TCFD-CLIMATE-DISCLOSURE

FSB climate finance disclosure framework.

Definition

TCFD 11 Recommended Disclosures on 4 pillars: Governance (G1 Board oversight, G2 Management role), Strategy (S1 Material climate risks/opps, S2 Climate impact business, S3 Resilience scenario analysis 1.5C/2C/4C), Risk Management (R1 Climate risk ID processes, R2 Climate risk management, R3 Integration enterprise risk), Metrics and Targets (M1 Climate metrics, M2 Scope 1-2-3 GHG emissions, M3 Targets and performance). ~4000 organisations adoption 2024. TCFD activities transferred to IFRS Foundation/ISSB October 2023 (IFRS S2 incorporates TCFD).

Origin

TCFD created by Financial Stability Board (FSB) December 2015 ; chaired by Michael Bloomberg ; final recommendations published June 2017 ; activities transferred to IFRS Foundation October 2023.

Example in context

BNP Paribas publishes its 2023 TCFD report: 1.5C, 2C, 4C scenario analysis on energy lending portfolio ; transition risks ~10% portfolio, physical risks ~5% portfolio.

Related terms

• ISSB IFRS S1-S2 — formal successor.