Climate-related financial disclosure reporting (TCFD)
For businesses, building resilience and adjusting to new opportunities must be a focus when taking action on climate change. A climate-resilient business is more insurable, profitable, and attractive to investment. For many businesses, building climate resilience will not require starting from the beginning. It starts by integrating climate considerations into existing risk management and planning procedures.
The Task Force on Climate-Related Financial Disclosures (TCFD), established by the Financial Stability Board (FSB) in December 2015, is a global advisory board created to address the increasing recognition that climate change presents financial risks to businesses, investors, and the broader economy.
TCFD has developed a reporting framework to enable companies to understand and report climate-related risks to investors, lenders and insurance underwriters. TCFD reporting is mandatory for large businesses in the United Kingdom, but small and medium-sized businesses (SMEs) may have to report on these issues as part of their broader supply chain.
This guide explains the TCFD reporting framework and requirements. It highlights how to report on climate-related risk, covering governance, strategy, risk management, and metrics and targets, and where to get more support on climate resilience. Finally, it provides access to resources for support in improving climate resilience.