Task Force on Climate Related Financial Risk Disclosures

TCFD

The Task Force on Climate Related Financial Risk Disclosures was created in 2015 by the Financial Stability Board.

Climate Related Financial Disclosures

Climate-related financial disclosures refer to the information that companies and organizations provide about the financial impacts of climate change on their operations and finances. This includes the risks and also opportunities associated with climate change. Also included are the policies and strategies they have in place to address it. In addition their progress in reducing emissions and adapting to a low-carbon economy are also included. The goal of these disclosures is to provide investors and stakeholders with a clearer understanding of a company’s exposure to climate-related risks and also opportunities. In addition helping drive investment decisions that are better aligned with a low-carbon future.

The purpose of TCFD is to develop consistent climate-related financial disclosures for use by companies, banks, and also investors in providing any information to the stakeholders.

In 2017, the TCFD released climate-related ļ¬nancial disclosure recommendations designed to help companies provide better information to support informed capital allocation. The recommendations are structured around four areas that represent core elements of how companies operate. These core elements are: governance, strategy, risk management, and metrics and targets.

To find out more about the framework visit here