Understanding the Bottlenecks in the Adoption of TCFD Recommendations by Indian Corporates

Undertaken By: KPMG ,    Recent Publication: 2020

A majority India’s greenhouse gas (GHG) emissions are directly or indirectly related to the corporate sector. Therefore, Indian businesses can play an important role in helping India achieve its Nationally Determined Contributions under the Paris Agreement. Increasingly, corporates in India are beginning to recognise and measure climate related outcomes. However, the methodologies being used, primarily to assess and disclose physical environmental risks related to their operations, are non-standardized.

TCFD (Task Force on Climate-related Financial Disclosures) recommendations – now widely recognized as the gold standard for global business sustainability reporting frameworks – provide standardised and comprehensive guidelines for corporate climate disclosures.

The reports under this initiative make a case for greater uptake of TCFD aligned frameworks by Indian corporates by underlining overlaps with the climate risk efforts that they are already undertaking. By understanding current practices, awareness levels, and bottlenecks, the ease and benefits of transitioning formally to TCFD compliant practices are highlighted further.