Arçelik is a Supporter of TCFD
As Arçelik, we place sustainability at the heart of our business processes and ensure it is integrated in our overall business strategy. One of our top priotiries is concentrating our efforts on combating the climate crisis and incorporating climate-related risk disclosures into our corporate reporting, as well as corporate risk management systems. Being one of the supporters of the Task Force on Climate-related Financial Disclosures (TCFD), our ambition is to further develop our business towards achieving a low carbon future and ensuring our business is resilient and adaptable for climate-related risks and opportunities.
In December 2015, the Financial Stability Board established the TCFD to address the effect of climate change on companies and the global financial system through disclosure. The Task Force examines the physical, liability and transition risks associated with climate change. It also looks at what constitutes as a succesful financial disclosure and acts as a valuable structure across industries.
The Task Force issues recommendations, which allow financial markets to better understand climate-related financial risks and opportunities. Voluntary TCFD guidelines include a framework in which companies can better define, manage and disclose climate-related risks and opportunities. This offers valuable knowledge for businesses, investors and other stakeholders. By supporting TCFD, we aim to strengthen the link between climate change and the resulting financial impacts on our business.
In support of the Paris Agreement’s goals to limit the global temperature increase to below 2°C, we publish our annual climate-related governance, risk management, strategy and targets in our sustainability reports; along with their impact on the financials.
To this end, we have incorporated ESG-related risk disclosures into our corporate reporting and risk management systems. In our most recent 2019 Sustainability Report we also disclosed the existing risks, strategies and opportunities across 7 major groups with a low-medium-high time horizon and financial impact. The Sustainability Council, chaired by our CFO, consists of Executive Management members, oversees the climate-related disclosures and obtains board involvement through quarterly reports.
We believe that the TCFD recommendations will further improve our reporting capabilities and act as a key mechanism to support the implementation of concrete measures; leading to investor interest around forward-looking ESG performance management.