Guidance Note on the TCFD Recommendations for
City, State, and Regional Governments
Guidance for reporting in line with the recommendations of the Task Forceon Climate-related Financial Disclosures (TCFD)

Contents
Version Control ......................................................................................................................... 3
Summary ................................................................................................................................... 4
Section 1 .................................................................................................................................... 7
Overview of TCFD Recommendations..................................................................................... 7
1.1 Introduction....................................................................................................................... 7
1.2 TCFD’s Background and Mission ..................................................................................... 7
Background ................................................................................................................... 7
Mission .......................................................................................................................... 7
TCFD’s Principles for Effective Disclosure..................................................................... 8
1.3 TCFD’s Recommended Disclosures ................................................................................. 9
1.4 TCFD Publications ...........................................................................................................10
1.5 TCFD Support .................................................................................................................10
Section 2 .................................................................................................................................. 12
Alignment with TCFD Recommendations ............................................................................. 12
2.1 Background for TCFD Alignment .....................................................................................12
2.2 Breakdown of TCFD-related Questions ...........................................................................14
Appendix ................................................................................................................................. 17
Further Information on TCFD Reporting and Alignment ...................................................... 17
Appendix A Additional Resources ........................................................................................17
Appendix B Alignment Process ............................................................................................18
Appendix C CDP-ICLEI Track ..............................................................................................20

Version Control
Version

Revision date

Revision summary

1.0

October 6, 2022

First published version

2.0

October 5, 2022

Updated examples of TCFD-aligned reporting in Appendix A, ii tothe most current year available.

3.0

February 21, 2023

Question numbers and text in question mapping table (Table 1)
updated to align with 2023 CDP-ICLEI Track and States andRegions Questionnaires.
Section 1.5 TCFD Support – timeline updated.

4.0

July XX, 2024

Question numbers and text in question mapping table (Table 1)
updated to align with 2024 CDP-ICLEI Track and States andRegions Questionnaires. Updated examples of TCFD-aligned
reporting in Appendix A, ii to most current year available. Added
an additional resource to Appendix A.

Summary
What is the TCFD and what does it do?
The Task Force on Climate-related Financial Disclosures (TCFD) is a voluntary framework,
published in 2017 and revised in 2021, which was developed at the request of the G20 Finance
Ministers and Central Bank Governors. The TCFD framework provides recommendations andguidance about how to disclose climate-related risks.
The aim of the TCFD recommendations is to enable stakeholders to allocate capital efficiently
through the transition to a low-carbon economy without a potential dislocation of capital in thefinancial markets. The voluntary, financially relevant, climate disclosure recommendations help
promote informed investment, credit, and insurance underwriting decisions that can in turn enable
stakeholders to better understand assets exposed to climate-related risks.
The TCFD does not specify a disclosure or reporting mechanism. Instead, seven principles havebeen identified for effective disclosure. Effective disclosure should:
1.
2.
3.
4.
5.
6.
7.

Represent relevant information;
Be specific and complete;
Clear, balanced and understandable;
Consistent over time;
Comparable among others within a sector, industry or portfolio;
Reliable, verifiable and objective; andProvided on a timely basis.

(See Section 1.2 for more information.)

How do I disclose against the TCFD recommendations?
While corporations and capital market participants have been engaging with and reporting against
the TCFD recommendations since 2017, local governments had been unable to disclose theirclimate-related information against the TCFD recommendations in a standardized andcomparable manner.
From 2022, cities, states and local governments can disclose in alignment with the TCFD’s
recommendations through CDP-ICLEI Track for cities and local governments and the States andRegions Questionnaire.

What are the TCFD recommendations?
The recommendations are structured around fourthematic areas that are underpinned by 11 disclosure
recommendations. These represent core elements of
how local governments and organizations operate andare formed to create decision-useful, climate-related
information.

