Leverage joined the Task Force on Climate-related Financial Disclosures (TCFD) as a Supporter in 2022; We are committed to promoting the double carbon development of enterprises through our professional services and influence.

Leverage is one of the 69 companies of the TCFD working group in China, and one of the few Chinese companies that has passed the verification of the SBTi science-based carbon target initiative. We  released the carbon neutral roadmap action report in 2022. In the field of dual-carbon, we can not only provide enterprises with dual-carbon related training, but also provide carbon screening, carbon verification, carbon footprint, carbon neutral certification, SBTi scientific carbon goal setting, carbon neutral roadmap action report consultation and other services. We hope that through our professional team and services, we can help Chinese companies understand, familiarize themselves with and practice carbon peak and carbon neutral goals faster.

 

 

 

About TCFD

 

 

 

The Task Force on Climate-Related Financial Disclosure (TCFD) was established by the G20's Financial Stability Board in 2015, The objective of the Task Force is to agree on a consistent and voluntary set of climate-related financial disclosure recommendations to help investors understand the climate risks of relevant entities. Entities such as businesses, cities, and even nonprofits can use TCFD's recommendations to measure climate risk and report to their shareholders or stakeholders. 

At present, TCFD's climate change risk management disclosure guidelines have been highly valued and widely concerned by international financial market participants. As of July 2022, a total of 3,400 organizations and institutions in 95 countries and regions around the world have officially announced their support for TCFD. Among them, only 24 Chinese enterprises (including Taiwan and Hong Kong) belong to the business and professional services category. With the continuous advancement of the goal of "carbon peak and carbon neutrality" in various countries, the TCFD recommendation framework is increasingly becoming a precondition for formulating the information required for low-carbon economic transformation plans.

According to the "2021 TCFD Status Report", TCFD raised seven types of cross-industry indicators, including scope 1, 2, and 3 greenhouse gas emissions, to a level that is very important for financial impact assessment. It can be seen that a company's GHG disclosure capability is one of the key indicators to measure the company's environmental and climate information disclosure.

By publicly announcing their support for the TCFD and its recommendations, businesses show that they are taking action to build a more resilient financial system through climate-related disclosures. Supporters of TCFD span the public and private sectors, including governments, central banks, stock exchanges, credit rating agencies, financial organizations and private companies from various industries.

 

 

 

 

Proposed Framework of the TCFD

 

 

 

The TCFD suggested framework consists of the following four key elements: governance, strategy, risk management, indicators and objectives (as shown in the figure below). Due to the vague definition of each element in the TCFD framework, it is difficult for companies to accurately understand their specific disclosure requirements, making it difficult to apply the framework. At present, domestic enterprises have gradually realized the importance of climate information disclosure, and gradually began to disclose relevant information with reference to the TCFD framework. However, due to the difficulty of disclosure, the number of domestic disclosure companies is relatively small, and the quality of disclosure is not high, and most of the content is limited to a brief qualitative description of the risks and opportunities in the TCFD framework.

 

 

 

 

Metrics and Targets of TCFD

 

 

 

Directly confirm whether the management of the enterprise is in line with the relevant decision-making indicators of TCFD and investors, and supplement relevant specific projects and goals so that the enterprise can actively disclose the organization's assessment and management of climate-related risks, and formulate important indicators and goals.

（Climate-related Financial Disclosures Task Force Recommendations and Related Recommended Disclosures）

Leverage is a responsible third party supply chain management services firm, and is a member of the Certification Body of China Certification and Accreditation Administration (CNCA-R-2020-707), the Inspection and Certification Body of China National Accreditation Administration for Conformity Assessment (CNAS IB0605), and the LCA Full Life Cycle Green Management. It is also recognized by many international organizations, such as UNGC, UNEP, AWS, ILO, etc. It can provide customers with carbon verification, carbon screening, carbon neutral roadmap preparation, ISO management system certification, ISO37301 compliance management system training and certification, corporate social responsibility strategy consulting, ESG report preparation and verification, ESG strategic consulting and other related services, hoping it can help realize the sustainable development goals of enterprises.