Trucost TFCD reporting tool
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</h1><h1>Trucost’s Carbon Pricing Tool allows companies to assess their exposure to evolving regional carbon pricing mechanisms, helping to create the business case for greener products and business models.</h1><h1></h1><h1>Environmental Finance 24 Aug 2017</h1><h1>Trucost launches TCFD reporting tool</h1><section class="taxonomy"><p><strong>Channels:</strong> <a class="tl-tag" href="https://www.environmental-finance.com/search/search-results.html?channels=Investors&key=tags">Investors</a></p><p><strong>Companies:</strong> <a class="tl-tag" href="https://www.environmental-finance.com/search/search-results.html?companies=TCFD&key=tags">TCFD</a>, <a class="tl-tag" href="https://www.environmental-finance.com/search/search-results.html?companies=S%26P&key=tags">S&P</a>, <a class="tl-tag" href="https://www.environmental-finance.com/search/search-results.html?companies=Trucost&key=tags">Trucost</a></p><p><strong>People:</strong> <a class="tl-tag" href="https://www.environmental-finance.com/search/search-results.html?people=Richard+Mattison&key=tags">Richard Mattison</a>, <a class="tl-tag" href="https://www.environmental-finance.com/search/search-results.html?people=Libby+Bernick&key=tags">Libby Bernick</a></p></section><section class="article-utils"><p class="article-date">15 August 2017</p> <div class="addthis_toolbox addthis_default_style addthis_32x32_style"><a title="Twitter" class="addthis_button_twitter at300b" href="https://www.environmental-finance.com/#"><svg title="Twitter" class="at-icon at-icon-twitter" viewbox="0 0 32 32" ns1:ns3="" ns2:ns2="" ns3:xmlns="" ns4:xmlns="" ns5:xmlns="" ns6:ns4="http://www.w3.org/1999/xlink" ns7:xmlns="" ns8:ns1="" alt="Twitter" xmlns="http://www.w3.org/2000/svg" xmlns:ns1="" xmlns:ns2="" xmlns:ns3="" xmlns:ns4="" xmlns:ns5="" xmlns:ns6="" xmlns:ns7="" xmlns:ns8=""><g><path fill-rule="evenodd" d="M 27.996 10.116 c -0.81 0.36 -1.68 0.602 -2.592 0.71 a 4.526 4.526 0 0 0 1.984 -2.496 a 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<a title="Add a comment" class="comment-icon" href="https://www.environmental-finance.com/content/news/s-and-p-trucost-launches-tcfd-reporting-tool.html#article-comments"> </a><a title="Print this page" class="print-icon" href="https://www.environmental-finance.com/content/news/s-and-p-trucost-launches-tcfd-reporting-tool.html?pf=print"> </a></div></div></section><p>A tool that helps companies report in line with the FSB’s Task Force on Climate-related Financial Disclosures (TCFD) recommendations has been launched by Trucost, part of S&P Dow Jones Indices.</p><p>The task force’s recommendations, <a href="https://www.environmental-finance.com/content/news/final-tcfd-recommendations-supported-by-investors-with-$25trn.html">published in June</a>, includes advice that companies <a href="https://www.environmental-finance.com/content/news/organisations-should-use-existing-climate-scenario-analysis-or-develop-their-own-says-tcfd.html">use a range of existing climate-related scenario analysis or develop their own</a> in order to assess the risks posed to their business by climate change.</p><p>The Trucost tool aims to help companies follow this advice. It provides a set of predefined scenarios against which companies can chart their exposure to carbon risk. Companies will also be able to compare their performance against competitors.</p><p>The ‘corporate carbon pricing tool’ combines a company’s greenhouse gas emissions and financial performance data with Trucost’s regional carbon pricing information to provide insights on carbon pricing risks until 2030.</p><p>The outcome is an assessment of the potential impact on the company’s operating margin from its exposure to carbon risk.</p><p>Trucost has created a global database across 139 countries of current carbon regulations, emissions trading schemes, fuel and other taxes, and potential future carbon pricing scenarios designed to achieve the goals of the Paris Agreement to limit global warming to 2°C or less. In Europe, this includes the EU’s emissions trading system.</p><p>The scenarios for climate change up to 2030 have been developed in line with the International Energy Agency’s 2°C pathway for CO<sub>2 </sub>emissions. The tool plots a company’s carbon emissions against the pathway and defines ‘high’, ‘medium’, and ‘low’ scenarios, which are, respectively, 2°C-aligned, 2°C-aligned ‘with some lag’, and a scenario that matches what countries have already committed to as part of the Nationally Determined Contributions.</p><p>Richard Mattison, chief executive of Trucost, said that although the TCFD’s recommendations are intended to allow flexibility in reporting, there is a requirement that companies’ disclosures be comparable, which is what Trucost’s tool allows for by charting companies’ disclosures against a number of common data points</p><p>Mattison added that although industry regulators could consider more prescriptive disclosure policy in the light of the TCFD report, he wants company managers to report “in a way they’re comfortable with.”</p><p>Mattison also suggested investors can use the tool to identify companies with high exposure to risk and avoid them.</p><p>The tool models the progressive closure of the spread between carbon prices today and in the future, considering science-based scenarios and climate change commitments, according to Trucost. It also contains competitor data, allowing companies to benchmark and compare financial risk exposures.</p><p>Libby Bernick, global head of corporate business at Trucost, said: “Companies are trying to make sense of the pace at which legislators in different countries, states and cities are implementing carbon regulations. Because these regulations could drive up the cost of fossil-fuel-based energy and carbon-intensive raw materials, increasing operating costs and reducing profit margins, companies need robust data and analytics to help inform financial decisions over investments in energy efficiency, low-carbon innovation and renewable energy.”</p><p>Environmental data and risk analysis company Trucost was bought last year by US company S&P Dow Jones Indices.</p><p><strong>Michael Hurley</strong></p>