Task Force on
Climate-related
Financial Disclosures
Overview

March 2021

Contents

B

The Need for Climate-Related Financial Disclosure2

Potential Financial Implications of Climate Change

4

The Task Force on Climate-related Financial Disclosures

6

Demand for Climate-Related Financial Disclosure

10

Climate-Related Risks and Opportunities

12

The TCFD Recommendations

14

TCFD Recommended Disclosures

16

Guidance on Implementing the TCFD Recommendations

20

Sector-Specific Supplemental Guidance

22

Summary of 2020 Guidance and Other Work

24

Implementing the TCFD Recommendations

26

Benefits of Implementation28

Select Resources on the TCFD Recommendations

30

TCFD Supporters

32

Overview of the TCFD 2020 Status Report

34

Examples of Momentum for the TCFD

36
1

The Need for Climate-Related Financial Disclosure

The Need for Climate-Related
Financial Disclosure
The large-scale and complex natureof climate change makes it uniquely
challenging, especially in the context
of economic decision making.
Further, many companies haveincorrectly viewed the implicationsof climate change to be relevant
only in the long term and, therefore,
not necessarily relevant to decisions
made today. Those views, however,are changing as more information
becomes available on the potential
widespread financial impacts ofclimate change.
In December 2019, Bank of England
Governor Mark Carney noted that“changes in climate policies, newtechnologies and growing physicalrisks will prompt reassessments ofthe values of virtually every financial
asset.” Companies and providers ofcapital, therefore, should consider

their longer-term strategies and mostefficient allocation of capital in lightof these changes. Organizations thatinvest in activities that may not be
viable in the longer term will likely
be less resilient to the transition to alower-carbon economy — and theirinvestors will likely experiencelower returns.

“Now is the time to ensure that every financial
decision takes climate change into account.”– Mark Carney, UN Special Envoy on Climate Action and Finance,
Governor of the Bank of England, December 2019Mark Carney, UN Special Envoy on Climate Action and Finance and Michael R. Bloomberg, TCFD Chair

Compounding the effect on longer-term
returns is the risk that present
valuations do not adequately factor
in climate-related risks because of
insufficient information. Investors,
lenders, and insurance underwriters
need adequate information on
how companies are preparing for alower-carbon economy. More effective,
clear, and consistent climate-related
disclosure is needed from companies
around the world.

Natural catastrophe losses intensified
by climate change (2017-2019)1
Value at risk as a result of climate change
to manageable assets by 21002

$640b
$43t
up to

Source: Munich Re, “The natural disasters of 2018 in figures,” 8 Jan 2019, and “Hurricanes cause record losses
in 2017 — The year in figures,” 4 Jan 2018. https://www.munichre.com/en/company/media-relations/media-information-andcorporate-news/media-information/2020/causing-billions-in-losses-dominate-nat-cat-picture-2019.html

1

2

2

Source: The Economist Intelligence Unit, “The Cost of Inaction: Recognising the Value at Risk from Climate Change,” 2015.

3

Potential Financial Implications of Climate Change

Potential Financial
Implications of
Climate Change
Rise in Natural Catastrophes andChronic Environmental Shifts• Macroeconomic shocks orfinancial losses caused by storms,
droughts, wildfires, and otherextreme events, or by changing
weather patterns over time
• Unanticipated financial losses
resulting from climate change(e.g., the effect of rising sea levelon credit secured by coastal realestate) could impact the global
financial system

Climate Change is a Financial Risk
Climate-related risk is non-diversifiable
and will have a financial impact on
many companies:

REVENUES

EXPENDITURES

Transition to a Low-Carbon Economy• Risks associated with an abrupt
adjustment to a low-carbon
economy, such as rapid losses
in the value of assets due tochanging policy or consumer
preferences“Climate-relatedrisks are a sourceof financial risk andit therefore falls
squarely within
the mandatesof central banks
and supervisors toensure the financial
system is resilientto these risks.”
– Network for Greening
the Financial System,
First Comprehensive Report,
April 2019ASSETS AND
LIABILITIESCAPITAL AND
FINANCING• Climate-related financial risks
could affect the economy throughelevated credit spreads, greater
precautionary saving, and rapid
pricing readjustments

