Established by the Financial Stability Board (FSB) in 2015 to develop recommendations that enable companies to disclose climate-related financial risks and opportunities in a clear, consistent, and comparable way, TCFD aims to improve the transparency of climate-related financial information across markets, supporting better-informed investment, credit, and insurance underwriting decisions.

Climate change presents physical and transition risks that can have significant financial implications for organisations. The TCFD framework provides a structured approach to help companies identify, assess, and disclose these climate-related risks and opportunities in their mainstream financial filings.

The framework is principles-based, built around four core pillars:

  1. Governance

How the organisation’s governance structure oversees climate-related risks and opportunities.

  1. Strategy

The actual and potential impacts of climate-related issues on business, strategy, and financial planning.

  1. Risk management

How climate-related risks are identified, assessed, and managed.

  1. Metrics and targets

The metrics and targets used to assess and manage climate-related risks and performance.

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TCFD is designed for all sectors and company sizes:

TCFD is particularly relevant to businesses operating in high-impact sectors such as energy, transport, agriculture, real estate, and finance.

TCFD is a globally recognised framework and has been adopted in over 95 jurisdictions. Its recommendations are voluntary but have been incorporated into regulation or stock exchange requirements in countries such as the United Kingdom, Japan, New Zealand, Singapore, Switzerland, and the European Union.

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Endorsed by public and private entities

TCFD is widely endorsed by governments, financial regulators, central banks, stock exchanges, and standard-setting bodies. More than 4,000 organisations worldwide support TCFD, including major institutional investors and global corporates.

Organisations typically follow these steps to align with TCFD:

Conduct a climate risk assessment

Identify physical and transition risks relevant to your business.

Develop Climate Governance Structures

Assign oversight and establish responsibility at board and management levels.

Analyse Scenarios

Use climate scenarios (e.g., 1.5°C, 2°C pathways) to explore potential business impacts.

Integrate into Strategy and Risk Management

Embed climate risks into strategic planning and enterprise risk management.

Measure and Monitor

Establish metrics and targets to track exposure and progress.

Report Publicly

Disclose climate-related information through annual reports or 
sustainability disclosures, aligned with the four TCFD pillars.

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TCFD reflects the following perks on any company or industry that follows its methodology: 

Strengthens transparency and trust by addressing investor demand for climate-related financial disclosure.

Helps organisations understand how climate risks may impact operations, supply chains, and long-term resilience.

Encourages long-term thinking through scenario analysis and integration with risk management.

Positions organisations to comply with emerging reporting requirements, including ISSB, EU CSRD, and national regulations.

Improves access to capital by demonstrating robust climate governance and preparedness.

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Action Plan

Create, assign, and track targeted steps to address issues or achieve objectives, ensuring accountability and progress monitoring.

Request reviews and approval

Stablish clear paths of communication with team members, managers, portfolio companies and funds to meet all requirements.

Assign disclosures

Delegate and manage disclosures and responsibilities within the workflow for streamlined process oversight.

Report management

Generate, organize, and monitor reports efficiently, supporting data-driven decision-making and compliance tracking.

TCFD Guidance

Get an insight of the TCFD methodology to fully understand the reporting process and consult supporting material.

Interoperability

Connect compatible data across frameworks, and reports, saving time and improve data capture efficiency.

1. Is TCFD mandatory?
2. Can SMEs use TCFD?
3. How is TCFD different from other frameworks?
4. What is scenario analysis in TCFD?
5. Where should we publish TCFD disclosures?
6. Is TCFD only relevant to carbon-intensive industries?

No. Climate risks can affect all sectors—via supply chain disruption, resource availability, changing regulations, and reputational pressure.

7. How does TCFD align with ISSB Standards?
8. What support is available to implement TCFD?
9. Can TCFD disclosures improve investor engagement?
10. What if my company is just starting with climate reporting?

What other Frameworks are compatible with TCFD?

GRI

ISSB

ESRS

SASB