The four recommendations are:

 Governance
Disclose the organization’s governance around climate-related risks and opportunities.
 Example from Questionnaire: Provide information on your jurisdiction’s oversightof climate-related risks and opportunities and how these issues have impacted
your jurisdiction's planning.
 Strategy
Disclose the actual and potential impacts of climate-related risks and opportunities on
the organization's business, strategy, and financial planning where such information ismaterial.
 Example from Questionnaire: Provide details on the most significant climate
hazards faced by your jurisdiction.
 Risk Management
Disclose how the organization identifies, assesses, and manages climate-related risks.
 Example from Questionnaire: Provide details on your climate risk andvulnerability assessment and the processes in place for identifying, assessing,and managing climate-related risks.
 Metrics and Targets
Disclose the metrics and targets used to assess and manage relevant climate-relatedrisks and opportunities where such information is material.
 Example from Questionnaire: Provide a breakdown of your community-wide
emissions by sector.
These are designed to aid entities in recognizing the links between climate-related issues andtheir practices surrounding governance, strategy, risk management, and metrics and targets. The
four recommendations are supported by specific disclosures local governments should include in
financial filings or other reports to provide decision-useful information to investors and others. (Formore detailed information, see Section 1.3 and 2.2.)

Benefits of reporting against TCFD recommendations
Demand for climate-related disclosure has increased significantly since the release of the TCFD
recommendations. Public sector leaders have noted the importance of transparency on climaterelated issues with several national governments and public sector organizations formallysupporting the TCFD1. In addition, mainstreaming climate-related issues into the sub-national
government decision making process will support jurisdictions in addressing climate risks andopportunities. The benefits of reporting against the TCFD recommendations include: Disclosure of decision-useful information: A response to CDP-ICLEI Track for cities
and the States and Regions Questionnaires puts the information required by the TCFD
into a recognized, established system that can structure, analyze, compare, and trace
information transparently.
 Preparation advice: The Cities and States and Regions Questionnaires offers support togovernments throughout the disclosure process and provides guidance on how to distilland present information in line with the TCFD recommendations.
 Demonstration of responsiveness to capital markets expectations: Helping todemonstrate sustainability leadership to potential investors. In some cases, disclosure andtransparency can help lead to a lower cost of capital when borrowing.
 Attraction of new global investors: Supports investors seeking international investment
opportunities for sustainable infrastructure projects that can show alignment withEnvironmental, Social, and Governance investment themes.
 Cost reduction: Increased awareness and preparedness that can reduce costs andpotential damage to support more resilient communities.
 Foster collaboration: Catalyst for improved cross-departmental collaboration onsustainability disclosure, leading to enhanced support to environmental goals across thecapital planning and allocation process.
(See Section 2.1 for more.)1

https://assets.bbhub.io/company/sites/60/2021/10/TCFD_Booklet_FNL_Digital_March-2021.pdf

Section 1
Overview of TCFD Recommendations
1.1 Introduction
This guidance note provides an overview of the Task Force on Climate-related Disclosures (TCFD)
recommendations (Section 1) and how the Cities Questionnaire and States and Regions
Questionnaire have aligned with the TCFD’s recommendations (Section 2).

1.2 TCFD’s Background and Mission
BackgroundAt the request of the G20 Finance Ministers and Central Bank Governors, the Financial Stability
Board (FSB) and its chair at that time, Mark Carney, established the industry-led Task Force on
Climate-related Financial Disclosures (TCFD or Task Force). This was in response to increasing
demands from investors, lenders, insurers, regulators, policy makers, and other stakeholders in
the financial markets for decision-useful, climate-related information.
Inadequate information about risks can lead to mispricing of assets and misallocation of capitalthat can potentially lead to concerns about the stability of financial markets, as they can bevulnerable to abrupt corrections. Chaired by Michael Bloomberg, the TCFD’s objective was toformulate a set of recommendations to help organizations to understand and disclose their
exposure to climate-related issues.
Demand for climate-related disclosure has increased significantly since the release of the TCFD
recommendations in 2017. Many private sector financial institutions, investors, and others
continue to make progress on incorporating climate-related disclosure into their financial decisionmaking.
MissionThe TCFD was tasked with developing a set of voluntary, financially relevant, climate disclosure
recommendations that could promote informed investment, credit, and insurance underwriting
decisions that could in turn enable stakeholders to better understand assets exposed to climaterelated risks.
The aim of the TCFD is to enable stakeholders to allocate capital efficiently through the transition
to a low-carbon economy without a potential dislocation of capital in the financial markets. The
recommendations are structured around four thematic areas that represent core elements of howorganizations operate, as outlined below.