4

5

The Task Force on Climate-related Financial Disclosures

Chapter name

The Task Force on
Climate-related
Financial Disclosures
G20 Finance Ministers and Central
Bank Governors asked the Financial
Stability Board (FSB) to review how
the financial sector can take accountof climate-related issues.
The FSB established the Task Force on
Climate-related Financial Disclosures(TCFD) to develop recommendations
for more effective climate-related
disclosures that:• could “promote more informed
investment, credit, and insurance
underwriting decisions”• in turn, “would enable stakeholders to understand better theconcentrations of carbon-related
assets in the financial sector andthe financial system’s exposures
to climate-related risks.”

657

The Task Force on Climate-related Financial Disclosures

Industry Led andGeographically Diverse
Task ForceThe Task Force’s 31 international members,
led by Michael Bloomberg, include providersof capital, insurers, large non-financial companies,
accounting and consulting firms, and credit
rating agencies.

17
8
6
8

Experts fromthe Financial Sector
Experts from
Non-Financial Sectors

Other Experts

9Demand for Climate-Related Financial Disclosure

Demand for
Climate-Related
Financial Disclosure

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
decision-making. For example,
over 500 investors with morethan $47 trillion in assets undermanagement committed to engage
with the world’s largest corporate

greenhouse gas emitters to strengthen
their climate-related disclosuresby implementing the TCFD
recommendations as part of Climate
Action 100+.
Demand for climate-related disclosure
from investors and others is criticallyimportant. In particular, large asset
owners and asset managers sit at
the top of the investment chain and,
therefore, have an important role toplay in influencing the organizations
in which they invest to provide betterclimate-related financial disclosures.

“It is necessary for all parties in our investment chain, from
portfolio companies to asset managers, to support TCFD
so that asset owners like us can properly access our portfolio.
I am convinced that TCFD will continue to evolve as a major
framework for such disclosure and strongly recommend
all corporates to join.”In addition, public sector leaders
have also noted the importanceof transparency on climate-related
issues within financial markets.
Climate-related risk is increasingly
the subject of new reporting
requirements, such as the European
Non-financial Reporting Directive
2014/95/EU, stress testing, andregulatory guidance based on the
TCFD recommendations. A numberof national governments and public
sector organizations formallysupport the TCFD.

“The NGFS emphasises theimportance of a robust
and internationally consistentclimate and environmental
disclosure framework.
NGFS members collectively
pledge their support for therecommendations of the
Task Force on Climate-related
Financial Disclosures (TCFD).
The NGFS encourages allcompanies issuing public
debt or equity as well as
financial sector institutions todisclose in line with the TCFD
recommendations.”– Network for Greening the Financial System
First Comprehensive Report, April 2019

– Hiro Mizuno, Former Executive Managing Director and CIO
Japan Government Pension and Investment Fund, February 2020
1011

Climate-Related Risks and Opportunities

Climate-Related Risks
and Opportunities“Climate change presents global markets with risks andopportunities that cannot be ignored, which is why
a framework around climate-related disclosures is so
important. The Task Force brings that framework to thetable, helping investors evaluate the potential risks andrewards of a transition to a lower carbon economy.”

The Task Force identified several categories of climate-related risks andopportunities. These include potential financial impact to assist investors,
and companies consider longer-term strategies and most efficient allocationof capital in light of the potential economic impacts of climate change.

– TCFD Chair, Michael R. Bloomberg, June 2017

Risks

Opportunities

Policy and Legal

Transition• U se of more efficient modes of transport and• C arbon pricing and reporting obligations• M andates on and regulation of existingproduction and distribution processes

Strategic Planning Risk Management

products and services• E xposure to litigation

Resource
Efficiency

Technology• U se of lower-emission sources of energy• U se of supportive policy incentives• U
 se of new technologies
Energy Source • P articipation in carbon market• S ubstitution of existing products and services
with lower emissions options• U nsuccessful investment in new technologies

Financial Impact

Market• D evelopment and/or expansion of low emission• C hanging customer behavior• U ncertainty in market signals• Increase cost of raw materials

goods and services

Products& Services

Reputation• S hift in consumer preferences• Increased stakeholder concern/negative feedback• S tigmatization of sector

