TCFD

The Task Force on Climate-related Financial Disclosures (TCFD) was established in 2015 by the Financial Stability Board to develop a voluntary, consistent framework for climate-related financial risk disclosures that could be used by companies in reporting to investors, lenders, and insurers. The TCFD published its final Recommendations in 2017, which have since influenced corporate reporting practices and regulatory disclosure regimes in many jurisdictions.

The Recommendations are organized around four core elements: governance, strategy, risk management, and metrics and targets. Each element asks organizations to describe how climate-related issues affect the business and how they are managed and monitored. The framework also emphasizes cross-cutting information, including climate-related scenario analysis to test the resilience of strategy under different climate futures and the disclosure of metrics and progress toward climate-related targets.

Implementation and influence: Over time, adoption has expanded beyond voluntary reporting to include regulatory requirements in various jurisdictions and sectors. The TCFD recommendations align with other global reporting initiatives, and since 2021 they have been referenced by the IFRS Foundation in its efforts to standardize sustainability disclosures through the International Sustainability Standards Board (ISSB).