Governance•The organization’s governance around climate-related risks andopportunities

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 climaterelated risks and opportunities
Figure 1: TCFD Disclosure Recommendations

The TCFD’s final report presents a principle-based set of recommendations for voluntary
disclosure that aims to balance the needs of data users with the challenges faced by preparers.
The report (and other TCFD publications provided in Section 1.4) provides the overarching core
recommendations with supporting information on climate-related risks, opportunities, financial
impacts, and scenario analysis. In 2021, the Task Force released additional publications for
guidance on metrics, targets, and transition planning.
TCFD’s Principles for Effective Disclosure
To underpin the formal recommendations, the TCFD developed principles for effective
disclosure. These are designed to aid organizations in recognizing the links between climaterelated issues and their practices surrounding governance, strategy, risk management, andmetrics and targets.
The TCFD does not specify a disclosure or reporting mechanism. Instead, seven principles havebeen identified for effective disclosure. Effective disclosure should:
1.
2.
3.
4.
5.
6.
7.

Represent relevant information;
Be specific and complete;
Clear, balanced and understandable;
Consistent over time;
Comparable among others within a sector, industry or portfolio;
Reliable, verifiable and objective; andProvided on a timely basis.

1.3 TCFD’s Recommended Disclosures
The four recommendations, outlined in Figure 1 above, are supported by specific disclosures organizations should include in financial
filings or other reports to provide decision-useful information to investors and others, as demonstrated in Figure 2 below.
Governance

Strategy

Risk Management

Metrics and Targets

Disclose the organization’s
governance around climaterelated risks andopportunities.

Disclose the actual and potential impactsof climate-related risks and opportunities
on the organization’s businesses,
strategy, and financial planning wheresuch information is material.

Disclose how the organization
identifies, assesses, and manages
climate-related risks.

Disclose the metrics and targets
used to assess and manage
relevant climate-related risks andopportunities where suchinformation is material.

Recommended Disclosures

Recommended Disclosures

Recommended Disclosures

Recommended Disclosuresa) Describe the board’sa) Describe the climate-related risks andopportunities the organization has
identified over the short, medium, andlong term.

a) Describe the organization’s
processes for identifying andassessing climate-related risks.

a) Disclose the metrics used by theorganization to assess climaterelated risks and opportunities inline with its strategy and risk
management process.

b) Describe the impact of climate-relatedrisks and opportunities on theorganization’s businesses, strategy, andfinancial planning.

b) Describe the organization’s
processes for managing climaterelated risks.

b) Disclose Scope 1, Scope 2, and, if
appropriate, Scope 3 greenhousegas (GHG) emissions, and therelated risks.

c) Describe the resilience of theorganization’s strategy, taking into
consideration different climate-related
scenarios, including a 2°C or lower
scenario.

c) Describe how processes for
identifying, assessing, andmanaging climate-related risks areintegrated into the organization’s
overall risk management.

c) Describe the targets used by theorganization to manage climaterelated risks and opportunities andperformance against targets.

oversight of climate-relatedrisks and opportunities.

b) Describe management’s

role in assessing andmanaging climate-relatedrisks and opportunities.

Figure 2: TCFD Disclosure Recommendations

1.4 TCFD Publications
We recommend readers review the TCFD’s full report and associated publications, listed below,
as this note will not present the TCFD’s recommendations in their entirety.

