SUMMARY OF IMPLEMENTATIONAND USE SURVEY RESULTS

October 2022

TCFD Implementation and Use Survey

Table of Contents
Background, Approach, and Respondent Demographics

4–8

Key Themes from Survey Results

9 – 12

Preparer Perspectives

13 – 20

Implementation of the TCFD Recommendations and Reasons for Implementing
Location of TCFD Disclosures
Disclosure of the TCFD Recommendations by Year
Sequencing of TCFD Recommendations
Ease of Implementation
Issues Identified in Implementation
Impact of TCFD Recommendations
User Perspectives
Use of Climate-Related Disclosures in Financial Decision-Making
Usefulness of Recommended Disclosures
Improving the Usefulness of Climate-Related Disclosures
Trends in Climate-Related Financial Disclosures
Other Perspectives
Ease of Implementation
Issues Identified in Implementation
Improving the Usefulness of Climate-Related Disclosures
Trends in Climate-Related Financial Disclosures

14
15
16
17
18
19
20
21 – 26
22 – 23
24
25
26
27 – 31
28
29
30
31

2

1
BACKGROUND, APPROACH, ANDRESPONDENT DEMOGRAPHICS

TCFD Implementation and Use Survey

BackgroundAs part of its 2022 status report, the Task Force evaluated progress associated with TCFD implementation overthe past five years—including progress relative to milestones identified in 2017.
To support its assessment of progress associated with the key milestones, the Task Force conducted a survey to better understandcompanies’ implementation of the TCFD recommendations over the past five years as well as investors and others’ views on theusefulness of climate-related financial disclosure.

Milestones over Five-Year Period

Implementation and Use Survey

Adoption Volume

Disclosures become more complete, consistent,
and comparable, and there is more appropriate
pricing of climate-related risks and opportunities

4

The number of companies implementing therecommendations grows, and the types of
3
information disclosed are further developed
Preparers and users of disclosure2
increasingly view climate-related
issues as mainstream business andinvestment considerations

Final TCFD report
released

1 Companies increasingly disclose climaterelated information in financial filings# Indicates a possible milestone
Five Year Time Frame

4

TCFD Implementation and Use Survey

Survey Purpose and Approach
In March 2022, the Task Force issued a comprehensive survey to better understand the status of
implementation of the TCFD recommendations and associated challenges and to obtain views from users ofclimate-related financial disclosures and others on the usefulness, availability, and quality of such disclosures.

Approach▪ The survey consisted of several questions designed toelicit views on TCFD implementation efforts and the useof climate-related financial disclosures over the past five
years.
▪ Survey respondents were directed to a subset of questions
based on how they described their role or responsibilities
in the context of climate-related financial disclosures.

Options for Role or Responsibilities
Contribute to producing disclosures for company (preparer)
Make decisions or allocate capital based on disclosures (user)
Assist companies with producing disclosures
Provide products or services that support disclosure
Develop rules, standards, or guidelines for disclosure

Have other interests in disclosure

Survey Responses▪ The Task Force received 399 responses to the survey
from preparers of climate-related financial disclosures,users of such disclosures, and a variety of otherinterested parties, including organizations that assist
preparers with climate-related disclosures (e.g., NGOs,consultants), industry associations, academia, and the
public sector.
▪ The summaries of themes and charts in thispresentation are based solely on the responses to thesurvey. It is important to note that the survey was
distributed to organizations and individuals thatsigned up for updates on the Task Force’s website.1
NOTE ON SURVEY RESULTS
Given the composition of respondents, the survey results
should not be extrapolated to a broader population ofcompanies disclosing climate-related financial information orusers of such disclosures.

1. Since the survey was distributed to companies and other organizations that signed up for updates on the Task Force’s work as well as
posted on the Task Force’s website, the survey results are subject to a self-selection bias towards respondents who are more focused on
climate-related issues and the Task Force’s work. In fact, 98% of respondents indicated they were familiar with the TCFD recommendations.

