Shifting the focus of sustainability accounting from impacts to risks and dependencies: researching the transformative potential of TCFD reporting

Abstract

Purpose

This paper problematizes TCFD (Task Force on Climate-related Financial Disclosures) reporting in a way that demonstrates areas where academic research can contribute towards realizing the transformative potential of this unique form of sustainability accounting in its early stages of development.

Design/methodology/approach

The paper proposes a number of research agendas for impactful interdisciplinary research into new forms of corporate reporting of sustainability risks, opportunities and dependencies.

Findings

There are several major challenges that both reporting corporations and investors need to address in realizing the potential of TCFD style risks, opportunities and dependencies reporting. Key among these is developing new practices of climate-related scenario analysis and reporting.

Practical implications

There is potential for many different academic research studies to provide solid evidence in helping improve the practical impact of TCFD style sustainability reporting. These impacts may assist in moving corporate policies and actions towards zero carbon.

Originality/value

This is the first agenda-setting paper that addresses the need for, and opportunities of, academic research into TCFD reporting and its potential to transform corporate accounting and reporting of sustainability.

Citation

O'Dwyer, B. and Unerman, J. (2020), "Shifting the focus of sustainability accounting from impacts to risks and dependencies: researching the transformative potential of TCFD reporting", Accounting, Auditing & Accountability Journal, Vol. 33 No. 5, pp. 1113-1141. https://doi.org/10.1108/AAAJ-02-2020-4445