Solarcentury to shine spotlight on climate risk through TCFD adoption

Solar developer will adopt TCFD recommendations in bid to ‘speed-up the switch of capital’ towards clean technologies

One of the UK’s leading solar energy companies has signed up to key international climate risk disclosure guidelines, in a move designed to help investors shift capital into low carbon infrastructure.

Solarcentury announced late last week it is to follow the recommendations set out by the Financial Stability Board’s (FSB) Task Force on Climate-related Financial Disclosures (TCFD), which recently set out a package of guidelines designed to help companies, banks, and investors climate risk considerations in their decision making.

Solarcentury chief financial officer Neil Perry said effective disclosure of climate risk by companies – particularly energy companies – and their investors will “speed-up the much-needed switch of capital from the fuelling of climate change to the abatement of it”.

“We are thrilled to see a business initiative like the TCFD come to fruition,” he said. “As the taskforce emphasises, this is not a political exercise, but one designed by the market, for the market.”

The TCFD group was established by the G20’s Financial Stability Board at the landmark UN climate talks in Paris in 2015.

The aim of its recommendations is to help companies understand what financial markets expect from the disclosure of climate-related risks and encourage firms to align their disclosures with investors’ needs.

Companies are encouraged to report on a wide range of material risks relating climate change, including physical impacts, regulatory and policy chages, and disruption and new market opportunities resulting from emerging technologies.

Firms are also urged to undertake and publicly disclose scenario planning, whereby they explore how a range of different climate and decarbonisation scenarios would impact their business.

The BusinessGreen Leaders Briefing: Navigating the TCFD Maze takes place on the morning of 21st September. Details on securing your place are available here.

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