5

TCFD Implementation and Use Survey

Respondent Demographics: Role, Organization Type, and Region
Over half (57%) of survey respondents indicated they contribute to producing climate-related financial
disclosures for their organizations (preparers), just over half (51%) indicated they are from non-financial
industries, and a plurality (40%) indicated they are headquartered in Europe.
Composition of Survey Respondents
By Organization TypeBy Role or Responsibility
Percent of Respondents

Percent of Respondents

3%

By Region

2% 2%

2%

Percent of Respondents

8%

3%
5%

7%
12%

9%
Preparer,
57%

9%
User,
10%

Financial,
28%

17%

NonFinancial,
51%

Europe,40%

Asia Pacific,
35%

Contribute to producing disclosures (preparer)

Non-Financial Industries

EuropeMake decisions/allocate capital using disclosures (user)

Financial Services

Asia Pacific

Assist companies with producing disclosures

Consulting and Auditing Firms

North America

Provide products or services that support disclosure

Non-Governmental Organization

Middle East and Africa

Develop rules, standards, or guidelines for disclosure

Academic or Research Institution

Latin America

Have other interests in disclosure

Government or Public Sector
Stock Exchange
Base size: 399

6

TCFD Implementation and Use Survey

Respondent Demographics: Sector and Industry
More than half of respondents identified themselves as preparers or users of climate-related financial
disclosures. The Task Force asked these respondents to provide information on their sector and industry. Of all
preparer respondents, 70% represented non-financial industries.
Percent of Respondents by Sector (268)Preparers (226)

26%

70%

Users (42)93%

7%
Legend:Number of Financial Services Companies (98)
Asset Manager
14
Bank
Insurance Company
6 2
Investment Company 2 4
Pension or Retirement Fund 1 2
Other Financial 3

29
33

2

Number of Other Organizations (9)Government or Public Sector
Stock Exchange

4%

5
4

Financial

Non-financial

Other

Number of Non-Financial Companies (161)
Materials
Consumer Discretionary
Real Estate
IT and Communications
Capital Goods
Consumer Staples
Utilities
EnergyTransportation
Health Care
Other Non-Financial
Legend:

33
22
17
17
15
1
14
12
1
10
10

$413 BILLION
average asset size of banks
and insurance companies$112 BILLION
average assets
under management ofasset managers$11 BILLION
average annual revenue of
non-financial companies

5
3 1
Preparers

Average Size of Preparerand User Respondents

Users

These averages are based on a subset ofthe 268 respondents that identified as
preparers or users. Specifically, theaverages are based on the 54% of
respondents that provided theirorganization names and for which
public information was available.

Note: The numbers in parentheses represent the sizes of the review populations.

7

TCFD Implementation and Use Survey

Respondent Demographics: Responsibilities, Seniority, andSupporter Status
Nearly half (46%) of survey respondents indicated their primary responsibilities were related to sustainability,
and over half (56%) indicated they were part of the board, executive management, or senior management.
Area of Responsibility
Number of Respondents

Seniority of Respondents
Percent of Respondents
26%

30%

28%
16%

Board or Executive
Management

SeniorManagement

Management

Staff

Legend:Sustainability

Corporate Reporting

Risk Management

Academic or Industry Expert

Consulting

Administration

Investment or Asset Management

Business Line or Product Management

Board Member

Legal

Investor Relations

Other

General Management

Compliance

Strategy

Technology

Finance

Government or Regulatory Affairs
Base size: 399

82
KEY THEMES FROM SURVEY RESULTS

TCFD Implementation and Use Survey

Key Themes: Preparers of Disclosure
The most common and significant themes from respondents that identified as PREPARERS are described below.

