Task Force on Climate-related
Financial Disclosures
Summary of Key Changes and Clarifications
to the TCFD Report and Annex
June 2017

SUMMARY OF KEY CHANGES AND CLARIFICATIONSBelow is a summary of key changes and clarifications to the Task Force’s report and annex.

Topic

Key Changes and Clarifications

Application ofRecommendations• Added explanation that the Task Force’s recommendations were developed to apply
broadly across sectors and jurisdictions and should not be seen as superseding
national disclosure requirements.
• Highlighted that organizations should make financial disclosures in accordance with
their national disclosure requirements.
• Added that if certain elements of the recommendations are incompatible withnational disclosure requirements, the Task Force encourages organizations todisclose those elements in other official company reports.

Principle ofMaterialityand Locationof Disclosure• Clarified which recommendations are subject to materiality assessment.
• Disclosures related to the Strategy and Metrics and Targets recommendations are subject tomateriality assessment.
• Disclosures related to Governance and Risk Management recommendations should be
included in annual financial filings, independent of an assessment of materiality.

2SUMMARY OF KEY CHANGES AND CLARIFICATIONS (CONTINUED)
Topic

Key Changes and Clarifications

Principle ofMaterialityand Locationof Disclosure• Defined “financial filings” as follows:(continued)

Financial filings refer to the annual reporting packages in which organizations are required todeliver their audited financial results under the corporate, compliance, or securities laws ofthe jurisdictions in which they operate. While reporting requirements differ internationally,financial filings generally contain financial statements and other information such as
governance statements and management commentary.

• Encourage organizations in the four non-financial groups that have more than one
billion U.S. dollar equivalent (USDE) in annual revenue to consider disclosing
information related to strategy and metrics and targets in other official company
reports when the information is not deemed material and not included in financialfilings.
• Clarified that “other official company reports” are those that are issued at least
annually, widely distributed and available to investors and others, and subject tointernal governance processes that are the same or substantially similar to thoseused for financial reporting.
FinancialImpacts• Added a section to the annex to address public feedback requesting clearer linkingof climate-related risks and opportunities and associated financial impacts.

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SUMMARY OF KEY CHANGES AND CLARIFICATIONS (CONTINUED)
Topic

Key Changes and Clarifications

ScenarioAnalysis• Simplified recommended disclosure (c) under Strategy (related to scenarios) andthe related guidance to focus on resiliency of an organization’s strategy to climaterisks and opportunities.
• Clarified organizations should consider scenarios with increased physical climaterelated risks where such risks are relevant.
• Established a threshold for organizations that should consider conducting morerobust scenario analysis to assess the resilience of their strategies (organizations
with annual revenue greater than 1B USDE in the four non-financial groups).

Remuneration • Expanded the guidance on remuneration to all organizations that have identified
climate-related risks as material.
SupplementalGuidance• For asset owners and asset managers, changed the recommended carbon
footprinting metric from GHG emissions associated with investments normalized forevery million of the reporting currency invested to a weighted average carbon
intensity metric.
• For non-financial groups, streamlined the supplemental guidance to reduce
redundancy and streamlined non-financial metrics tables by focusing on key
metrics, eliminating redundant metrics, and ensuring consistent terminology.

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CHANGES TO THE TASK FORCE’S RECOMMENDATIONS
Changes to the recommendations and recommended disclosures are reflected in blue text.

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