IncomeStatement

Cash Flow
Statement• D evelopment of climate adaption and insurance
risk solutions• D evelopment of new products or services throughR&D and innovation

BalanceSheet• A ccess to new markets• U
 se of public-sector incentives• A ccess to new assets and locations needing
Markets• A
 cute: Extreme weather events• C hronic: Changing weather patterns and rising

insurance coverage• P articipation in renewable energy programs

mean temperature and sea levels

and adoption of energy-efficiency measures

Physicial

Resilience

REVENUES
12• U
 se of recycling• M ove to more efficient buildings• R educed water usage and consumption

EXPENDITURESASSETS& LIABILITIES• R
 esource substitutes/diversification

CAPITAL& FINANCING
13

The TCFD Recommendations

The TCFD
Recommendations
The TCFD’s recommendations were published in its 2017 report,
in addition to supporting materials to assist with implementing
climate-related financial disclosure.

In its work, the Task Force drew on
member expertise, significant stakeholder
engagement, and existing climate-related
disclosure regimes to develop a singular,
accessible framework for climate-related
financial disclosure. The recommendations
are structured around four thematic areasthat represent core elements of howorganizations operate:

DRAFT – FOR DISCUSSION PURPOSES ONLY

Technical Supplement

Final Report

The Use of Scenario
Analysis in Disclosureof Climate-Related
Risks and
Opportunities

Implementing the
Recommendations of
the Task Forceon Climate-related
Financial Disclosures

Recommendations of
the Task Forceon Climate-related
Financial Disclosures

June 2017

Governance
June 2017

June 2017

Recommendations of the Task Force on Climate-related Financial DisclosuresiThis report provides context,
background, and the generalframework for climate-related
financial disclosures—it isintended for broad audiences.

Recommendations of the Task Force on Climate-related Financial Disclosure

The annex provides thenext level of detail to help
companies implement
the recommendations.

June 2017i

Recommendations of the Task Force on Climate-related Financial Disclosure

The technical supplement
is a further level of detailof detail that can be helpful
for companies in considering
scenario analysis.

The TCFD 2017 report, supporting materials, and recent status
reports are available at fsb-tcfd.org/publications/.

14i

Strategy
RiskManagement

Metrics
andTargets“The work of the TCFD
shows the power ofvoluntary engagementfrom the private
sector and how it cancomplement public
sector regulations.
A remarkableendeavor, the TCFD
has developed global
standards that are
now being used bya significant numberof corporations
around the world.”–C hristian Thimann,
TCFD Vice Chair and CEO
and Chairman of theManagement Board,
Athora Germany, March 2021

15

The TCFD Recommendations

TCFD Recommended
Disclosures
The four recommendations are supported by specific disclosuresorganizations should include in financial filings or other reports to provide
decision-useful information to investors and others.

Strong focus on risks andopportunities related totransition to lower-carbon
economyStrategy

Disclose the organization’s
governance around climate-relatedrisks and opportunities.

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

Recommended Disclosures

Recommended Disclosuresa) D escribe the board’s oversight ofclimate-related risks and opportunities.

a) D escribe the climate-related risks
and opportunities the organization
has identified over the short,medium, and long term.

b) D escribe management’s rolein assessing and managing
climate-related risks and opportunities.

Key Features of Recommendations
Adoptable by
all organizations

Governance

Designed to solicit
decision-useful,forward-looking information
on financial impacts

Disclosure under
the strategy and metrics
and targets recommendations
in financial filings is subject
to a materiality assessment,
although all organizations
are encouraged to disclose
publicly if practicablec) D escribe the resilience of theorganization’s strategy, taking
into consideration different
climate-related scenarios, including
a 2°C or lower scenario.

Risk Management

Metrics and Targets

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 and opportunities
where such information is material.

Recommended Disclosures

Recommended Disclosuresa) Describe the organization’s
processes for identifying andassessing climate-related risks.

a) Disclose the metrics usedby the organization to assessclimate-related risks andopportunities in line with its strategy
and risk management process.

b) Describe the organization’s
processes for managing
climate-related risks.
c) Describe how processes for
identifying, assessing, andmanaging climate-related risks
are integrated into the organization’s
overall risk management.