Vast majority are implementing TCFD
Ninety-one percent (91%)
of companies indicated they
have implemented or are
implementing the TCFD
recommendations

Of these respondents,▪ 86% currently disclose in linewith at least one of the 11
recommended disclosures, and▪ the remaining 14% plan todisclose in the future
Base size: 226

Most report in .annual reports,
sustainability reports, or both1
Location of FY2021 TCFD Disclosures

Percent

Financial filings, annual reports, or integrated reports

71%

Sustainability reports

70%

Several identified specific challenges
related to TCFD implementation
Selecting relevant scenarios and identifying key inputs andparameters as part of conducting climate-related scenario
analysis.

Collecting data across the value chain for estimating Scope 3
GHG emissions.

Developing processes for identifying, assessing, andmanaging climate-related risks and integrating climaterelated risks into existing risk management processes.
Base size: 206

Base size: 153

Many indicated implementing
strategy resilience is difficult

Most indicated reason for implementing TCFD isbecause climate-related issues are material

Nearly 90% of companies rated the resilience of strategy
under different climate-related scenarios as somewhat
difficult or very difficult to implement.

Respondents identified climate-related issues being material
for company (85%) and investor requests (77%) as the top two
reasons for implementing the TCFD recommendations.

Base size: 206

Base size: 206

1. While all 206 preparers that indicated they have implemented or are implementing the TCFD recommendations received the question
about the location of their TCFD reporting, only 153 provided a response for the location of their fiscal year 2021 reporting.

10

TCFD Implementation and Use Survey

Key Themes: Users of Disclosure
The most common and significant themes from respondents identified as USERS are described below.
Vast majority use disclosures inmaking financial decisions
Ninety percent (90%) of respondents
indicated they have incorporated
climate-related financial disclosuresin their financial decision-making
processes

Many identified ways to improveclimate-related financial disclosures

Of these respondents, 66%
indicated such disclosures
factor into the way they
price financial assets
Base size: 42

Most use disclosures for investing decisions1
Use disclosures in investing decisions

86%

Use disclosures in lending decisions

19%

Include standardized, industry-specific climate-related metrics

79%

Use standard scenario for assessing the resilience of strategies
to climate change

71%

Report targets in a consistent way across companies

71%

Increase number of companies disclosing climate-related
information

71%

Disclose actual and potential financial impacts of climaterelated issues on company

69%

Base size: 42

Base size: 42

At least 90% of users rated 7 of the 11 recommended disclosures as useful in making financial decisions

98% The impact of climate-related risks or opportunities on the company's businesses, strategy, and/or financial planning93%▪ Management’s role in assessing and managing climate-relatedrisks or opportunities▪ The company’s climate-related risks or opportunities▪ Processes for managing climate-related risks

90%▪ Integration of climate-related risks into the overall risk
management▪ Processes for identifying and assessing climate-related risks▪ The metrics used to assess climate-related risks or opportunities
Base size: 42

1. The significant difference between the percent of organizations using climate-related financial disclosures for investing decisions versus
lending decisions is likely driven by the composition of user respondents as 69% came from the asset management industry.

11

TCFD Implementation and Use Survey

Key Themes: Other
Other key themes are described below.
ALL RESPONDENTS EXCEPT PREPARERS1USER RESPONDENTS

Most identified an increase in availability andquality of disclosures since 2017

Most users (83%) have seen climate-related issues
affecting market prices
Not Sure, 7%

Increase in availability of disclosures

95%

Increase in quality of disclosures

88%

Types of Market Prices Affected2

No,
10%

Base size: 173

Price or Value of Financial Assets

71%

Lending or Insurance Rates

20%

Other

Yes,
83%

RESPONDENTS THAT SUPPORT PREPARERS

10%

Base size: 42

Many identified improvements needed inclimate-related financial disclosures

PREPARER RESPONDENTS

Increase number of companies disclosing climate-related
information

76%

Include standardized, industry-specific climate-related metrics

73%

Most preparers (76%) have seen climate-related
issues affecting market prices
Types of Market Prices Affected2

Use standard scenario for assessing the resilience of strategies
to climate change

70%

Report targets in a consistent way across companies

68%

Disclose critical input parameters, assumptions, and analyticalchoices for climate-related scenarios used59%

Not Sure,
14%
No,
10%

Price or Value of Financial Assets
Lending or Insurance Rates

Yes,
76%

Base size: 37

1. This includes users of climate-related financial disclosures, support preparers, standard setters and guidance developers, governments, stock
exchanges, and other groups.
2. Since respondents could select multiple options, the sum is greater than 100%.

