Task Force on Climate-related Financial Disclosures is driving the transition to Net Zero
Ahead of the discussion at REAP 2023 we asked Chris Brown, Senior Director for Sustainability at Asda, and a member of the Agri-TechE Stakeholder Group, about the Task Force on Climate-related Financial Disclosures (TCFD) legislation that has come into effect this year, and is driving the journey to Net Zero from the top of the supply chain.
Chris says: "2023 is the first mandatory reporting year for TCFD. This is still quite top level, and only obligatory for the largest companies, but the consensus is that it will tighten in the future and trickle down."
Asda, in line with other progressive companies, is signed up to Science-Based Targets Initiative (SBTi) a pathway to achieving its commitment to a key goal of the Paris Agreement – to limit global warming to 1.5°C above pre-industrial levels.
The targets aim to 'reduce greenhouse gas (GHG) emissions, helping prevent the worst impacts of climate change and future-proof business growth'.
Scope 3 emissions from food production require joined up approach
As part of this companies need to disclose their Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and the related risks. These 'scopes' are set out in the Greenhouse Gas Protocol. Essentially, Scope 1 are those direct emissions that are owned or controlled by a company, whereas Scope 2 and 3 indirect emissions are a consequence of the activities of the company but occur from sources not owned or controlled by it.
As most Scope 3 emissions in the supply chain originate from the production of raw materials, a united approach is required to techniques for measuring, monitoring and mitigating emissions at all stages.
We asked Chris how producers can prepare for this; he comments: "We are at the start of this journey and just working out what we need, but my expectation is that once government, or the EU, or one of the big brands, takes the initiative then things will happen very quickly."
This global move towards sustainability is evident from projects initiated by the speakers on the Supply Chain Panel at REAP, with reporting on their websites aligned to the requirements of TCFD.
Find out more about the TCFD at https://www.fsb-tcfd.org/