The TCFD offers a structured guide for companies to disclose financial relevant climate data. The framework is divided into four main focus areas: 

Governance: Explaining climate oversight by leadership. 

Strategy: Exploring climate’s potential impact on business strategy and finances. 

Risk Management: Outlining how climate risks are managed internally. 

Metrics & Targets: Providing clear data and targets for measuring climate-related performance. 

These recommendations are suitable for businesses across all sectors and regions. They’re especially relevant to publicly traded companies, asset owners, and asset managers. While not mandatory in most regions, following the guidelines helps meet investor expectations and promotes transparency.

At present, TCFD reporting is voluntary. However, certain jurisdictions, like the UK, have announced plans to make TCFD-aligned disclosures mandatory for specific organizations by 2025. 

Adopting the TCFD guidelines can lead to multiple benefits: 

• Greater Transparency: Provides a clearer picture of climate-related risks and strategies. 

• Stronger Risk Oversight: Encourages structured climate risk analysis and response. 

• Better Stakeholder Communication: Equips investors and stakeholders with decision-useful insights. 

• Stronger Corporate Reputation: Signals a strong commitment to sustainable and responsible operations. 

Start by reviewing your current disclosures and comparing them to TCFD guidelines. Engage key stakeholders, conduct climate scenario planning, and embed climate considerations into governance and risk frameworks.

Yes, TCFD strongly advocates using scenario analysis to explore how various climate futures might affect business operations. It offers guidance on modeling scenarios—including a 2°C pathway—to help organizations assess the robustness of their strategies.

Indeed. TCFD provides additional sector-specific guidance for industries particularly vulnerable to climate change. This includes energy, transportation, materials and buildings, agriculture, food, and forestry. These tailored insights help companies in these sectors align disclosures more effectively.