57%
45%

Commodity Prices

6%

Other

5%
Base size: 206

12

3
PREPARER PERSPECTIVESTCFD Implementation and Use Survey

Implementation of the TCFD Recommendations and Reasons
91% of preparers indicated that they have decided to implement the TCFD recommendations in part or in full.
These preparers cited climate-related issues being material for their company and investors requesting climaterelated information as the top two reasons for implementing the TCFD recommendations.
Implementation of the TCFD Recommendations
Percent and Number of Respondents

Decision on Implementing the TCFD Recommendations
Decided to implement ALL

50%, 113

Decided to implement SOME

Undecided

41%, 93

Reasons for Implementing the Recommendations1
Climate-related issues are material for my company

85%

Investors are requesting climate-related information

77%

Corporate citizenship/reputational benefits

59%

Senior management made it a priority

53%

Our peers are implementing the recommendations

9%, 20

TCFD reporting is required by law or regulation

Decided not to Implement

40%
26%

1. Respondents could select multiple reasons. Base size (respondents implementing all or some): 2060%, 0Base size: 226

14

TCFD Implementation and Use Survey

Location of TCFD Disclosures for Fiscal Years 2017-2021
Climate-related reporting in financial filings, annual reports, or integrated reports grew 26 percentage points
from FY2017 to FY2021. Additionally, over 60% of preparers reported in sustainability reports all five years.

Location of TCFD Disclosures by Year for Fiscal Years 2017-2021
Percent of Respondents
Report Type1FY2017(33)2FY2018(37)FY2019(53)

FY2020(94)

FY2021(153)

Financial Filing, Annual Report, or Integrated Report

45%

49%

64%

65%

71%

Sustainability Report

67%

62%

70%

66%

70%

Climate-Specific Report

9%

22%

21%

33%

33%

Other

15%

14%

13%

9%

9%

Average # of Reports per Respondent

1.5

1.6

1.9

2.0

2.1

1. Respondents could select multiple report types.
2. The numbers in parentheses represent the number of respondents reporting for the year (base size).

Legend:Low to high percentage of responses

15

TCFD Implementation and Use Survey

Disclosure of the TCFD Recommendations by Year
Companies disclosing information aligned with each of the 11 recommended disclosures increased each year.
The largest increase between FY2017 and FY2021, at 69 percentage points, was related to governance.
Disclosure of the TCFD Recommendations by Year for Fiscal Years 2017-2021
Percent of Companies Disclosing

Pt. Change‘17 – ’21

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

Recommendation

Recommended Disclosure

Governancea. Board Oversight

69

6%

9%

20%

43%

75%

b. Management's Role

69

8%

11%

22%

44%

77%

a. Risks and Opportunities

66

9%

11%

19%

42%

75%

b. Impact on Organization

59

4%

5%

13%

33%

63%

c. Resilience of Strategy

51

2%

3%

8%

23%

53%

a. Risk ID & Assessment Processes

66

7%

10%

19%

37%

73%

b. Risk Management Processes

66

7%

9%

18%

37%

73%

c. Integration into Risk Management

62

6%

7%

17%

35%

68%

60

12%

15%

23%

40%

72%

b. Scope 1,2, 3 GHG Emissions

54

26%

30%

38%

52%

80%

c. Climate-Related Targets

52

10%

13%

19%

34%

62%

Strategy

Risk Management

Metrics and Targets a. Climate-Related Metrics

Base size: 206
Legend:Low to high percentage of responses

16

TCFD Implementation and Use Survey

Sequencing of TCFD Recommendations
Early adopters indicated that they disclosed five of the 11 recommended disclosures, on average, in their firstyear of TCFD reporting, compared to eight recommended disclosures for recent adopters.
Sequencing in Disclosing the TCFD Recommendations1