16

b) D
 escribe the impact of climate-relatedrisks and opportunities on theorganization’s business, strategy,
and financial planning.

b) Disclose Scope 1, Scope 2, and if
appropriate, Scope 3 greenhousegas (GHG) emissions, and therelated risks.
c) Describe the targets used by theorganization to manage climate-relatedrisks and opportunities and performanceagainst targets.
17

The TCFD Recommendations“We see extensive and mounting
evidence that the physical andtransition effects of the climate
crisis are real. In order to reachthe goals of the Paris Agreement
we need to take forceful action– this includes action from
corporations and the private
sector at large. Climate-related
disclosures and the TCFD
recommendations help companies
consider the impact of climatechange and associated mitigation
efforts on their strategies andoperations. A company that
communicates its climate resiliency
to its investors will have acompetitive advantage over thosethat don’t.”– Mary Schapiro, Head of the TCFD Secretariat
and Vice Chair for Global Public Policy
at Bloomberg LP, February 2021

18

19

Guidance on Implementing the TCFD Recommendations

Guidance on
Implementing the TCFD
Recommendations
In 2017, the Task Force developed an annex report that provides both generaland sector-specific guidance to assist organizations with implementing the
TCFD recommendations and recommended disclosures.
Example of Guidance for All Sectors
Investors and other stakeholders need to understand how climate-related
issues may affect an organization’s businesses, strategy and financial
planning over the short, medium, and long term. Such information is used
to inform expectations about the future performance of an organization.
Strategy
Disclose the actual and potential impacts of climate-related risks and opportunities
on the organization’s businesses, strategy, and financial planning, where suchinformation is material.
Recommended
Disclosure a)

Guidance for All Sectors
Organizations should provide the following information:

Describe theclimate-relatedrisks andopportunities
the organization
has identified
over the short,medium, andlong term.

• a description of what they consider to be the relevant short-,
medium-,and long-term time horizons, taking into consideration
the useful life of the organization’s assets or infrastructure andthe fact that climate-related issues often manifest themselves
over the medium and longer terms,• a description of the specific climate-related issues potentiallyarising in each time horizon (short, medium and long term) that
could have a material financial impact on the organization, and• a description of the process(es) used to determine which risks
and opportunities could have a material financial impact on
the organization.
Organizations should consider providing a description of theirrisks and opportunities by sector and/or geography, as appropriate.
In describing climate-related issues, organizations should refer toTables A1 and A2 on pages 72-73 of the 2017 TCFD Final Report.

20

Recommended
Disclosure b)
Describe theimpact ofclimate-relatedrisks andopportunities
on theorganization’s
businesses,
strategy,
and financial
planning.

Guidance for All Sectors
Building on recommended disclosure (a), organizations should discuss
how identified climate-related issues have affected their businesses,
strategy and financial planning. Organizations should consider the
impact on their businesses and strategy in the following areas:• Products and services• Supply chain and/or value chain• Adaptation and mitigation activities• Investment in research and development• Operations (including types of operations and locations of facilities)
Organizations should describe how climate-related issues serve as
an input to their financial planning process, the time period(s) used,and how these risks and opportunities are prioritized. Organizations’disclosures should reflect a holistic picture of the interdependencies
among factors that affect their ability to create value over time.
Organizations should also consider including in their disclosures
the impact on financial planning in the following areas:• Operating costs and revenues• Capital expenditures and capital allocation• Acquisitions or divestments• Access to capital
If climate-related scenarios were used to inform the organization’s
strategy and financial planning, such scenarios should be described.

Which Organizations Should Implement the TCFD Recommendations?
To promote more informed investing, lending, and insurance underwriting
decisions, the Task Force recommends all organizations with public debt
or equity implement its recommendations. Because climate-related
issues are relevant for other types of organizations as well, all organizations
are encouraged to implement these recommendations.
In particular, implementation by asset managers and asset owners, including
public- and private-sector pension plans, endowments, and foundations
will help their clients and beneficiaries better understand the performanceof their assets, consider the risks of their investments, and make more
informed investment choices.
21Sector-Specific Supplemental Guidance

Sector-SpecificSupplemental Guidance
In addition to the guidance for organizations in all sectors, supplemental
guidance is available for the following groups and industries:

Financial Sector Industries• Banks• Insurance Companies• Asset Managers• Asset Owners

The financial sector was organized into four
major industries largely based on activities
performed. The activities are lending (banks),
underwriting (insurance companies), asset
management (asset managers), and investing(asset owners).

