Introduction
Does your company comply with TCFD?
The Task Force on Climate-related Financial Disclosures (TCFD) recently published an extensive report, presenting a series of standards and goals that aim to help companies better understand and manage climate-related risks. The standards underscore the importance of climate resilience in contemporary business strategy, indicating a new era of responsibility and accountability in commercial sectors.
Meanwhile, EHAB developed a resilience framework that directly aligns with and enhances the implementation of TCFD standards. This tool is designed to provide companies in the construction industry with a straightforward and systematic way of managing climate-related risks, while also ensuring their operations remain robust in the face of changing climatic conditions.
"Disclosure of the resilience of companies’ strategies under different climate-related scenarios continues to have the lowest level of disclosure across the 11 recommended disclosures." - TCFD Report
EHAB's 6 Pillars
for Climate Resilience
The EHAB resilience framework consists of six fundamental components that encourage proactive management of climate-related risks:
1. Bid Analysis
EHAB's tools allow companies to run their bids through a climate-focused lens. This approach ensures that the potential climate-related impacts on project implementation and profitability are taken into account right from the start.
2. Climate Data Integration
EHAB's framework encourages the use of both climate and historical data. This data aids in identifying patterns and potential risks that could affect the project timeline and outcome.
3. Weather-Aware Planning
The framework helps companies plan with weather consciousness, acknowledging the inevitable effects of changing weather patterns on construction processes.
4. High-Quality Forecasts
Accurate, short-term weather forecasts are provided, enabling companies to adapt quickly to sudden changes and maintain operational efficiency.
5. Rebaselining Plan
Companies can rebaseline their plans with every significant change, ensuring risks are reevaluated, and resilience is maintained.
6. Climate Insurance Policy
EHAB recommends having a climate insurance policy in place. This crucial step helps mitigate financial risk resulting from unforeseen weather events or changing climatic conditions.
How the EHAB Framework Aligns with TCFD Standards
Several core TCFD standards resonate strongly with the principles of EHAB's resilience framework:
1. Climate-related Risk Identification and Assessment
EHAB's emphasis on integrating climate and historical data in assessing potential project risks echoes the TCFD's recommendation.
2. Integration into Risk Management Processes
EHAB's tools aid in the seamless integration of climate-related risks into a company's overall risk management process, as suggested by TCFD.
3. Consideration of Resilience under Different Climate Scenarios
TCFD suggests companies consider their resilience under various climate scenarios. EHAB enables this by providing short-term high-quality forecasts and facilitating rebaselining of plans based on these scenarios.
4. Disclosure of Climate-related Risks and Opportunities
EHAB's recommendation for a climate insurance policy and disclosure of risks aligns with TCFD's principle of disclosing climate-related risks and opportunities.
5. Governance and Leadership on Climate Issues
EHAB's resilience framework necessitates a committed leadership that takes climate-related issues seriously, which is an essential aspect of TCFD's standards.
6. Engagement with Stakeholders
The EHAB framework encourages companies to ensure every stakeholder understands and takes climate change seriously, reflecting TCFD's call for stakeholder engagement.
7. Report on Progress
Regular reporting of progress against climate-related goals is facilitated by the EHAB framework, aligning with TCFD's standards.
(Image: World Construction Network, 2020)
Conclusion
In conclusion, EHAB's resilience framework and the TCFD's standards together form a robust response to climate-related risks in the construction industry. By integrating these strategies, companies can fortify their resilience, make their operations more sustainable, and contribute significantly to a more climate-resilient world.
Ready to start your journey towards TCFD compliance but unsure where to begin?
Look no further! With EHAB's freemium option, you can commence your path towards climate resilience without spending a dime. EHAB makes TCFD standards compliance accessible and manageable, setting your business up for a climate-smart future. Don't wait – take action today and align your practices with global climate resilience standards. Start for free with EHAB now!
If you want to get started now, we offer a free tool for short term planning, you can sign up here.
(Image: McKinsey, 2023)