Early Adopters

Recent Adopters

Percent of Companies Disclosing2

Percent of Companies Disclosing

Recommendation

Recommended Disclosure

Governancea. Board Oversight48%

b. Management's Role

53%

a. Risks and Opportunities

47%

Strategy33%b. Impact on Organizationc. Resilience of Strategy
Risk Management

Metrics and Targets

First Year

9% 1%

8% 13%

87%

6% 2%

12% 13%83%

13%

11% 14%

20% 14% 11%

64%

22%

62%

19% 12%

3%

6%

a. Risk ID & Assessment Processes

44%

12%11%

84%

9% 2%

b. Risk Management Processes

42%

10%11%

85%

10%1%

c. Integration into Risk Management37%

12% 14%52%

a. Climate-Related Metrics

72%

20% 3%

77%

14% 5%

85%

6% 5%

9% 13%

87%b. Scope 1,2 GHG Emissions

Legend:85%

8% 13%

5% 5%

b. Scope 3 GHG Emissions

48%

8%10%

48%

16%

c. Climate-Related Targets

42%

13% 11%

49%

6% 5%

20%

40%

Second Year

Third Year

0%

60%

80%

100%

Base size: 118

0%

20%

40%

7%

60%

80%

100%

Base size: 86

1. The total number of respondents represented in the charts is 204 rather than 206 as two of the respondents did not indicate a specific year for when they planned to disclose any of therecommended disclosures.
2. The total for each recommended disclosure is less than 100% because respondents could indicate reporting will begin after the third year or they were undecided on if or when to report.

Note: Early adopters are companies that begin disclosing in fiscal years 2017, 2018, 2019, or 2020, whereas recent adopters arecompanies that began disclosing in fiscal year 2021 or later.

17

TCFD Implementation and Use Survey

Ease of Implementation of TCFD Recommendations
Most preparers indicated that implementing resilience of strategy was difficult, and around 70% of preparers
rated the recommended disclosures on governance as very easy or relatively easy to implement.
Implementation Rating by TCFD Recommendation
Percent of Respondents1
Recommendation

Recommended Disclosure

Very
Easy

Governancea. Board Oversight

13%

59%

24%

2%

b. Management's Role

13%

57%

26%

3%

a. Risks and Opportunities

4%

36%

47%

12%

b. Impact on Organization

2%

12%

51%

32%

c. Resilience of Strategy

1%

8%

36%

52%

a. Risk ID & Assessment Processes

4%

44%

41%

9%

b. Risk Management Processes

4%

36%

49%

10%

c. Integration into Risk Management

3%

34%

43%

17%

a. Climate-Related Metrics

5%

36%

39%

18%

b. Scope 1,2 GHG Emissions

15%

49%

28%

7%

b. Scope 3 GHG Emissions

4%

18%

28%

43%

c. Climate-Related Targets

4%

23%

43%

26%

Strategy

Risk Management

Metrics and Targets

Relatively
Easy

Somewhat
Difficult

Very
Difficult

Base size: 206
1. The total for each recommended disclosure may be less than 100% because respondents could select “not applicable.”

Legend:Low to high percentage of responses

18

TCFD Implementation and Use Survey

Issues Identified in Implementing the TCFD Recommendations
Just over half of preparer respondents identified specific issues related to the implementation of the Strategy
and Metrics and Targets recommendations.
Most Cited Issues

Issues Identified by TCFD Recommendation
Percent of Respondents

Governance Issues
Yes

Lack of expertise on climate-related issues within theboard and senior management

20%

No

80%

Strategy Issues
Yes

51%

No

49%

Conducting climate-related scenario analysis such as
selecting relevant scenarios and identifying key inputs

Risk Management Issues
Yes

32%

No

Developing processes for identifying, assessing, andmanaging climate-related risks

68%

Metrics and Targets Issues
Yes
No

52%

Scope 3 GHG emissions data collection across thevalue chain

48%
Base size: 206

19

TCFD Implementation and Use Survey

Effects of TCFD Recommendations
All preparers were asked how the TCFD recommendations have affected their companies, and 83% indicatedthey have encouraged the company to enhance its climate-related disclosures.