Non-Financial Groups• Energy• Transportation• Materials & Buildings• A griculture, Food,and Forest Products

The non-financial groups identified by the
Task force account for the largest proportionof GHG emissions, energy usage andwater usage.

“It is encouraging to see the increasing number of banks
and asset managers that are systematically including TCFD
recommendations in their risk and opportunities analysis.”– Denise Pavarina, Senior Advisor, Aggrego Consultores, February 2021

22

23

Summary of 2020 Guidance and Other WorkScenario Analysis for
Non Financial Companies

Risk Management Integration
and DisclosureThis guidance is intended to assist non financial companies
interested in using climate related scenarios as part of their efforts
to implement the Task Force’s recommendations.

This guidance is aimed at companies that are interested in
integrating climate related risks into their existing risk management
processes and disclosing information on their risk management
processes in alignment with Task Force’s recommendations.

The Guidance Provides:• practical, process oriented ways
for non financial companies touse climate related scenario
analysis and• ideas for disclosing the resilienceof their strategies to different
climate related scenarios.

The Guidance Focuses on
the Following:• the elements of establishingorganizational structuresand processes to conduct
scenario analysis;• the scenario development
process, including scenario types,
structural elements, and sourcesof scenarios;• the application of scenario analysis
to strategy formulation to enhance
resilience and improve flexibility
and adaptability to future climatechange; and• the importance and challenges
of disclosure around strategy
and scenarios, and what should
be disclosed.

Initial Steps for Integration

Unique Characteristics

The guidance explores thepracticalities of integrating climate
related risks into existing risk
management processes and outlines
a set of high level, initial steps
intended to support companies
in identifying importantconsiderations for integration.

The guidance describes the uniquecharacteristics of climate relatedrisks that are important to consider
when integrating such risks into
existing processes. The following
characteristics of climate relatedrisks are discussed:

STEP 1. Ensure there is a general
understanding across the companyof climate change concepts and its
potential impacts.
STEP 2. Identify the specific risk
management processes and elements that
may need to be adjusted for the integrationof climate related risk as well as thefunctions and departments responsible
for those processes and elements.
STEP 3. Incorporate climate related risks
into the existing risk taxonomy and risk
inventory used in the company. This
includes mapping climate related risks
to existing risk categories and types.
STEP 4. Adapt existing risk management
processes and key elements based on
information gained in the previous steps andthe characteristics of climate related risk.

24• Different effects based on
geography and azctivities,• Longer time horizons andlong lived effects,• Novel and uncertain nature,• Changing magnitude andnon linear dynamics, and• Complex relationships andsystemic effects.
Disclosure Examples
The guidance also describes featuresof decision useful risk management
disclosures as well as examples ofcompanies’ disclosures.

25

Implementing the TCFD Recommendations

Implementing the
TCFD Recommendations

Managing Climate-Related Issues
Building appropriate internal processes
to manage climate-related issues,
as well as collecting necessary data
and metrics.
Existing and Future
Reporting Requirements
Reviewing requirements forfinancial and non-financial reporting
considering whether additional
requirements will likely be released.
Reporting Capabilities
Developing processes andcapacity to report information
under the TCFD recommendations –subject to appropriate internal
governance processes and in linewith regulatory requirements.

26

Materiality
Taking the unique longer-term impacts
and challenges of climate change into
account when assessing materiality.
All organizations are encouraged toreport in line with the Governance andRisk Management recommendations
regardless of materiality.
Placement
Determining the appropriate
placement of disclosures — inmainstream (i.e., public) annual
financial filings as recommended
by the TCFD or other official
company reports.
Ongoing Collaboration
and Improvement
Organizations have expressed thatparticipation in TCFD working groups,
workshops or even knowledge sharing
with peers and investors has been
helpful in advancing climate-related
disclosure.

