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How TCFD and ISSB work together: understanding the 
interoperability

The structural transition from TCFD to ISSB

As global expectations for climate-related disclosures rise, many organisations have relied on the Task Force on Climate-related Financial Disclosures (TCFD) to guide reporting. Established by the Financial Stability Board (FSB) in 2015, TCFD became the most widely referenced climate disclosure framework.

In October 2023, the FSB officially confirmed that the TCFD had completed its mandate. The FSB assigned ongoing responsibility for monitoring progress in climate-related financial disclosures to the International Sustainability Standards Board (ISSB), under the IFRS Foundation. This transition is not a replacement but a continuation: IFRS S2 fully incorporates the TCFD recommendations and significantly expands upon them.

TCFD: the original climate disclosure framework

Since its launch, TCFD has provided a structured framework for companies to disclose how climate risks and opportunities affect financial performance. It is built around four core themes:

  • Governance: Roles of the board and management in overseeing climate risks
  • Strategy: Impacts of climate-related risks on business planning and resilience
  • Risk management: Identification and mitigation of material climate risks
  • Metrics and targets: Quantitative indicators and climate performance targets

By 2023, over 4,000 organisations across 100+ jurisdictions had adopted or aligned with the TCFD framework.

ISSB and IFRS S2:
the new global standard

The ISSB, launched by the IFRS Foundation in 2021, was tasked with creating a globally consistent baseline for sustainability-related disclosures. In June 2023, the ISSB issued its first two standards:

IFRS S1-

General Sustainability-related disclosures

IFRS S2-

Climate-related disclosures

IFRS S2 is not merely inspired by TCFD, it is built directly upon its structure. The four-pillar architecture is retained, but most requirements are more detailed and binding. IFRS S2 also includes specific industry guidance through the SASB-aligned metrics appendix.

How are TCFD and ISSB aligned?

According to IFRS analysis (Nov 2024), approximately 77% of IFRS S2 disclosure items are new, enhanced, or more granular than those in TCFD.

TCFD theme

Governance

Strategy

Risk management

Metrics and targets

IFRS S2 equivalent

Disclosures on board oversight, management responsibilities, and reporting structure

Description of climate-related risks/opportunities, scenario analysis, time horizons, and resilience

Detailed processes for identifying, assessing, and managing both transition and physical risks

Disclosure of Scope 1–3 emissions, targets, use of carbon credits, industry-specific metrics, and performance

For technical preparers, sustainability professionals, and compliance teams, the IFRS Foundation has published an authoritative comparison between the Task Force on Climate-related Financial Disclosures (TCFD) and the ISSB’s IFRS S2 standard.

Why this matters for companies and investors

This transition isn’t just technical—it’s strategic. Companies benefit from:


Some key benefits include:

  • Clarity: IFRS S2 integrates and builds on the most widely used disclosure architecture;
  • Efficiency: Reduce duplication and align efforts across teams;
  • Regulatory alignment: ISSB standards are referenced or being adopted in the EU, UK, Singapore, Australia, Canada, and more;
  • Investor Confidence: ISSB’s global baseline supports better comparability and decision-useful climate risk data.

What about other frameworks?

To support consistency and reduce the reporting burden, the ISSB has worked with regulators and standard-setters to ensure cross-framework alignment:

EU CSRD/ESRS

In May 2024, IFRS Foundation and EFRAG published detailed interoperability guidance. Key takeaways:

  • High alignment between IFRS S2 and ESRS E1 (Climate Change)
  • Mappings show where disclosures are fully interoperable, partially aligned, or jurisdiction-specific
  • Enables companies reporting under both frameworks to re-use the same climate data

GRI

ISSB and GRI announced collaboration on GHG accounting alignment, supporting entities reporting both financial and impact materiality perspectives.

US SEC

Ongoing technical discussions are underway to ensure complementarity between IFRS S2 and SEC’s climate disclosure rule, especially around definitions of materiality and emissions boundaries.