This report provides context,
background, and the generalframework for climate-related
financial disclosures. It is
intended for broad audiences.

The annex (published
October 2021) provides thenext level of detail to help
reporting entities implement
the recommendations.

The technical supplement isa further level of detail thatcan be helpful for reporting
entities in considering
scenario analysis.

In October 2021, the TCFD released additional guidance for preparers regarding disclosures ofclimate-related metrics and targets and key information from transition plans to address recent
developments and feedback from users, preparers, and others. Further publications including
supporting materials and recent status reports are available from the TCFD website. If you haveany questions, comments, or suggestions that are not addressed in this guidance note, please
visit the CDP Help Center.

1.5 TCFD Support
The TCFD recommendations have helped mainstream the importance of climate-related
financial disclosures and has received strong support from stakeholders. For example:
 100+ CEOs publicly supported the TCFD recommendations on launch Over 2,600 organizations globally have now supported the TCFD’s recommendations
 477 investors (with over $34 Trillion AUM) wrote to the G20 to encourage the group to
consider the TCFD’s recommendations as input to their national disclosure rules.
 The Council of the European Union welcomed the development of the TCFD
recommendations (alongside the work of the HLEG, OECD and G20 Green Finance Study
Group).
 May 2020–Canada made TCFD aligned reporting a requirement for companies to access
COVID-19 emergency loans.

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 September 2020–New Zealand announced it will become the first country worldwide to
implement mandatory TCFD reporting for large banks and insurers.
 November 2020–The UK became the first G20 country to set out its intention to mandate
TCFD aligned disclosure by 2023, with full coverage by 2025.
 The Japanese Financial Services Agency has also raised the option of updating its
Corporate Governance Code to increase TCFD-aligned disclosure April 2021–the European Commission issued a proposed Corporate Sustainability
Reporting Directive (CSRD) that would amend existing reporting requirements with theintention of taking into account existing standards and frameworks, including the TCFD
framework.
 September 2021–The Central Bank of Brazil announced mandatory TCFD-aligned
disclosure requirements, which will initially focus on qualitative aspects related togovernance, strategy, and climate-related risk management for regulated institutions.
 November 2021–Announcement by the IFRS Foundation of the formation of anInternational Sustainability Standards Board to develop a baseline of sustainability
disclosure standards. One prototype document has already been published which builds on
the TCFD’s recommendations.
 March 2022 –The U.S. Securities and Exchange Commission (SEC) proposes rules toenhance and standardize climate-related disclosures for investors.
 April 2022 –The Government of Canada announced mandatory reporting of climate-related
financial risks for all federally regulated financial institutions, including Canadian banks, andall federally incorporated or registered insurance companies, beginning in 2024.

Page 11 of 20

Section 2
Alignment with TCFD Recommendations
2.1 Background for TCFD Alignment
Though the Task Force on Climate-related Financial Disclosures (TCFD) recommendations were
initially developed for the private sector, the recommendations have significant applicability for
sub-national governance. Public sector leaders have noted the importance of transparency on
climate-related issues with several national governments and public sector organizations formallysupporting the TCFD2. In addition, mainstreaming climate-related issues into the sub-national
government decision making process will support jurisdictions in addressing climate risks andopportunities.
While corporations and capital market participants have been engaging with and reporting against
the TCFD recommendations for over five years, a parallel pathway for local governments isneeded. Until 2022, local governments have been unable to disclose their climate-related
information along the guidance of the TCFD in a standardized, centralized, and comparable
manner. In Canada, an increasing number of cities including Calgary, Edmonton, Montreal,
Toronto, and Vancouver are reporting against the TCFD recommendations annually.
CDP’s disclosure platform provides the mechanism for reporting in line with the TCFD
recommendations. By translating the TCFD recommendations and principles into disclosure
questions and a standardized annual format, CDP provides investors and disclosers with a uniqueplatform where the TCFD Framework can be brought into real-world practice. Cities, states, andregions which disclose through CDP are doing so in line with the TCFD recommendations, in acomparable and consistent way that is relevant and accessible to the global economy.