Broad understanding of theconcentration of carbon-related
assets in the financial systemand the financial systems
exposureto climate-related risks.

Greater adoption, further
development of information 
provided (e.g. metrics andscenario analysis), and greatermaturity in using information.

Adoption Volume

Organizations are now able to draw upon a wealth of examples and resourcesto accelerate their disclosures aligned with the TCFD recommendations. Once
initial climate-related reporting is released, companies are encouraged tocontinue improving and developing their disclosures. Implementing the TCFD
recommendations generally includes the following considerations:

Illustrative Implementation Path

Organizations begin todisclose in financial filings.

Final TCFD 
Report released

More complete, consistent, and
comparable information formarketparticipants, increasedtransparency, and appropriate
pricing of climate-related risks
and opportunities.

Climate-related issues viewed
as mainstream business andinvestment considerations byboth users and preparers.

Companies already reporting underother frameworks implement the
Task Force’s recommendations.
Others consider climate-related
issues within their businesses.

Five Year Time Frame

TCFD Principals for Effective Disclosures

1

Disclosures should represent relevant information

2

Disclosures should be specific and complete

3

Disclosures should be clear, balanced and understandable

4

Disclosures should be clear over time5

Disclosures should be comparable among companies within a sector,
industry or portfolio

6Disclosures should reliable, verifiable and objective

7

Disclosures should be provided on a timely basis
27

Implementing the TCFD Recommendations

Benefitsof Implementation
Some of the potential benefits associated with implementing the Task Force’s
recommendations include:• Easier or better access to capitalby increasing investors’ andlenders’ confidence that thecompany’s climate-related risks
are appropriately assessed andmanaged• I ncreased awareness andunderstanding of climate-relatedrisks and opportunities within thecompany, resulting in better risk
management and more informed
strategic planning• More effectively meeting existing
disclosure requirements toreport material informationin financial filings• Proactively addressing investors’
demand for climate-related
information in a framework thatinvestors are increasingly asking
for, which could ultimately reduce
the number of climate-related
information requests received

A Note on Climate-Related Resilience and Scenario Analysis:
The TCFD recommends organizations disclose information about theresilience of their strategies based on the outcomes of different
climate-related scenarios — where such information is material.
The TCFD believes climate-related scenario analysis is an important anduseful tool for organizations to use to understand the strategic implicationsof climate-related risks and opportunities, regardless of materiality. In
particular, climate-related scenario analysis can help organizations identify
indicators to monitor the external environment, which may provide early
warning to reassess and adjust strategies.

“The TCFD disclosure requirements have really helped us drive
better quality thinking around the impact that climate change
could have on our business as well as our impact on climatechange, it has also caused us to bring together our technicalspecialists, our operators and our finance teams to brainstorm
these issues which has strengthened the rigour of our thinking,our understanding of the implications but most importantly
the identification of key actions.”– Graeme Pitkethly, Chief Financial Officer, Unilever, March 2021

28

29

Implementing the TCFD Recommendations

Select Resourceson the TCFD
Recommendations

TCFD Website
Further information on TCFD
is available on our website at
fsb-tcfd.org. The TCFD website
includes all of the TCFD’s publications,
including the final recommendations,
implementation annex, guide toscenario analysis, report translations,and recent status reports.
TCFD Knowledge Hub
The TCFD Knowledge Hub(TCFDhub.org) hosts over 400
resources that help companies
identify, analyze, and reportclimate-related financial information.
The Hub was created by the
Climate Disclosure Standards Board(CDSB) to support the adoptionof the TCFD recommendations andthe development of high-quality,
consistent and comparable
climate-related financial disclosures.
WBCSD Preparer Forums
The World Business Council for
Sustainable Development (WBCSD)
has worked with companies inseveral industries, such as oil and gas,
electric utilities, and chemicals,in forums focused on implementationof the TCFD recommendations. The
reports of these “preparer forums”
are available on the WBCSD website.

