Top Tools for TCFD Stakeholder Reporting

Struggling with TCFD reporting? You're not alone. Only 4% of global companies fully adhered to TCFD guidelines in 2021. The challenge lies in managing complex data, aligning with frameworks, and meeting regulatory demands like the UK's ISSB requirements.

Here’s what you need to know:

• neoeco: A platform integrating financial and sustainability data, ensuring audit-ready accuracy and supporting frameworks like ISSB, CSRD, and TCFD.

• Engagement Tracker: Focuses on stakeholder communication, automating feedback collection and aligning it with TCFD governance and strategy requirements.

Quick Comparison

Choosing the right tool depends on whether you prioritise data integration (neoeco) or stakeholder engagement (Engagement Tracker). Both simplify compliance and improve reporting efficiency. Read on for details.

Key Features of Effective TCFD Reporting Tools

Choosing the right TCFD reporting tool can turn the challenge of compliance into an opportunity for better stakeholder communication. With structured reporting, integrated data, and scalable automation, these tools simplify the process while aligning with TCFD guidelines.

Alignment with TCFD Requirements

Good TCFD tools are built to address the framework’s four main areas: governance, strategy, risk management, and metrics and targets. They often include pre-designed templates, data validation features, and interactive dashboards to ensure disclosures are accurate and comparable. For instance, in 2018, the Carbon Disclosure Project (CDP) incorporated the TCFD framework into its disclosure questionnaires, making it easier for organisations to standardise their reporting and provide comparable data. These tools also help companies integrate TCFD disclosures into their existing sustainability or financial reporting workflows seamlessly.

Integration with Finance and Sustainability Data

Top-tier TCFD tools blend financial and sustainability data to offer a single, reliable view. They simplify the process of gathering climate-related data by pulling information from various sources - like sustainability databases, financial systems, and climate models - and storing it securely. This ensures data quality and consistency. Such integration reduces duplication of efforts, which is particularly helpful for UK organisations that need to manage multiple compliance requirements, such as aligning ISSB reporting with TCFD obligations (see ISSB reporting).

Automation and Scalability

AI-powered automation transforms manual, time-consuming reporting tasks into efficient, scalable processes. Advanced tools also enhance transparency with user-friendly data visualisation and reporting features. They can handle large datasets, support multiple reporting standards at once, and adapt to changing regulations, making them capable of growing alongside an organisation's needs. Additionally, these platforms often include compliance monitoring, automatically tracking regulatory updates and refreshing reporting templates as needed.

Top Tools for TCFD Stakeholder Reporting

The market is brimming with platforms designed to simplify TCFD reporting. Each tool offers distinct features, from seamless data integration to specialised stakeholder communication capabilities. Below, we explore two standout solutions that can streamline your TCFD reporting process by aligning financial data with climate disclosures.

neoeco: A Platform for Financially-Integrated Sustainability Management

neoeco takes a unique approach to TCFD reporting as a Financially-integrated Sustainability Management (FiSM) platform. Its standout feature is the FiS Ledger, which embeds over 90 ESG impact factors into financial transactions using double-entry accounting principles. This ensures audit-ready accuracy, a crucial element for TCFD disclosures.

With AI-powered automation, neoeco handles data capture, mapping, and reporting, removing the need for manual processes. It supports all TCFD thematic areas - governance, strategy, risk management, and metrics - while also aligning with frameworks like ISSB (IFRS S1 & S2), CSRD, and GHGP standards.

For UK organisations, neoeco offers Life Cycle Assessment (LCA) methodologies that deliver real-time insights, enabling robust scenario analysis. The platform integrates smoothly with popular accounting tools like Xero and QuickBooks, as well as ERP systems and energy meters.

neoeco operates on an annual licensing model, customised to suit an organisation's specific needs. Additional modular features are available, ensuring CFOs and sustainability teams pay only for what they require. For more on how neoeco supports ISSB reporting, visit their dedicated page.

Engagement Tracker: A Stakeholder Communication Solution

Engagement Tracker zeroes in on stakeholder communication, a key aspect of TCFD reporting. This tool is particularly effective for organisations that need to showcase how stakeholder feedback informs their climate strategies.

