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Taskforce for Climate-Related Financial Disclosures (TCFD)

Sustainability-related financial disclosures on the material financial impacts of climate change

The Taskforce for Climate-related Financial Disclosures (TCFD) was established by the Financial Sustainability Board in 2015. Its goals are two-fold:  

  1. Encourage the uptake of unified climate risk and opportunity measurement
  2. Strengthen sustainability disclosure across the private sector so that financial markets can price risk effectively.

The TCFD first published its framework in 2017, outlining guidance for disclosures regarding governance, strategy, risk management and climate targets.

As of 2021, the TCFD framework is now an integral part of the International Sustainability Standards Board (ISSB), a new body within the International Financial Reporting Standards (IFRS) Foundation.

Objectives of TCFD

Transparency on climate risks: Enable investors, lenders, and stakeholders to better assess the climate-related financial risks and opportunities

Drive corporate climate action: Encourage businesses to integrate climate related considerations into their governance, strategy, and risk management.

Support investment in sustainability: Provide clear, decision-useful climate information to help investors make informed investment decisions.

Benefits of TCFD reporting

As investor demands for climate-related disclosure continue to grow, TCFD-aligned reporting can provide a competitive edge in the race for capital:

✅ Regulatory Compliance: Unlike voluntary CFD, mandatory TCFD applies specifically to FCA-regulated companies including premium-listed and standard-listed companies subject to the Financial Conduct Authority (FCA) Listing Rules.

✅ Preparedness for Net Zero: The TCFD’s recommendations can help organisations strengthen their understanding of the risks and opportunities along the road to Net Zero.

✅ Informed Investment: the TCFD encourages clear and consistent reporting leading to informed investment decisions and reduced capital losses.

✅ Competitive advantage: S&P Global Ratings incorporate the TCFD recommendations, providing the potential for competitive advantage.

How Acclaro can support your TCFD reporting

Navigating the TCFD requirements can be complex, but we’re here to help. Our expertise ensures your organisation not only meets compliance obligations but also leverages TCFD reporting for strategic advantage.

We support your TCFD journey by:

  • Implementing the 11 TCFD recommendations, including Scenario Analysis, to assess potential climate-related impacts on your business.
  • Identifying climate-related risks and opportunities to help your organisation adapt to climate change by recognising emerging risks and unlocking new opportunities.
  • Assessing materiality and stakeholder impact to evaluate the relative impact and importance to both your organisation and its key stakeholders.
  • Developinga resilient climate strategy to future proof your business.
  • Complying with reporting obligations and enhancing the effectiveness of climate communications.

With Acclaro’s guidance and expertise, your organisation can move beyond compliance to strategically integrating climate considerations into decision-making.

Our 3 stage approach

Our approach to TCFD comprises a three stage evolution that provides a pathway towards compliance:

Assess current practices to identify areas that fall short of TCFD-aligned disclosure requirements

Develop a clear roadmap to address gaps, ensuring a robust, compliant, and insightful climate-related financial report

Development of a robust and compliant report.

Need a hand with your TCFD reporting?

We’d love to have a chat about how we can support you.