30

UNEP FI Reports on Climate-Related
Risk and Scenario Analysis
The United Nations Environment
Programme Finance Initiative(UNEP FI) has led pilot projects on
TCFD implementation for financial
institutions. Its 16-member banking
pilot released two reports in 2018that detail climate-related scenario
analysis methodologies for banks.
UNEP FI led a 20-member pilot forinvestors, which released a guideto scenario-based methods forclimate risk assessment in 2019,as well as a similar effort with
16 major insurers. All reports areavailable at unepfi.org/tcfd.
Additional Resources
Many other organizations such as
the UN Principles for Responsible
Investing (UN PRI), CDP, CDSB, andthe Sustainable AccountingStandards Board (SASB) haveworked to align with the TCFD
recommendations and have released
various resources to assist organizations
with implementing and using
climate-related financial disclosure.

31

TCFD Supporters

TCFD Supporters“Four years on, the TCFD has generated a step change
in both the demand for and supply of climate reporting.
The demand for TCFD disclosure is now enormous.”

Since the release of the TCFD recommendations, support forthe
TCFD has increased rapidly. The TCFD’s 2,000+ supporting organizations
span the public and private sectors and represent over 80 industries
in 78 countries, including the governments of 11 countries.

DEC
2015

JUN
2017
Announcement of
the establishmentof the TCFD.

MAY
2018
When the Task
Force released
its disclosure
recommendations
in June 2017, it
did so with thesupport of over
100 CEOs.

JAN
2016

JUN
2019
Launch of
the TCFD
Knowledge Hub.

At French President
Emmanuel Macron’s
One Planet Summit,
Governor Mark
Carney and Michael
Bloomberg advanced
the discussion
around the TCFD
and announced over
230 supporters.

Task Forcemembers wereselected andannounced.

DEC
2017

– Mark Carney, UN Special Envoy on Climate Action and Finance,
Governor of the Bank of England, September 2019

OCT
2020
The Task Forcereleased its
second status
report andannounced
almost 800
supporters.

The Task Forcereleased its firststatus report at
the One Planet
Summit in New York
City and announced
over 500 supporters.

SEP
2018

DEC
2020
TCFD launches
its third status
report, guidance on
scenario analysis andrisk management,
and consultation.

At the One Planet Sovereign
Wealth Funds Summit gathering
33 CEOs from among theworld’s largest institutional
investors with over $30 trillion
in assets under management,
CEOs of sovereign wealth funds
and asset managers madestatements to drive the supportof the TCFD recommendations
as a global reporting standard.

The Governmentof Japan holds
first-ever
TCFD Summit.

OCT
2019

In recognition of theanniversary of theParis agreement,
the 40 largest
listed companies inFrance in the CAC
40 index declared
their support for therecommendationsof the TCFD.

NOV
2020

2,000+
supporters asof March 2021
have a market
capitalization of over
$19.8 trillion,
including over859 financial firms,
responsible
for assets of$175 trillion.

How you can support TCFD:
Visit fsb-tcfd.org/support-tcfd/
and submit the form to contact the TCFD or become a supporter.
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Overview of the TCFD 2020 Status Report

Overview of the
TCFD 2020 Status Report“The Task Force’s recommendations
are intended to help build
consideration of the effects ofclimate change into routine businessand financial decisions, and theiradoption can help companies
demonstrate responsibility andforesight. Better disclosure will leadto more informed and more efficient
allocation of capital, and help
facilitate the transition to a moresustainable, lower-carbon economy.

The influence of the TCFD continues to grow with over 2,000+ supportersfrom around the world.
Top Five Countries by
Number of Supporters

300+

Legend:200-299

100-199

50-99

24-59

10-24

Japan

340

United Kingdom

265

United States

251

France91

Australia

83<10

Number of Supporters

To support preparers in developing more

Based on an AI review of reports forover 1,700 companies, disclosure

effective disclosures, the Task Force askedof climate-related financial information
is growing, but not fast enough.

expert users to rate the usefulness of nearly

60 specific disclosure elements in making
financial decisions.

S upport for the TCFD frameworkhas exceeded initial expectations,in both the private and public
sectors. Disclosure in line with
the TCFD recommendations has
increased every year since theirrelease in 2017... However, greater
disclosure and transparency areurgently needed.”