2

https://assets.bbhub.io/company/sites/60/2021/10/TCFD_Booklet_FNL_Digital_March-2021.pdf

Page 12 of 20

Benefits of reporting against TCFD recommendations
As a result of providing a standardized annual reporting format, CDP has the largest TCFDaligned environmental database in the world, and CDP scores are widely used to drive
investment and procurement decisions towards a zero carbon, sustainable and resilient
economy.
Additional benefits of reporting against the TCFD recommendations include: Disclosure of decision-useful information: A response to CDP-ICLEI Track for cities
and the States and Regions Questionnaires puts the information required by the TCFD
into a recognized, established system that can structure, analyze, compare, and trace
information transparently.
 Preparation advice: CDP-ICLEI Track and the States and Regions Questionnaire offers
support to governments throughout the disclosure process and provides guidance on how
to distill and present information in line with the TCFD recommendations.
 Demonstration of responsiveness to capital markets expectations: Helping todemonstrate sustainability leadership to potential investors. In some cases, disclosure andtransparency can help lead to a lower cost of capital when borrowing. 3
 Attraction of new global investors: Supports investors seeking international investment
opportunities for sustainable infrastructure projects that can show alignment withEnvironmental, Social, and Governance investment themes.
 Increased awareness and preparedness that can reduce costs and potential damage
to support more resilient communities.
 Catalyst for improved cross-departmental collaboration on sustainability disclosure,leading to enhanced support to environmental goals across the capital planning andallocation process.

3 The Village of Hastings-on-Hudson upgraded their Moody’s rating.

Page 13 of 20

2.2 Breakdown of TCFD-related Questions
The four overarching TCFD recommendations are supported by 11 key climate-related disclosures, as outlined in Figure 2 above, build out
the framework with information that will help investors and others understand how reporting entities think about and assess climate-relatedrisks and opportunities. Table 1, below, maps the questions which comprise the Cities Questionnaire and States and Regions Questionnaire
against each of the 11 climate-related disclosures.
CitiesQuestion
NumberStates andRegions
Question
Number

1.3

1.3

Question text

TCFD Recommended Disclosure

Provide information on your jurisdiction’s
oversight of climate-related risks andopportunities and how these issues have
impacted your jurisdiction's planning.

Governance recommended disclosure a) Describe the board’s oversight ofclimate-related risks and opportunities
Governance recommended disclosure b) Describe management’s role inassessing and managing climate-related risks and opportunities
Strategy recommended disclosure b) Describe the impact of climate-related risks
and opportunities on the organization’s businesses, strategy, and financial planning.

1.4

1.4

Report how your jurisdiction assesses thewider environmental, social and economic
opportunities and benefits of climate action.

Strategy recommended disclosure a) Describe the climate-related risks andopportunities the organization has identified over the short, medium, and long term

2.1

2.1

Has a climate risk and vulnerability
assessment been undertaken for yourjurisdiction? If not, please indicate why.

Risk management recommended disclosure a) Describe the organization’s
processes for identifying and assessing climate-related risks.

Provide details on your climate risk andvulnerability assessment and the processes
in place for identifying, assessing, andmanaging climate-related risks.

Risk management recommended disclosure a) Describe the organization’s
processes for identifying and assessing climate-related risks.

2.1.1

2.1.1

Risk management recommended disclosure b) Describe the organization’s
processes for managing climate-related risks.
Risk management recommended disclosure c) Describe how processes for
identifying, assessing, and managing climate-related risks are integrated into theorganization’s overall risk management.

Page 14 of 20

Provide details on the most significant
climate hazards faced by your jurisdiction.

