TCFD Implementation Considerations for Private Equity

Prepared for the BVCA and iCI (Initiative Climat International) by KPMG with support from across our membership, this guide will help private capital firms implement the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD).

Based on detailed input from a wide range of firms and other stakeholders (including the TCFD itself), the guide is a comprehensive tool that offers detailed practical suggestions on how different firms can use the TCFD recommendations in their climate reporting, either voluntarily or under FCA regulations.

The guide signposts practical tools that already exist, highlights how TCFD reporting can support firms’ understanding of climate risks and opportunities, and proposes a banded approach that reflects different firms’ different characteristics and priorities.

It is intended to support our members’ and the broader private capital industry’s critical role in the climate transition by helping firms navigate the specific challenges that TCFD reporting poses for private markets. Interviews and surveys conducted by KPMG with iCI and BVCA member firms identified the need for tailored guidance in three key areas in particular: scenario analysis, metrics and targets, and valuations. The guide therefore goes into more detail in these areas and illustrates how they can influence investment strategies and help firms assess their resilience to climate risks.

The guide is based on current guidance and practices, and we expect it to evolve as the market and regulations develop.

Please contact Tom Taylor for more information or to provide any feedback.