters to do with climate-related financial implications in some sectors of the economy. Coupled with other market-driven analyses and recommendations, these studies are vital for investors who need to have a comprehensive outlook on opportunities and sustainability risks. That said, here are some reasons why TFCD reporting on climate change is essential.
Climate Risk is Often Associated with Financial Filings
Climate risks are now associated with financial risks and costs. For instance, you can have some business assets adversely affected by new regulations touching on climate change. Moreover, you can also have some business asserts affected by climate change risks such as flooding and desertification. Thus, having a TFCD report could help you get a fresher perspective on all manner of climate-related financial risks.
Investors Now Prefer Low Carbon Investments
If you are into a new venture and want to bring some investors on board, your company must be actively engaged in green technology. There will always be opportunities for companies that take a leadership role in green technologies. With the TFCD, it becomes a lot easy for you to identify companies or investment opportunities that abide by the Paris Agreement on climate change.
Environmental Reports Are Becoming Complex
Over the years, environmental questionnaires have become increasingly complex, with most developments coming from TFCD recommendations. In light of this, TFCD goes a long way in helping companies organize their environmental reporting practices to meet increasing disclosure demands.
You have every reason to embrace TCFD reports. With forces such as the governments, stock markets, and regulators driving the adoption of TFCD, policymakers and investors cannot afford to turn a blind eye on these new regulations.