National Grid plc – Annual report – 31 March 2025
Industry: utility
Strategic Report (extract)
Task Force on Climate-related Financial Disclosures (TCFD)
Understanding the potential impacts of climate change
At National Grid, we recognise that addressing climate change is the defining challenge of the 21st century and the energy transition is accelerating at pace. Our networks and operations are crucial to transforming the energy system in the jurisdictions where we operate. We are supportive of the Paris Agreement’s long-term goal to keep the rise in global average temperature by 2100 to well below 2ºC above pre-industrial levels, and to pursue efforts to limit the increase to 1.5ºC.
We have supported the recommendations of the TCFD since its initial publication. The framework helps us understand the impact of climate change on our operations and has benefited us directly by: shaping our governance structure to effectively oversee risks and opportunities; aligning our business strategy to identify and seize transitional opportunities, including our significant step up in asset growth; developing values of sustainability in our corporate culture; and embedding climate change into our risk management framework, which has engaged our lines of defence to manage the associated risks.
We fully comply with FCA Listing Rule 6.6.6(8)R and align our climate-related financial disclosures with the TCFD’s four pillars – governance, strategy, risk management, and metrics and targets, with 11 recommended disclosures under these pillars. Additionally, we meet the climate-related financial disclosure requirements outlined in sections 414CA and 414CB of the Companies Act 2006.
We published our second CTP in May 2024, which sets out the strategic action plans and mechanisms to realise our net zero commitments.
Accounts examples 