Phoenix Energy, based in Belfast, owns and operates the largest natural gas distribution network in Northern Ireland, supplying energy to more than 370,000 properties and over 260,000 customers.
Gareth Wright, Director of Business Services, explains how Phoenix Energy implemented the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) into their business reporting.
Why TCFD matters to our business
“As a large business in the energy sector, we understand the significant impact our operations can have on climate change, and we take this responsibility seriously. We’ve consistently led by example in responsible business practices, demonstrated through our participation in the NI Environmental Benchmarking Survey, recognition as a Sector Leader by GRESB (a Global Sustainability Assessment), and our achievement of ISO 22458 for Consumer Vulnerability.”
“We voluntarily adopted the TCFD recommendations in 2020, publishing our first disclosures in June 2021. This decision was driven by our commitment to our Environmental, Social, and Governance (ESG) Strategy and our vision to be recognised for excellence as a world-leading energy utility.”
How we did it
“Our TCFD journey began by partnering with an external consultant. A collaborative gap analysis helped us identify critical steps. We then built the necessary foundation through climate change workshops, qualitative climate change scenario analysis, and the development of a climate-related Risks and Opportunities Register.”
“We deepened our understanding and resilience to climate change through climate change scenario analysis using long-term financial modelling. This challenging work delivered detailed outputs, providing crucial insights into the potential financial impacts of different climate change scenarios. Consequently, our TCFD reporting improved significantly, enabling us to develop a realistic yet challenging pathway towards net zero.”
“We integrate TCFD reporting into both our financial statements and our Responsible Business Report, aligning it seamlessly with our broader ESG Strategy. This unified approach reflects our commitment to leading climate action, driven by dedication rather than brand recognition, for the benefit of both our company and the communities we serve.”
The benefits of TCFD
“TCFD reporting has significantly enhanced our understanding of climate change and its potential impact on our business operations, enabling proactive planning and preparation. We’ve identified critical climate-related risks, including increased operating costs from extreme weather and potential network disruptions. Events like the 2023 flooding in Downpatrick highlight the tangible reality of these risks and reinforce the necessity of our proactive planning and robust response strategies.”
“TCFD reporting has enhanced climate-related intelligence across our leadership, operational, and technical teams, actively driving internal change and embedding climate considerations into decision-making at all levels. This approach strengthens our resilience and solidifies our position as a responsible business, fully prepared for future challenges.”
How TCFD prepares us for the future
“We’ve learned that continuous engagement and regular reviews are essential. Analysis cannot be a one-time task; it demands ongoing updates to remain relevant and accurate. Regularly re-running scenario analyses and reviewing risks ensures our findings align with the latest developments. Staying current with emerging guidance is also crucial for effectiveness and compliance.”
“Moving forward, we will continue to evolve our framework for ongoing reviews and explore new tools to enhance the efficiency of our analysis. This will streamline the process, ensuring we remain aligned with best practices and new developments.”
