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Glossary

Task Force on Climate-Related Financial Disclosure (TCFD) Guidance

Task Force on Climate-Related Financial Disclosure (TCFD)

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Overview

The Task Force on Climate-related Financial Disclosures (TCFD) Recommendations provide a framework for organisations to disclose information about their climate-related risks and opportunities. Published in 2017, the recommendations were designed to help organisations provide consistent, comparable and decision-useful information to investors, lenders and other stakeholders.

The recommendations are structured around four core areas – governance, strategy, risk management, and metrics and targets – and include 11 recommended disclosures. They also provide guidance on scenario analysis and the disclosure of climate-related risks and opportunities.

The TCFD completed its work in 2023 and was disbanded in October 2023. The Financial Stability Board subsequently asked the IFRS Foundation to take over monitoring of companies’ climate-related disclosures. The TCFD Recommendations have been fully incorporated into the ISSB’s IFRS S2 Climate-related Disclosures Standard, alongside the broader requirements of IFRS S1. Companies applying IFRS S1 and IFRS S2 will therefore meet the TCFD recommendations and additional requirements.

The original TCFD Recommendations remain available as a useful reference, particularly for organisations transitioning to the ISSB Standards or operating in jurisdictions where TCFD-aligned requirements continue to apply.

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About

Name
Task Force on Climate-related Financial Disclosures (TCFD) Recommendations
Owner(s)
Task Force on Climate-Related Financial Disclosure (TCFD)
First Published
2017
Licensing Terms
Open Access
Number of Participants
More than 500
Applicable Size of Entity
Agnostic/All
Status
The TCFD completed its work and was disbanded in October 2023.

Governance

Scheme Holder Type
International Organisation – An organisation established by treaty between a group of nations, such as the United Nations or the ILO.
Core Focus
Reporting and disclosure standard – A standard that determines how aspects of a standard-holding organisation’s sustainability performance are reported and disclosed.
Claim Type
Business practice performance

Key areas

The TCFD Recommendations are structured around four core areas:

  • Governance – oversight and management of climate-related risks and opportunities
  • Strategy – the actual and potential impacts of climate-related risks and opportunities on an organisation’s business, strategy and financial planning
  • Risk management – processes for identifying, assessing and managing climate-related risks
  • Metrics and targets – metrics and targets used to assess and manage relevant climate-related risks and opportunities

Understanding the TCFD Recommendations remains relevant for organisations developing or reviewing their climate-related risk management and disclosure approaches. TDi can help organisations understand climate-related risks within their operations and value chains and assess how these risks interact with wider environmental, social and governance issues.

For organisations transitioning from TCFD-aligned reporting to the ISSB Standards, TDi’s expertise in sustainability reporting, risk assessment and supply-chain due diligence can help connect climate-related disclosure requirements with wider sustainability risk management.

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