TCFD

The Task Force on Climate-related Financial Disclosures (TCFD) produced a framework for companies and financial institutions to disclose climate-related financial risks and opportunities in a consistent way. It was established by the Financial Stability Board.

The recommendations are organized around four pillars: governance (how the board and management oversee climate issues), strategy (the impact of climate risks and opportunities on the business, including scenario analysis), risk management (how climate risks are identified and managed), and metrics and targets (including greenhouse gas emissions).

TCFD became the most widely referenced climate disclosure framework and was adopted into mandatory regimes in several jurisdictions. Its four-pillar structure was carried into the ISSB's IFRS S2 climate standard, and the IFRS Foundation took over monitoring of companies' climate-related disclosures as the TCFD concluded its work.

Because its structure underpins so many later standards, familiarity with the TCFD pillars remains a baseline expectation for climate reporting and climate risk roles.