2.2

Strategy recommended disclosure a) Describe the climate-related risks andopportunities the organization has identified over the short, medium, and long term
Strategy recommended disclosure b) Describe the impact of climate-related risks
and opportunities on the organization’s businesses, strategy, and financial planning.

2.2

Metrics and targets recommended disclosure a) Disclose the metrics used by
the organization to assess climate-related risks and opportunities in line with its
strategy and risk management process.
Does your jurisdiction have a communitywide emissions inventory to report?

Metrics and targets recommended disclosure b) Disclose Scope 1, Scope 2
and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and the relatedrisks.

3.1.1

Provide information on and an attachment (inspreadsheet format)/direct link to your maincommunity-wide GHG emissions inventory.

Metrics and targets recommended disclosure b) Disclose Scope 1, Scope 2
and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and the relatedrisks.

3.1.2

N/A

Provide a breakdown of your communitywide emissions by scope. If the inventory has
been developed using the Global Protocol for
Community Greenhouse Gas Emissions
Inventories (GPC) you will also be requested
to provide a breakdown by sector.

Metrics and targets recommended disclosure b) Disclose Scope 1, Scope 2
and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and the relatedrisks.

3.1.3

N/A

Provide a breakdown of your communitywide emissions in the format of the Common
Reporting Framework.

Metrics and targets recommended disclosure b) Disclose Scope 1, Scope 2
and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and the relatedrisks.

3.1.4

3.1.4

Provide a breakdown of your communitywide emissions by sector.

Metrics and targets recommended disclosure b) Disclose Scope 1, Scope 2
and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and the relatedrisks.

Does your jurisdiction have an adaptation
goal(s) in place? If no adaptation goal is inplace, please indicate the primary reason
why.

Metrics and targets recommended disclosure c) Describe the targets used by
the organization to manage climate-related risks and opportunities and performanceagainst targets.

Report your jurisdiction’s main adaptation
goals.

Metrics and targets recommended disclosure c) Describe the targets used by
the organization to manage climate-related risks and opportunities and performanceagainst targets.

3.1

3.1.1

3.1

5.1

5.1

5.1.1

5.1.1

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6.1

6.1.1

7.1

8.1

8.1.1

9.1

9.2

Does your jurisdiction have an active
greenhouse gas emission reduction target(s)in place? If no active GHG emissions
reduction target is in place, please indicate
the primary reason why.

Metrics and targets recommended disclosure c) Describe the targets used by
the organization to manage climate-related risks and opportunities and performanceagainst targets.

Provide details of your emissions reduction
target(s).

Metrics and targets recommended disclosure c) Describe the targets used by
the organization to manage climate-related risks and opportunities and performanceagainst targets.

Provide details of your jurisdiction's energyrelated targets active in the reporting year. In
addition, you can report other climate-related
targets active in the reporting year.

Metrics and targets recommended disclosure c) Describe the targets used by
the organization to manage climate-related risks and opportunities and performanceagainst targets.

Does your jurisdiction have a climate action
plan or strategy?

Strategy recommended Disclosure c) Describe the resilience of theorganization’s strategy, taking into consideration different climate-related scenarios,
including a 2°C or lower scenario

8.1.1

Report details on the climate action plan or
strategy that addresses climate mitigation
and/or climate adaptation (resilience) in yourjurisdiction.

Strategy recommended Disclosure c) Describe the resilience of theorganization’s strategy, taking into consideration different climate-related scenarios,
including a 2°C or lower scenario

9.1

Describe the outcomes of the mostsignificant adaptation actions your jurisdiction
is currently undertaking. Note that this can
include those in the planning and/or
implementation phase.

Metrics and targets recommended disclosure a) Disclose the metrics used by
the organization to assess climate-related risks and opportunities in line with its
strategy and risk management process.

9.2

Describe the outcomes of the mostsignificant mitigation actions your jurisdiction
is currently undertaking. Note that this can
include those in the planning and/or
implementation phases.

