TCFD Alignment and Climate Risk Assessment

Project Overview

BBJ Group supported a leading power systems manufacturer in its initial alignment with the Task Force on Climate-Related Financial Disclosures (TCFD) framework in response to evolving climate disclosure requirements, including California Senate Bill 261. The engagement established a foundation for first-year TCFD-aligned reporting through development of a comprehensive Scope 1 and Scope 2 greenhouse gas (GHG) inventory, a preliminary climate transition risk assessment, and a preliminary physical climate risk assessment. Emissions were calculated using facility-level data, established methodologies, and recognized reference datasets, while transition and physical risks were evaluated using scenario-informed screening and publicly available hazard data.

Building on these analyses, BBJ Group prepared draft TCFD-aligned disclosures across governance, strategy, risk management, and metrics and targets. The approach integrated structured data collection, technical emissions quantification, and climate scenario analysis to identify potential risks and opportunities without formal materiality determinations. This foundational effort enabled the company to better understand its climate-related exposure, respond to emerging regulatory expectations, and establish a defensible baseline for ongoing climate risk management and future disclosure refinement.