TCFD Reporting Training
The TCFD (Task Force on Climate-related Financial Disclosures) is an organization established in 2015 by the Financial Stability Board (FSB) to develop a framework enabling companies, banks, and investors to voluntarily and consistently disclose financial risks and opportunities associated with climate change.
In 2015, the Financial Stability Board (FSB)—an international body that monitors and makes recommendations regarding the global financial system—observed the looming shadow of climate change. It brought with it the potential for storms that threatened not only the environment but also global economic stability. The FSB recognized a rising wave of risks—risks that were not fully understood and had not yet been factored into the financial calculations of many companies. On one hand, there was the tangible threat of *physical risks*: the frequency and intensity of natural disasters such as floods and storms were predicted to rise, potentially causing massive losses. On the other hand, *transition risks* also loomed. Policy shifts toward a low-carbon economy, changing consumer preferences, and leaps in green technology—while positive—brought uncertainty and could destabilize companies that were slow to adapt.
The FSB’s concern grew because these risks—whether physical or transitional—had the potential to trigger a domino effect that could shake the financial system. Losses in one sector could spill over into others, much like toppling dominoes. Furthermore, without transparent and standardized information on how companies managed these climate risks, financial markets were essentially playing a guessing game in the dark, a situation that could lead to asset mispricing and financial turmoil. The FSB realized that the world needed a clear compass to navigate this sea of risk. Thus, the Task Force on Climate-related Financial Disclosures (TCFD) was born. This task force was established with the mission of creating a uniform framework for reporting climate-related financial risks and opportunities. With the TCFD guidelines in place, it is hoped that companies worldwide will be better able to understand, measure, and transparently disclose climate-related risks, thereby enabling investors and other stakeholders to make more informed decisions and, ultimately, steering the world toward a more stable and sustainable economic transition. The TCFD serves as a beacon intended to illuminate the path amidst uncertainty, helping to safeguard global financial stability in the era of climate change.
The TCFD framework focuses on these four areas:
- Governance: Disclosure of the organization’s governance around climate-related risks and opportunities. This includes the roles of the board and management in assessing and managing such risks and opportunities.
- Strategy: Disclosure of the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning. This includes how the organization identifies, assesses, and responds to these risks and opportunities.
- Risk Management: Disclosure of the processes used by the organization to identify, assess, and manage climate-related risks. This includes how the organization integrates these risks into its overall risk management processes.
- Metrics and Targets: Disclosure of the metrics and targets used to assess and manage relevant climate-related risks and opportunities. This includes greenhouse gas (GHG) emissions metrics and targets related to emissions reductions or other aspects of climate change.
Why Is the TCFD Important, Especially in Indonesia?
As an archipelagic nation with an extensive coastline and rich biodiversity, Indonesia is highly vulnerable to the impacts of climate change. Floods, droughts, rising sea levels, and extreme weather events are occurring with increasing frequency, threatening infrastructure, disrupting supply chains, and affecting productivity across various industrial sectors.
Climate change also entails transition risks. While policy shifts toward a low-carbon economy, evolving consumer preferences for environmental sustainability, and the advancement of green technologies are positive developments, they present new challenges for companies that are slow to adapt.
Meanwhile, global awareness regarding the importance of sustainability is growing. Investors, consumers, and other stakeholders are increasingly factoring environmental, social, and governance (ESG) considerations into their decision-making processes. Companies capable of effectively and transparently managing climate risks will gain a competitive edge, build their reputations, and ensure long-term sustainability.
Join the training now!
Date: September 2–3, 2025
Time: 09:00–16:00
Fee: Rp 3,000,000