National Grid plc – Annual report – 31 March 2024
Industry: utility
Strategic Report (extract)
Task Force on Climate-related Financial Disclosures (TCFD)
At National Grid, we recognise that addressing climate change is the defining challenge of the 21st century. Our networks and operations play a central role in the transition of 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, which helps us understand the impact of climate change on our business, has benefitted us directly by: shaping our governance structure to effectively oversee risks and opportunities; aligning our business strategy to identify and seize transitional opportunities; 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.
In this year’s disclosure we have fully complied with the FCA Listing Rule 9.8.6R(8). Our climate-related financial disclosures are considered to be consistent with the TCFD’s four recommendations and 11 recommended disclosures, as illustrated in the index to the right. In addition, we have also fully complied with the climate-related financial disclosure requirements set out in s.414CA and s.414CB of the Companies Act 2006.
In the following sections, we set out our response to the TCFD’s four core recommendations – governance, strategy, risk management, and metrics and targets – in line with the recommendations and guidance described above. We will also be publishing a new Climate Transition Plan in 2024, which sets out the strategic action plans and mechanisms we have in place to realise our net zero commitments.
TCFD index
The following index navigates between our disclosures and the TCFD’s recommendations and recommended disclosures:
Accounts examples 