The platform excels at tracking and documenting stakeholder engagement, offering automated workflows to capture input from investors, regulators, and other key groups. This feedback can then be integrated into TCFD-compliant reporting templates, supporting governance recommendations that require transparency around board oversight of climate-related risks and opportunities.

For UK companies juggling multiple stakeholder groups, Engagement Tracker offers customisable communication templates aligned with TCFD disclosure requirements. It also automates the generation of engagement reports and tracks response rates, helping organisations demonstrate the depth of their stakeholder consultation processes.

Tool Comparison Table

This table highlights the distinct strengths of each tool. With only 4% of large global companies implementing all eleven TCFD recommendations in 2021, the need for comprehensive and targeted solutions is evident. neoeco is ideal for organisations prioritising data integration and financial alignment, while Engagement Tracker is better suited for those focusing on stakeholder engagement.

"This one-stop solution eliminates the need to source data from multiple owners", - Sonali Samani, Head of Environmental, Social and Governance at IWG

Samani's insight underscores the growing demand for integrated platforms that simplify the complexity of TCFD reporting, balancing quantitative metrics with qualitative strategic disclosures.

How to Choose the Right TCFD Reporting Tool

Selecting the right TCFD reporting tool isn’t just about ticking compliance boxes - it’s about finding a solution that fits seamlessly into your organisation's existing systems while meeting complex disclosure requirements. With 60% of organisations identifying the need for better data management and integration capabilities, this task becomes even more pressing for UK businesses navigating intricate regulatory landscapes. Let’s break down what to look for.

Compliance with UK and Global Standards

A good TCFD tool should go beyond basic functionality and offer native support for multiple frameworks, not just bolt-on modules that might fall short. UK companies, for instance, need to align with TCFD recommendations while also preparing for broader frameworks like ISSB (IFRS S1 & S2) and CSRD. A platform that integrates these standards natively will save time and reduce the risk of errors.

To ensure transparency and accountability, the tool should provide audit-ready documentation. Features like data lineage tracking, version control, and clear links between climate disclosures and business data are essential. For example, platforms like neoeco use double-entry accounting principles to embed ESG factors directly into financial transactions, making it easier to trace disclosures back to their source.

Additionally, the platform should cater to UK-specific requirements, such as timing and formatting, with minimal need for customisation.

Integration and Scalability

Once compliance is covered, the next priority is seamless integration with existing systems. ESG data often comes from diverse sources like finance, HR, operations, and external partners, so the platform must connect effortlessly with these systems to avoid creating data silos.

Look for tools with strong integration capabilities that work with your current infrastructure. This includes compatibility with ERP systems, accounting software like Xero, QuickBooks, and Sage, as well as HRIS platforms and sustainability databases. Effective integration ensures smooth data flow, reduces duplication, and allows organisations to leverage their existing systems for TCFD reporting.

Scalability is another critical factor. Ask whether the platform can handle increasing data volumes, support multiple subsidiaries, and adapt to expanding frameworks. As TCFD reporting evolves into a more strategic function, these capabilities will be crucial.

UK-Specific Features

For UK-based organisations, the tool must align with local practices. It should natively support £, metric units, and DD/MM/YYYY formats to ensure consistency with UK accounting standards.

Platforms that understand UK-specific business structures and accounting practices are invaluable. This includes support for Companies House filing requirements, UK GAAP or IFRS standards, and alignment with annual reports that follow UK corporate governance codes. Given that 42% of organisations report challenges with data quality, local support and training are also essential. Choose a provider that offers UK-based customer service, understands local regulatory timelines, and provides training tailored to UK terminology and practices.

The tool should also account for UK energy and carbon reporting requirements, such as the Streamlined Energy and Carbon Reporting (SECR) framework. Ideally, the platform will build on existing SECR data rather than requiring separate reporting processes.

