TCFD (Task Force on Climate-related Financial Disclosures)

The TCFD (Task Force on Climate-related Financial Disclosures) is the framework established in 2015 by the Financial Stability Board (FSB) for voluntary climate-related financial disclosure. The TCFD Recommendations (2017) organise disclosures under four pillars: Governance; Strategy (including scenario analysis); Risk Management; and Metrics and Targets. The TCFD framework was incorporated in full into IFRS S2 (ISSB, June 2023), making it the de facto global standard for climate-related financial disclosures. The FSB formally disbanded the TCFD in 2024, transferring monitoring to the IFRS Foundation, as ISSB has now taken over TCFD’s role.

TCFD Recommendations (2017); IFRS S2 (incorporates TCFD four-pillar framework); FSB announcement transferring monitoring to IFRS Foundation (October 2023).

TCFD-aligned disclosure is now effectively mandatory through IFRS S2 in 36+ jurisdictions and through ESRS E1 in the EU. Companies that have been voluntarily reporting under TCFD have a significant head start for IFRS S2 compliance. The four-pillar TCFD structure (Governance, Strategy, Risk Management, Metrics & Targets) provides a practical organising framework for climate disclosures in annual reports. Scenario analysis — using at least 1.5°C and a higher-warming scenario — is the most operationally complex TCFD/IFRS S2 requirement.