Effects of TCFD Recommendation
Percent of Respondents1
83%

Encouraged company to enhance climate-related disclosures

79%

Increased board/senior management attention on climate-related issues
Improved risk management of climate-related issues

71%

Improved understanding of climate-related risks and opportunities impact

70%
65%

Increased investor attention on climate-related issues
Increased or improved company interaction with parties in supply or value chain

33%

Increased interaction with or attention from regulators

1. Respondents could select multiple responses.

23%

Other

3%

No effect3%
Base size: 226

20

4
USER PERSPECTIVESTCFD Implementation and Use Survey

Use of Climate-Related Disclosures in Financial Decision-Making
Ninety percent (90%) of users indicated that they use climate-related financial disclosures in decision-making,with the majority indicating they use disclosures in investing decisions.
Use Disclosures in Decision-Making

Types of Decisions in which Disclosures are Used1

Percent of Respondents

Percent of Respondents
Investing

No,
10%

86%

LendingYes, 90%

19%

Insurance Underwriting

5%

Credit Rating

7%

Other

2%
Base size: 42

1. Since respondents could select multiple options, the sum across decision types is greater than 100%.

Use of Climate-Related Disclosures in Decision-Making by Industry1
Number of Respondents
Asset Management

Breakdown of Respondents

26

Investment
Asset Manager
Investment Company
Pension or Retirement Fund
Insurance Company
Bank
Capital Goods
Utilities

29
5
2
2
2
1
1
Base size: 42

4

11 2

4

Investing

Banking2

Insurance

11

Pension or Retirement

2

Capital Goods

1

Credit Rating

Utilities

1

Other

2

1. Respondents could select multiple types of uses (investing, lending, etc.).

11

Lending
Insurance Underwriting

Base size: 42

Note: Given the relatively small sample size of user respondents, the Task Force cautions that the results may not be representative of thebroader population of users of climate-related financial disclosures.

22

TCFD Implementation and Use Survey

Use of Climate-Related Disclosures in Financial Decision-Making
Nearly 70% of users indicated climate-related disclosure has affected a financial decision they have made, andjust over 60% indicated they understand their exposure to climate-related risks very well or somewhat wellbased on currently available disclosures.
Climate-Related Disclosure Has Affected a Financial Decision

Use Third Parties for Climate-Related Information

Percent of Respondents

Percent of Respondents1

Yes
No

69%
31%

Yes, we use climate-related
information from third parties

29%

Yes, we engage third parties to help
analyze climate-related info

29%
60%

No

1. Respondents selecting “Yes” could select one or both “Yes” options. As a result, thesum across the three options is greater than 100%.

Level of Understanding of Exposure to Climate-Related Risks with Currently Available Disclosures
Percent of Respondents
Type of Climate-Related Risk

Very
Well

Somewhat
Well

Not Very
Well

Not Wellat AllPhysical Risks (acute and chronic)

26%

36%

36%

2%

Transition Risks (policy, legal, technology, market, and reputation)

17%

48%

33%

2%

Legend:Low to high percentage of responses
Base size: 42

Note: Given the relatively small sample size of user respondents, the Task Force cautions that the results may not be representative of thebroader population of users of climate-related financial disclosures.