Lastly, consider how well the tool addresses UK stakeholder expectations. British institutional investors and regulators often have specific preferences for presenting and quantifying climate risks. A platform that understands these nuances will help you communicate more effectively with stakeholders. For instance, tools that integrate Scope 3 emissions with financial reporting can provide a more comprehensive view of climate risks, which is increasingly important for UK businesses.

Conclusion: Improving TCFD Stakeholder Reporting Efficiency

In the UK, over 1,300 large companies and financial institutions are now required to comply with TCFD reporting standards, making it crucial to approach disclosure efficiently. The right reporting platform can turn this compliance requirement into an opportunity to strengthen organisational strategy.

As regulations continue to evolve, with Sustainability Disclosure Requirements (SDR) expected to surpass current TCFD guidelines, businesses need tools that can keep pace with these changes. The reporting solutions you choose today must be flexible enough to meet tomorrow’s demands, ensuring long-term compliance and adaptability.

Prioritising tools that integrate financial and climate metrics is a smart move. Organisations that embed TCFD reporting into a broader sustainability strategy are better equipped to navigate these changes. Platforms like neoeco illustrate how combining climate and financial reporting can elevate data quality, enhance visibility of climate risks, and align reporting with advancing standards. This integrated approach ensures that decision-makers across the organisation are well-informed and prepared for future challenges.

To maximise efficiency, choose a platform that simplifies compliance, improves communication with stakeholders, and delivers actionable insights for strategic planning. A robust tool should address multiple needs, ensuring that climate risk disclosure is thorough while helping businesses stay ahead of regulations, maintain transparency, and strengthen their sustainability practices.

Key considerations when selecting a platform include strong data security, seamless integration with existing systems, and proven expertise in TCFD compliance. The best tools will scale with your business, cater to industry-specific requirements, and meet the growing demand for transparency from UK stakeholders.

Ultimately, your choice of reporting tool will not only determine how smoothly you meet compliance requirements but also influence your organisation’s ability to attract investment, as climate risks become a critical factor in investor decision-making.

FAQs

What are the main differences between neoeco and Engagement Tracker for TCFD reporting, and how can I choose the right tool for my organisation?

neoeco is a financially-integrated sustainability management (FiSM) platform that brings together finance and sustainability data. It streamlines compliance with global frameworks like ISSB and CSRD by offering automated processes, real-time insights, and ESG disclosures that are ready for audits. On the other hand, Engagement Tracker focuses on stakeholder engagement, enabling organisations to monitor interactions and gather feedback, particularly for TCFD reporting.

The main difference between the two lies in their purpose: neoeco emphasises data integration and automation to simplify ESG compliance, while Engagement Tracker is tailored for stakeholder communication. If your organisation’s priority is automating TCFD disclosures with up-to-date, real-time data, neoeco might be the ideal choice. However, if your focus is on strengthening stakeholder engagement, Engagement Tracker would better meet your needs.

How do TCFD reporting tools work with existing financial and sustainability systems to enhance compliance and data management?

TCFD reporting tools work seamlessly with financial and sustainability systems by automating tasks like data collection, analysis, and reporting. They pull information from multiple sources, ensuring a steady flow of consistent and precise data. This not only cuts down on manual work but also boosts overall efficiency.

By linking climate-related disclosures with financial data, these tools simplify compliance with frameworks such as TCFD, ISSB, and CSRD. Additionally, they offer real-time insights, enabling organisations to smooth out their reporting processes and confidently meet regulatory demands.

What features should UK organisations prioritise in a TCFD reporting tool to meet local regulations and standards?

Choosing the Right TCFD Tools for UK Organisations

UK organisations need to focus on TCFD tools that align with local regulations, particularly the mandatory disclosure requirements for listed companies under FCA rules and the UK government's TCFD guidance. The tools should be capable of generating reports that meet UK-specific legal standards, support required non-financial disclosures, and integrate seamlessly with the country's regulatory frameworks.

Beyond compliance, these tools should promote greater transparency and accountability. Features like automated data integration, audit-ready outputs, and functionality to support informed decision-making can be incredibly useful for organisations navigating the UK's shifting sustainability landscape.

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