Increase in number ofrecommended disclosures
addressed– TCFD Chair, Michael R. Bloomberg,
September 2020

pricing climate-related risks for the efficient

The expert users rated all disclosure
elements as useful, and were nearly
unanimous in rating a company’s

32%

description of how climate-related issues
have affected its business and strategy

2.2

2.6

2.9

5

11

2017

2018

2019

Goal

Goal

Average number per company

no material with material
climate risk climate risk

Given the importance of appropriately
allocation of capital, the Task Force believes
disclosure needs to grow at a much
faster pace.

as “extremely useful.”
Top Five Most Useful Disclosure Elements# Disclosure Element
1 How climate-related issues affected
a company’s business and strategy
2 Key metrics on climate-related issues formost recent period and historical periods
3 The material climate-related issues
identified for each sector and geography
4 Scope 1 GHG emissions for the most recent
period and historical periods
5 Climate-related targets related to
GHG emissions

Source: 2020 TCFD Status Report

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Examples of Momentum for the TCFD

Examples of Momentum
for the TCFD

Australia
August 2019: The Australian
Securities and Investment
Commission updated its regulatory
guidance on climate-related
disclosure, encouraging TCFD-aligned
reporting and welcoming TCFD as
the preferred market standard.
BrazilSeptember 2020: Banco Central Do
Brasil announced plans to disclosein line with TCFD recommendations
and issue regulation for banks
to disclose in line with therecommendations in 2021/2022.

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CanadaMay 2020: The Canadian government
established COVID-19 relief financing
to large employers contingent, inpart, on employers publishing
TCFD-aligned disclosures.
European Union
June 2019: The European
Commission incorporated the
TCFD recommendations into its
Guidelines on Reporting Climate-RelatedInformation to support companies
in disclosing climate-related
information under the European
Union’s reporting requirements.

Hong Kong
December 2020: A cross-agencygroup chaired by the Hong Kong
Monetary Authority and Securities
and Futures Commission launcheda strategic plan that requires Hong
Kong financial institutions and listedcompanies to disclose in line with
TCFD recommendations no later
than 2025.
IrelandNovember 2020: The Ministerfor Finance, Paschal Donohoe
T.D., announced Ireland’s supportand endorsement for the workof the TCFD, highlighting thatthe implementation of the TCFD
Recommendations represent
best practice for companies andaddress the needs of investors
for greater transparency.

Japan
October 2019/2020: The Ministry of
Economy, Trade and Industry (METI)
released TCFD Guidance 2.0 in 2020
and together with Ministry of theEnvironment and Financial Services
Agency supported the launch of the
TCFD Consortium of Japan publicprivate sectors platform to pursue
climate-related financial disclosures.
METI held the first TCFD summit in
October 2019 and a second summit
on October 9, 2020. Japan currently
hosts the largest group of TCFD
supporters, accounting for almost
a quarter of the world’s total.

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MexicoSeptember 2020: Banco de México
recommended providing a clear
strategy on how regulation andsupervision will promote disclosureof physical and transition risk
analysis of financial institutions
and corporations, following the
TCFD recommendations.
New Zealand
September 2020: The New Zealandgovernment announced it would
introduce a mandatory climaterelated financial disclosure regime
based on the TCFD framework.

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Singapore
June 2020: The monetary Authorityof Singapore indicated banks
should use international reporting
frameworks like the TCFD to guidetheir environmental risk disclosure.
South Africa
May 2020: The National Treasuryof South Africa published a draft
technical paper recommending
regulators and the financial
sector establish standards on
identifying, monitoring, andreporting environmental andsocial risks, including climaterelated risks, that incorporate
the TCFD recommendations.

Switzerland
January 2021: Switzerland became
a formal supporter of TCFD tocomplement the country’s sustainablefinance policy agenda. The decision
is in line with the Federal Council’s
call to have Swiss companies fromall economic sectors implement the
TCFD recommendations, with theFederal Council aiming to put forward
legislation to make this binding.

United Kingdom
November 2020: The United
Kingdom announced that all
publicly listed UK companies witha premium listing will be required
to “comply or explain” with the
TCFD’s requirements by 2023, withmandatory TCFD-aligned disclosuresacross non-financial and financial
sectors of the UK economy by 2025.

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fsb-tcfd.org