23

TCFD Implementation and Use Survey

Usefulness of Recommended Disclosures
With the exception of resilience of strategy and Scope 3 GHG emissions, 50% or more of user respondents rated
each recommended disclosure as very useful.
Usefulness Rating by Recommendation1
Percent of Respondents
Recommendation

Recommended Disclosure

Very
UsefulSomewhat
UsefulNot Very
UsefulNot atAll Useful

Governancea. Board Oversight

55%

28%

17%

0%

b. Management's Role

60%

33%

7%

0%

a. Risks and Opportunities

55%

38%

7%

0%

b. Impact on Organization

50%

48%

2%

0%

c. Resilience of Strategy

38%

48%

12%

2%

a. Risk ID & Assessment Processes

64%

26%

10%

0%

b. Risk Management Processes

67%

26%

5%

2%

c. Integration into Risk Management

62%

29%

7%

2%

a. Climate-Related Metrics

57%

33%

10%

0%

b. Scope 1,2 GHG Emissions

64%

24%

10%

2%

b. Scope 3 GHG Emissions

38%

43%

17%

2%

c. Climate-Related Targets

52%

29%

17%

2%

Strategy

Risk Management

Metrics and Targets

Base size: 42
Legend:Low to high percentage of responses

1. Given the relatively small sample size of user respondents, the Task Force cautions that the results may not be representative of the broader
population of users of climate-related financial disclosures.

24

TCFD Implementation and Use Survey

Improving the Usefulness of Climate-Related Disclosures
Users indicated that climate-related disclosures could be made more useful in several ways, with the top
improvement identified as the inclusion of standardized industry-specific metrics.

Areas for Improvement in Climate-Related Disclosures1
Percent of Respondents1
Include standardized, industry-specific climate-related metrics

79%

Report targets in a consistent way across companies

71%

Use standard scenario for assessing the resilience of strategies to climate change

71%

Increase number of companies disclosing climate-related information

71%

Disclose actual and potential financial impacts of climate-related issues on company

69%

Disclose critical input parameters, assumptions, and analytical choices for climate-related scenarios

60%
55%

Centralize the location of disclosure to include all relevant information in a single report

Other
1. Respondents could select multiple responses

14%
Base size: 42

Note: Given the relatively small sample size of user respondents, the Task Force cautions that the results may not be representative of thebroader population of users of climate-related financial disclosures.

25

TCFD Implementation and Use Survey

Trends in Climate-Related Financial Disclosures1
Respondents noted an increase in the availability and quality of climate-related disclosures over the past five
years.
Increased Availability of Climate-Related Disclosures in Past 5 Years
Percent of Respondents
Yes, a significant increase

45%

Yes, a moderate increase

38%

Yes, a minimal increase12%

Not sure

0%

No

5%

Base size: 42

Increased Availability of TCFD-Aligned Disclosures in Past 5 Years1
Percent of Respondents
Yes, a significant increase

29%

Yes, a moderate increase

44%

Yes, a minimal increase22%

Not sureNo

5%0%

Base size: 41

Improvement in Quality of Climate-Related Disclosures in Past 5 Years
Percent of Respondents
Yes, a significant improvement

12%
64%

Yes, a moderate improvement
21%

Yes, a minimal improvement
Not sureNo

2%0%

Base size: 42

1. This question was asked of respondents that indicated they were familiar with the TCFD recommendations.

Note: Given the relatively small sample size of user respondents, the Task Force cautions that the results may not be representative of thebroader population of users of climate-related financial disclosures.

26

5
OTHER PERSPECTIVESTCFD Implementation and Use Survey

Ease of Implementation of Recommendations
Over 50% of organizations that support preparers with disclosure indicated implementing resilience of strategy
was very difficult, and 50% indicated the same for Scope 3 GHG emissions.

