The Financial Stability Board Task Force on Climate Related Financial Disclosures launched the principles based recommendations for climate-related disclosures in 2017. Since 2023, the TCFD framework has been incorporated into the International Sustainability Standards Board (ISSB) of the IFRS Foundation.
The TCFD recommendations suggest the voluntary disclosure of detailed information regarding the management of climate change around four thematic areas that represent core elements of how organizations operate:
- Governance: the organization’s governance around climate-related risks and opportunities
- Strategy: the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy and financial planning
- Risk Management: the processes used by the organization to identify, assess and manage climate-related risks
- Metrics and Targets: the metrics and targets used to assess and manage relevant climate-related risks and opportunities.
The EU Commission has integrated the TCFD recommendations into the new Guidelines on reporting climate-related information, that are part of the (EU Action Plan for sustainable growth). TCFD Disclosures are incorporated in Piraeus Reporting under CSRD (Corporate Sustainability Reporting Directive).