Metrics and targets recommended disclosure a) Disclose the metrics used by
the organization to assess climate-related risks and opportunities in line with its
strategy and risk management process.

6.1

6.1.1

7.1

8.1

Table 1: Mapping of TCFD Recommendations

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Appendix
Further Information on TCFD Reporting and Alignment
Appendix A Additional Resourcesi.

A Guide to Adopting the TCFD Recommendations for Cities, Chartered Professional
Accountants CanadaThis guide highlights actions taken by Canadian cities in response to climate change,demonstrating the climate adaptation leadership underway. It includes process frameworks
for different types of decision-makers within municipalities, including those working in financial
reporting and capital planning, to help cities implement the TCFD recommendations.

ii.

Examples of TCFD-aligned reporting, Chartered Professional Accountants Canada






iii.

City of Calgary: 2023 report, begins on page 95
City of Edmonton: 2023 report, begins on page 126
City of Toronto: 2022 report, begins on page 30
City of Vancouver: 2023 report - begins on page 50
City of Montreal: 2022 report (English version), begins on page 93

TCFD Knowledge Hub, CDP
The TCFD Knowledge Hub gives access to a range of practical content that will help you
understand and implement the TCFD recommendations.

iv.

Summary Guidance Note on the TCFD Recommendations for Cities, States, Regions
and Public Authorities, CDP
CDP’s summary guide on the TCFD introduces the TCFD recommendations and how todisclose climate-related financial risks and opportunities in a standardized, comparable
manner to meet the demands of investors, lenders and stakeholders. The summary guide isalso available in French, Spanish, Bahasa and Portuguese.

v.

Multilevel Climate Action Playbook for Local and Regional Governments, Global
Covenant of Mayors
The resource ‘Multilevel Climate Action Playbook for Local and Regional Governments’ isaccompanied by an annex of research papers and practical resources, as well as arepository of case study examples. This accompanying suite of resources and examples areintended to provide greater detail on the myriad of research papers, publications and casestudies reviewed in the development of this Playbook, and to assist practitioners in carryingout the recommended activities contained within the Playbook.

vi.

C40 Knowledge HubThis C40 produced implementation guide ‘How to disclose your city’s climate-related
financial risks’ outlines the keys steps mainstream climate finance in cities financial
decisions.
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Appendix B Alignment Process
In 2018, CDP redesigned its corporate climate change
questionnaire
to
align
with
the
TCFD
recommendations. CDP’s corporate water security
and forests questionnaires have also been inspired by
the TCFD recommendations and follow a similar
structure, enabling companies to organize theirenvironmental management according to similar
principles of good practice.
The TCFD recommendations were designed fororganizations across all sectors and industries, and allrecommendations have validity across both thecorporate sector and the local government sector.
Therefore, the processes utilized to integrate the
TCFD recommendations into the corporate
questionnaires have informed the integration of the
TCFD recommendations into CDP-ICLEI Track for
cities and the States and Regions Questionnaire.
A series of assessments, workshops andconsultations were launched to evaluate the value andfeasibility of reporting climate-related informationaligned with the recommendations of the TCFD, as
outlined in Figure 2.

2019
Workshops
undertaken toevaluate the value
and feasibility ofintegrating TCFD
recommendations

2020
Mapping assessments
were conductedcomparing questionnairewith the TCFD
recommendations.

2020/21
Stakeholder consultations
on draft TCFD-aligned
questionnaire (November
2020 and October 2021).

2022

Questionnaires launched
In 2020, a mapping assessment was undertaken towith alignment on all four
compare the alignment of CDP-ICLEI Track and therecommendation areas ofStates and Regions Questionnaire with the TCFD
the TCFD.
recommendations. The mapping assessment
Figure 2: Process for TCFD Alignment
highlighted that the questionnaires covered much of
the information required to align with TCFD
disclosure recommendations, particularly across the Metrics and Targets recommendation.