Implementation Rating by Recommendation
Percent of Respondents1
Recommendation
Recommended Disclosure

Very
Easy

Relatively
Easy

Somewhat
Difficult

Very
Difficult

Governancea. Board Oversight

9%

62%

24%

3%

b. Management's Role

3%

68%

24%

3%

a. Risks and Opportunities

0%

47%

41%

9%

b. Impact on Organization

0%

24%

59%

15%

c. Resilience of Strategy

0%

18%

18%

56%

a. Risk ID & Assessment Processes

0%

47%

35%

12%

b. Risk Management Processes

0%

41%

35%

18%

c. Integration into Risk Management

0%

38%

35%

21%

a. Climate-Related Metrics

6%

29%

44%

15%

b. Scope 1,2 GHG Emissions

0%

47%

26%

15%

b. Scope 3 GHG Emissions

0%

18%

18%

50%

c. Climate-Related Targets

0%

29%

41%

24%

Strategy

Risk Management

Metrics and Targets

Base size: 34
1. The total for each recommended disclosure may be less than 100% because respondents could select “not applicable.”Note: Support preparers assist companies with producing disclosures. Given the relatively small sample size of user respondents, the Task
Force cautions that the results may not be representative of the broader population of support preparers of climate-related financial
disclosures.

Legend:Low to high percentage of responses

28

TCFD Implementation and Use Survey

Issues Identified in Implementing the TCFD Recommendations
A majority of organizations that support preparers with disclosure identified specific issues related to
implementing the TCFD recommendations.
Most Cited Issues

Issues Identified by TCFD Recommendation
Percent of Respondents

Governance Issues
Yes

Lack of expertise on climate-related issues within
the board and senior management

35%
65%

No

Strategy Issues
62%

Yes
No

Conducting climate-related scenario analysis

38%

Risk Management Issues
No

Lack of expertise on climate-related risk
management processes

53%

Yes
47%

Metrics and Targets Issues
Yes
No

56%

Scope 3 GHG emission data collection across thevalue chain and setting targets

44%
Base size: 34

Note: Given the relatively small sample size of user respondents, the Task Force cautions that the results may not be representative of thebroader population of support preparers of climate-related financial disclosures.

29

TCFD Implementation and Use Survey

Improving the Usefulness of Climate-Related Disclosures
Over three quarters (76%) of organizations that support preparers with disclosure indicated an increase in thenumber of companies disclosing climate-related information would improve the usefulness of disclosures.

Areas for Improvement in Climate-Related Disclosures
Percent of Respondents1
76%

Increase number of companies disclosing climate-related information
Include standardized, industry-specific climate-related metrics73%

Use standard scenario for assessing the resilience of strategies to climate change

70%

Report targets in a consistent manner across companies

68%
59%

Disclose critical input parameters, assumptions, and analytical choices for climate-related scenarios
Disclose actual and potential financial impacts of climate-related issues on company

49%

Centralize the location of disclosure to include all relevant information in a single report
Other
1. Respondents could select multiple responses.

41%
11%
Base size: 37

Note: Given the relatively small sample size of user respondents, the Task Force cautions that the results may not be representative of thebroader population of support preparers of climate-related financial disclosures.

30

TCFD Implementation and Use Survey

Trends in Climate-Related Financial Disclosures1
Respondents noted an increase in the availability of climate-related disclosures along with an improvement in
the quality of disclosures, with the majority of users seeing a moderate improvement.
Increased Availability of Climate-Related Disclosures in Past 5 Years
Percent of Respondents
Yes, a significant increase

46%

Yes, a moderate increase

38%

Yes, a minimal increase
Not sure

11%
3%

No

2%

Base size: 173

Increased Availability of TCFD-Aligned Disclosures in Past 5 Years1
Percent of Respondents
Yes, a significant increase

25%

Yes, a moderate increase

46%

Yes, a minimal increase17%

Not sure

9%

No

3%

Base size: 168

Improvement in Quality of Climate-Related Disclosures in Past 5 Years
Percent of Respondents
Yes, a significant improvement

18%

Yes, a moderate improvement

53%

Yes, a minimal improvement17%

Not sureNo

7%
5%

Base size: 173

1. This question was only asked to non-preparers that indicated they were familiar with the TCFD recommendations.
Note: These questions were asked of all survey respondents except preparers. This includes users of climate-related financial disclosures,support preparers, standard setters and guidance developers, governments, stock exchanges, and other groups.

31