Frequently Asked Questions on TCFD Reporting

•What is TCFD reporting and why is it important?

TCFD (Task Force on Climate-related Financial Disclosures) reporting is a framework developed to help companies disclose climate-related financial risks and opportunities to investors, lenders, and other stakeholders. Its importance lies in promoting transparency and providing comprehensive information on how climate change impacts an organization's financial health, enabling better-informed decisions and encouraging climate-conscious investment.

•What are the four key areas of focus within the TCFD framework? The TCFD framework focuses on four key areas: Governance (how an organization's governance structure handles climate-related issues), Strategy (the impact of climate-related risks and opportunities on the business model, strategy, and financial planning), Risk Management (the processes used to identify, assess, and manage climate-related risks), and Metrics & Targets (the metrics and targets used to assess and manage relevant climate-related risks and opportunities).

•Who is required to comply with TCFD reporting in Australia, and when are the deadlines? In Australia, entities required to report under Chapter 2M of the Corporations Act will be phased into TCFD reporting based on certain criteria. Group 1 entities, those meeting two of three thresholds (over 500 employees, over $1 billion in consolidated gross assets, or over $500 million in consolidated revenue) or that are a 'controlling corporation' under the NGER Act and meet the NGER publication threshold, must begin reporting from 1 January 2025. Group 2 entities (over 250 employees, over $500 million in consolidated gross assets, or over $200 million in consolidated revenue, OR entities required to report under Chapter 2M of the Corporations Act that are a 'controlling corporation' under the NGER Act and meet the NGER publication threshold.) must begin reporting from 1 July 2026. Group 3 entities (over 100 employees, over $25 million in consolidated gross assets, or over $50 million in consolidated revenue, OR entities required to report under Chapter 2M of the Corporations Act that are a 'controlling corporation' under the NGER Act) must begin reporting from 1 July 2027.

•What are the main requirements for TCFD reporting? Companies must integrate climate-related risks into their governance and strategy, develop a systematic risk management approach for identifying and mitigating these risks, and disclose relevant metrics and targets, including greenhouse gas emissions, energy usage, and reduction targets.

•What are the benefits of adopting TCFD reporting beyond regulatory compliance? Beyond compliance, TCFD reporting enhances transparency, improves risk management by identifying and mitigating climate-related vulnerabilities, can improve access to capital by making a company more attractive to investors focused on sustainability, and creates a competitive advantage by demonstrating a commitment to long-term resilience.

•How can a company like Termina support businesses with TCFD reporting? Companies like Termina can help automate emissions reporting, streamlining data collection and eliminating manual data entry errors. They also offer automated energy management tools to optimize energy use, reduce costs, and ensure compliance with TCFD guidelines. Furthermore, they provide comprehensive support and expertise throughout the entire reporting process.

•What are the primary challenges faced by Australian businesses managing energy across multiple sites?

Managing energy across multiple sites in Australia presents several challenges. These include dealing with diverse energy suppliers, navigating varying rates and tariffs, keeping track of invoices from different sources, ensuring accurate billing, understanding equipment energy costs, and staying compliant with emissions reporting requirements. These complexities often lead to energy management taking a backseat, potentially resulting in higher costs and inefficiencies.

•How does Termina help multisite businesses reduce their energy costs?

Termina helps multisite businesses reduce energy costs through several strategies: by negotiating the best rates with all energy suppliers, validating every bill to prevent overcharges, monitoring energy contracts monthly to ensure businesses always benefit from the lowest available rates, providing detailed insights into equipment energy costs without extra hardware, and simulating energy upgrades for better ROI. Termina is paid only when it saves the client money.

•How does Termina simplify invoicing and emissions reporting for multisite businesses?

Termina simplifies invoicing by consolidating invoices from various suppliers into a single, easy-to-understand format. For emissions reporting, Termina provides clear and comprehensive reports, making it easier for businesses to track their emissions and comply with relevant regulations.

•What is energy bill validation and how does Termina ensure its accuracy?

Energy bill validation involves scrutinizing energy bills for errors and discrepancies to ensure businesses are only paying the correct amount. Termina's automated systems are used to catch billing errors and discrepancies, and the company handles disputes with suppliers on behalf of its clients to resolve any issues.

•How does Termina provide insights into equipment energy costs without requiring additional hardware?

Termina offers detailed insights into equipment energy costs by leveraging existing data and advanced analytics, eliminating the need for businesses to invest in and install extra hardware. This helps businesses track expenses, stay on budget, and identify opportunities for savings related to equipment energy usage.

•How does Termina assist businesses in evaluating the potential benefits of energy upgrades or electrification projects?

Termina can simulate the impact of energy upgrades or electrification projects, helping businesses understand the potential return on investment (ROI) before committing to these initiatives. This enables them to prioritize the most cost-effective and environmentally friendly options.

•What was the outcome of Termina's collaboration with the Pharmacy Collective?

Termina's collaboration with the Pharmacy Collective resulted in significant cost savings, amounting to over 15.7% on their annual energy costs. This was achieved through analyzing their energy usage and negotiating new contracts. Termina continues to review their energy contracts monthly to ensure they're always benefiting from the lowest rates available in the market. In addition, Termina handles all aspects of their energy needs, including billing accuracy and reporting usage anomalies.

FAQ

How does Termina help businesses compare electricity prices?

Termina simplifies business electricity price comparisons by analyzing energy usage patterns, sourcing quotes from multiple providers using group buying power and industry relationships, employing advanced comparison tools to account for price, fees, contract length, and tariff options, and offering ongoing monitoring and automatic switching to better deals. Termina also offers tailored solutions and expert support to ensure that each business gets the best plan for its needs.

What factors does Termina consider when finding the best electricity rates for my business?

Termina considers a business's location, energy usage patterns (when and how electricity is used), tariff configurations, and unique circumstances to recommend tailored solutions. This includes understanding equipment costs and the potential for electrification. Termina also factors in hidden fees, contract length, and tariff options when making comparisons.

What is the difference between fixed and variable electricity rates, and how do I choose the best option for my business?

Fixed-rate plans offer price stability for a set period, ideal for businesses prioritizing predictable costs. Variable-rate plans fluctuate with market conditions, potentially offering savings when prices fall but also carrying the risk of unexpected increases. The best option depends on a business's risk tolerance, cash flow needs, and ability to manage price fluctuations. Termina analyzes specific circumstances to recommend the most suitable plan and reviews rates monthly.

What happens after Termina helps me sign an electricity contract?

Termina's service doesn't end after a contract is signed. Termina continuously monitors the market for better deals and automatically switches rates when beneficial, ensuring businesses are always on the best available deal.

Why is it important to regularly compare business electricity rates?

Energy costs can be a significant business expense, and prices fluctuate. Regularly comparing rates ensures businesses avoid overpaying and can capitalize on better deals as they become available. Termina's automatic switching further simplifies this process.

What are the benefits of using Termina compared to other energy brokers?

Termina offers a comprehensive approach that goes beyond simple rate comparisons. This includes analyzing energy usage, leveraging group buying power to access exclusive rates, providing transparent cost overviews, offering ongoing monitoring and automatic switching, and delivering tailored solutions with expert support.

Is there a one-size-fits-all solution for business electricity plans?

No, Termina emphasizes that there isn't a one-size-fits-all solution. Even businesses with similar usage profiles may require different plans due to factors like distribution network and tariff configuration. Termina provides tailored solutions based on individual circumstances.

How can I get started with Termina to find better electricity rates for my business?

Businesses can request a quote from Termina to begin the process. Termina's team will then analyze their needs and start the process of finding the best electricity rates for their business.