Task Force on Climate-related Financial Disclosures

Financial markets reporting - Financial Stability Board (FSB).

(TCFD).

The FSB's Task Force on Climate-related Financial Disclosures (TCFD) is established to develop voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers, and other stakeholders.

The TCFD considers the physical, liability and transition risks associated with climate change and what constitutes effective financial disclosures across industries.

The work and recommendations of the Task Force are designed to help organisations understand what financial markets want from disclosure in order to measure and respond to climate change risks, and encourage organisations to align their disclosures with investors’ needs.

The TCFD published Recommendations and Detailed Guidelines (the 'Recommendations') in June 2017.

Climate risk disclosures

"The Financial Conduct Authority (FCA) implemented a new Listing Rule applicable to premium listed commercial companies designed to help users understand how they are managing climate-related risks.

The new Rule (LR 9.8.6(8)) does this by requiring disclosures in annual reports consistent with the recommendations and recommended disclosures of the Task Force on Climate-related Disclosures (TCFD).

The Rule will apply to accounting periods beginning on or after 1 January 2021 with the first annual financial reports under the new rule published in the spring of 2022."

ACT blog, 19 February 2021 - Naresh Aggarwal, Associate Director, Policy & Technical.

See also

• Boilerplate
• CDP (formerly the Carbon Disclosure Project)
• Climate change
• Climate Disclosure Standards Board (CDSB)
• Climate risk
• Climate transition risk
• COP26 Private Finance Hub
• COP27
• Disclosure
• EU Taxonomy
• Financial Conduct Authority
• Financial risk
• Financial Stability Board
• G20
• Listing Rules
• Premium Listing
• Risk management
• Stakeholder
• Standard Setting Body
• Task Force on Nature-related Financial Disclosures (TNFD)
• Taxonomy alignment disclosures
• TCFD Recommendations
• The Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022 - UK
• Transition risk
• Value Reporting Foundation (VRF)
• World Economic Forum

External link

Task Force on Climate-related Financial Disclosures