Sustainable Resilience Blog


Thought leadership, idea-sharing and discussion on disclosure, transparency and sustainable resilience strategies and practices that will empower responsible investing. These are the critical dimensions of our transition to the post-carbon economy that assures a sustainable and resilient future for all of us.

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What is TCFD?
Launched by the G20 Financial Stability Board to provide climate reporting guidelines for companies, the Task Force on Climate-related Financial Disclosure (TCFD) is a set of reporting recommendations that enable companies to monitor and reduce the risks associated with climate change. It provides companies with a method for incorporating climate change into their business plans by integrating strategy and climate scenario analysis into the financial risks identified by the company.

The Task Force will consider the physical, liability and transition risks associated with climate change and what constitutes effective financial disclosures across industries.

Unlike other recent reporting developments, TCFD isn’t about your impact on the environment, it is about the environment’s impact on you. These disclosures are targeted at mainstream investors, and are intended to help them assess whether climate risk is appropriately priced in to their valuation of your company.

Who Reports?

TCFD applies to:

  • organisations from both the financial and nonfinancial sectors
  • increasingly other frameworks are including the recommendations and encouraging their responders to align their disclosures with them.
  • especially relevant for those with annual revenue above US$ 1 billion.
  • asset managers and owners looking to better understand risk and how this affects their investments.
What is Reported?
There are four key areas for TCFD reporting, as shown in the diagram below:

Examples of questions that are posed in each of the four key dimension are:

Governance - Is climate change governance defined and sufficient at all hierarchical levels, especially at the highest level?

Strategy - What are the impacts (actual and potential) of climate-related risks and opportunities on business strategy and financial planning? How resilient is the business strategy under various climate scenarios, including the 2°C scenario?

Risk management - How to identify and manage climate-related risks and opportunities within the company? How does this approach fit with the general risk management of the company?

Measures and Objectives - What indicators and targets should an organisation use to measure and manage climate-related risks and opportunities? What are the company’s emissions on Scopes 1, 2 and 3?

What is Disclosed?
The table below summarises the recommended disclosures under TCFD:


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