About
The challenge we’re addressing
One of the essential functions of financial markets is to price risk to support informed, efficient capital-allocation decisions. To carry out this function, financial markets need accurate and timely disclosure from companies. Without the right information, investors and others may incorrectly price or value assets, leading to a misallocation of capital.
The Financial Stability Board (FSB) created the TCFD to develop recommendations on the types of information that companies should disclose to support investors, lenders, and insurance underwriters in appropriately assessing and pricing a specific set of risks—risks related to climate change.
Our goal
Given its remit from the Financial Stability Board, the TCFD is committed to market transparency. In our view, the success of the TCFD recommendations depends on widespread adoption by companies in the financial and non-financial sectors.
Through widespread adoption, financial risks and opportunities related to climate change will become a natural part of companies’ risk management and strategic planning processes. As this occurs, companies’ and investors’ understanding of the potential financial implications associated with transitioning to a lower-carbon economy and climate-related physical risks will grow; information will become more decision-useful; and risks and opportunities will be more accurately priced, allowing for the more efficient allocation of capital.
Our work
In 2017, the TCFD released climate-related financial disclosure recommendations designed to help companies provide better information to support informed capital allocation.
Our disclosure recommendations are structured around four thematic areas that represent core elements of how companies operate: governance, strategy, risk management, and metrics and targets. The four recommendations are interrelated and supported by 11 recommended disclosures that build out the framework with information that should help investors and others understand how reporting organizations think about and assess climate-related risks and opportunities.
Since the publication of the TCFD recommendations, the FSB has asked the Task Force to continue its work—promoting adoption of the TCFD framework, providing further guidance, supporting educational efforts, monitoring climate-related financial disclosure practices in terms of their alignment with the TCFD recommendations, and preparing annual status reports.
The TCFD’s latest status reportView the TCFD recommendations
Task Force members
The Task Force consists of 31 members from across the G20, representing both preparers and users of financial disclosures. The TCFD is chaired by Michael R. Bloomberg, founder of Bloomberg L.P.
History
November 2022 4,000+ supporters
The number of TCFD supporters surpasses 4,000 organizations from 100+ countries with a combined market capitalization of $27 trillion.
October 2022 2022 status report
The Task Force launches its fifth status report, finds percent of companies disclosing TCFD-aligned information steadily increased since 2017.
April 2022 EFRAG launches draft sustainable reporting standards
EFRAG launches a public consultation on the draft European Sustainable Reporting Standards, which include disclosure requirements that correspond with the pillars of the TCFD recommendations.
March 2022 ISSB publishes exposure drafts
The International Sustainability Standards Board (ISSB) publishes two exposure drafts: sustainability-related disclosure standards and climate-related disclosure standards. Both build upon the TCFD Recommendations; the latter covers elements of all 11 recommended disclosures.
January 2022 3,000+ supporters
The number of TCFD supporters surpasses 3,000 organizations from 92 countries with a combined market capitalization of $27.2 trillion, illustrating how support for the TCFD recommendations continues to increase around the world.
November 2021 Formation of the ISSB
The International Financial Reporting Standards Foundation (IFRS) announces the formation of the International Sustainability Standards Board (ISSB), which intends to use the TCFD and other frameworks as a basis for its work.
October 2021 2021 status report
The Task Force launches its fourth status report, guidance on metrics, targets, and transition plans, and revised implementation guidance.
July 2021 G7 and G20 pledge
The G20 pledges to promote implementation of disclosure requirements based on the TCFD framework in line with domestic regulatory frameworks, a month after the G7 makes a similar announcement.
October 2020 2020 status report
The TCFD releases its 2020 Status Report, which describes the progress companies are making in the implementing the TCFD recommendations.
February 2020 1,000+ supporters
The number of TCFD supporters surpasses 1,000, signifying a major shift among market participants in acknowledging that climate change presents a financial risk.
October 2019 Inaugural TCFD Summit
The government of Japan hosts the first-ever TCFD Summit in Tokyo.
June 2019 Second status report
In 2019, the Task Force releases its second status report and forms an industry advisory group to assist in developing practical guidance for conducting climate scenario analysis.
April 2019 Central bank support
The Network for Greening the Financial System (NGFS), a group of 72 central banks and supervisors, encourages companies to disclose climate risks in line with the TCFD recommendations.
September 2018 First status report
The TCFD publishes its first status report on current disclosure practices, sharing investor perspectives on decision-useful disclosures and areas for improvement.
May 2018 TCFD Knowledge Hub
The TCFD launches the TCFD Knowledge Hub in collaboration with the Climate Disclosure Standards Board (CDSB).
June 2017 TCFD recommendations released
After issuing a series of draft reports, the Task Force releases its final climate-related financial disclosure recommendations, which promote transparency leading to better climate-risk management. One hundred CEOs sign a statement of support for the TCFD.
December 2016 Draft recommendations released
The TCFD issues draft recommendations for climate-related financial disclosure, inviting public feedback during a 60-day consultation period.
January 2016 TCFD members announced
The FSB selects an initial group of 29 representatives from various organizations, including large banks, insurance companies, asset managers, pension funds, large non-financial companies, accounting and consulting firms and credit rating agencies. The Task Force begins its work.
December 2015 TCFD created
The Financial Stability Board, under former Chair and Bank of England Governor Mark Carney, establishes the Task Force to help identify the information needed by investors, lenders, and insurance underwriters to appropriately assess and price climate-related risks and opportunities.
April 2015 FSB considers climate
The G20 Finance Ministers and Central Bank Governors ask the Financial Stability Board (FSB) to review how the financial sector can take account of climate-related issues. As part of its review, the FSB identifies the need for better information to support informed investment, lending, and insurance underwriting decisions and improve understanding and analysis of climate-related risks.