TCFD Disclosures
What TCFD Disclosures covers.
Created in 2015 by the Financial Stability Board (FSB) at the G20's request, the TCFD set out climate disclosures in four pillars: Governance, Strategy, Risk Management, and Metrics and Targets. They answer the question investors, lenders, and insurers ask: how will climate change affect this company's finances? The TCFD completed its work and disbanded in October 2023. Its recommendations are fully built into the ISSB's IFRS S2, and the IFRS Foundation now monitors company climate disclosures.
What makes it distinctive.
- 01Climate-focused financial risk disclosure: bridges sustainability data with financial planning
- 02Four core pillars: Governance, Strategy, Risk Management, and Metrics & Targets
- 03Recommends scenario analysis that includes a 2°C or lower scenario, to test business resilience
- 04Mandatory in TCFD-based form for the largest companies in the UK (since 2022), New Zealand (since 2023) and Switzerland (since 2024). In Japan, Prime Market companies disclose on a comply-or-explain basis, and ISSB-based SSBJ standards become mandatory for the largest from fiscal years ending March 2027
What companies report against it.
How the board oversees climate risks and opportunities, including committee structures, board competency, and frequency of climate-related briefings.
How management assesses and manages climate risks, including which C-suite roles are responsible and how climate KPIs affect executive compensation.
Physical risks (flooding, heat stress, supply chain disruption) and transition risks (carbon pricing, stranded assets, regulatory changes) identified over short, medium, and long-term horizons.
Financial impact assessment under different warming scenarios, including a 2°C or lower scenario. Includes revenue impacts, asset impairments, and capital expenditure requirements.
The processes used to identify, assess, prioritize, and integrate climate risks into your enterprise risk management (ERM) framework.
Scope 1, 2, and 3 emissions disclosed in metric tonnes CO₂e. Internal carbon pricing if used. Climate-related targets, timelines, and progress against them (e.g., Net Zero by 2040).
Our free ESG Scorecard collects some related figures, listed under How we map your data, below.
Who needs it.
TCFD-style disclosure is useful if you are listed, borrow from banks that set climate targets for their lending, supply companies that report under the UK's mandatory climate disclosure rules, or operate where climate risk disclosure is becoming law. Private companies seeking investment also use it.
Where it fits in 2026.
The UK made TCFD-aligned climate disclosure mandatory from April 2022 for its largest companies (for example, private companies with more than 500 employees and £500 million turnover), the first G20 country to do so. New Zealand and Switzerland followed with their own mandates. The TCFD's recommendations are now built into the ISSB's IFRS S2 and the UK's own versions, UK SRS S1 and S2, published in February 2026 for voluntary use. California's SB 261 requires companies with more than $500 million in revenue doing business in the state to publish a climate-related financial risk report every two years; the first reports were due on 1 January 2026, but a federal appeals court paused enforcement in November 2025 while a legal challenge is heard.
How we map your data.
The free ESG Scorecard has an optional climate section. It records what you enter on physical and transition risks, a 2°C and 4°C scenario view, a Scope 3 estimate, and your net-zero year and 2030 interim target, and shows a TCFD coverage figure across the four pillars. Every figure is self-reported, including emissions: it is a self-assessment, not a TCFD disclosure ready to file. For a carbon figure computed from your accounting ledger, see the Carbon Draft.
Need emissions computed from your ledger? The Carbon Draft calculates Scope 1 and 2 from your accounting export, and Scope 3 on the Complete tier. Its Disclosure-Aligned tier adds a framework table covering the GHG Protocol, CDP Climate, CSRD/ESRS E1 and California SB-253; it does not map to TCFD.