However, it also highlighted there were noticeable gaps, most notably as it pertained tooversight of climate-related issues, the use of scenario analysis and reporting of transition risks.
Following the mapping assessment, a series of recommendations were produced to inform thedevelopment of future questions aligned with the TCFD recommendations.
In 2021, prior to the development of the 2022 Questionnaires, a pre-draft questionnaire
consultation was held. This process included input from a broad network of cities, city networks,
data users and other stakeholders to gather insights on the future direction of the questionnaire.
The consultation addressed many considerations including that of TCFD alignment, which inaddition to the Sustainable Development Goals (SDGs), Global Protocol for Community-scale
Greenhouse Gas Emission Inventories (GPC) and the Global Covenant of Mayors Common
Reporting Framework (GCoM CRF) were identified as the frameworks for which alignment
should be prioritized.
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Based upon the recommendations from the mapping assessment and pre-draft consultation
findings, the 2022 CDP-ICLEI Track and 2022 States and Regions Questionnaire were drafted,
with a post-draft consultation on this content held through October and November 2021. The
consultation informed decisions to enable further flexibility in reporting against certain TCFD
recommendations which were newly introduced to the questionnaire. In practice, this resulted inqualitative data being requested on newly introduced topics, for example on how climate-related
issues have impacted the jurisdiction's financial planning and the risks to the jurisdiction related
to the transition to a low-carbon economy. It also informed the development of detailed reporting
guidance to support responding jurisdiction in responding to TCFD-aligned questions.
This process has ensured that the TCFD recommendations have been adequately andholistically considered throughout the development of both the CDP-ICLEI Track and the States
and Regions Questionnaire. To date only a small number of cities, states and regions havepublicly reported against the TCFD recommendations. As awareness of the relevance and valueof the TCFD recommendations is enhanced amongst reporting city, state and regional
governments it is expected that this number will increase. TCFD-aligned response data andindicators will continue to be analyzed and incrementally enhanced to further reflect the subnational government perspective in reporting against the TCFD recommendations as reporting
maturity increases.

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Appendix C CDP-ICLEI Track
CDP-ICLEI Track
CDP-ICLEI Track is the world’s leading climate reporting platform and progress accountability mechanism for
local governments and their cities, to help them understand their impact and take action. In 2023, over 1,100
cities reported over 8,000 urban sustainability actions such as energy efficiency and increased green spaces.
With the new questionnaire, CDP and ICLEI will be tracking cities’ progress for the UN-backed climate
campaigns, Race to Zero and Race to Resilience, which bring cities, businesses and investors together tocreate a zero-carbon future. The questionnaire will also provide data for the Global Stocktake, a purpose-driven
and evidence-focused mechanism helping non-party stakeholders implement the goals of the Paris Agreement.

CDP
CDP is a global non-profit that runs the world’s environmental disclosuresystem for companies, cities, states and regions. Founded in 2000 andworking with more than 700 financial institutions with over $142 trillion in
assets, CDP pioneered using capital markets and corporate procurement tomotivate companies to disclose their environmental impacts, and to reducegreenhouse gas emissions, safeguard water resources and protect forests. Over 24,000 organizations aroundthe world disclosed data through CDP in 2023, with more than 23,000 companies – including listed companies
worth two thirds global market capitalization - and over 1,100 cities, states and regions. Fully TCFD aligned,
CDP holds the largest environmental database in the world, and CDP scores are widely used to drive
investment and procurement decisions towards a zero carbon, sustainable and resilient economy. CDP is afounding member of the Science Based Targets initiative, We Mean Business Coalition, The Investor Agenda
and the Net Zero Asset Managers initiative.

ICLEI
ICLEI – Local Governments for Sustainability is a global network of more than
2,500 local and regional governments committed to sustainable urban
development. Active in 125+ countries, we influence sustainability policy and drive
local action for low emission, nature-based, equitable, resilient and circulardevelopment. Our members and team of experts work together through peer
exchange, partnerships and capacity building to create systemic change for urban
sustainability.

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