Task Force on Climate-related Financial Disclosures - Overview
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Task Force on
Climate-related
Financial Disclosures
Overview
March 2021
Contents
The Need for Climate-Related Financial Disclosure 2
Potential Financial Implications of Climate Change 4
The Task Force on Climate-related Financial Disclosures 6
Demand for Climate-Related Financial Disclosure 10
Climate-Related Risks and Opportunities 12
The TCFD Recommendations 14
TCFD Recommended Disclosures 16
Guidance on Implementing the TCFD Recommendations 20
Sector-Specific Supplemental Guidance 22
Summary of 2020 Guidance and Other Work 24
Implementing the TCFD Recommendations 26
Benefits of Implementation 28
Select Resources on the TCFD Recommendations 30
TCFD Supporters 32
Overview of the TCFD 2020 Status Report 34
Examples of Momentum for the TCFD 36
B 1
The Need for Climate-Related Financial Disclosure
The Need for Climate-Related “Now is the time to ensure that every financial
Financial Disclosure decision takes climate change into account.”
– Mark Carney, UN Special Envoy on Climate Action and Finance,
Governor of the Bank of England, December 2019
The large-scale and complex nature their longer-term strategies and most
of climate change makes it uniquely efficient allocation of capital in light
Mark Carney, UN Special Envoy on Climate Action and Finance and Michael R. Bloomberg, TCFD Chair
challenging, especially in the context of these changes. Organizations that
of economic decision making. invest in activities that may not be
Further, many companies have viable in the longer term will likely
incorrectly viewed the implications be less resilient to the transition to a
of climate change to be relevant lower-carbon economy — and their
only in the long term and, therefore, investors will likely experience
not necessarily relevant to decisions lower returns.
made today. Those views, however,
are changing as more information Compounding the effect on longer-term
becomes available on the potential returns is the risk that present
widespread financial impacts of valuations do not adequately factor
climate change. in climate-related risks because of
insufficient information. Investors,
In December 2019, Bank of England lenders, and insurance underwriters
Governor Mark Carney noted that need adequate information on
“changes in climate policies, new how companies are preparing for a
technologies and growing physical lower-carbon economy. More effective,
risks will prompt reassessments of clear, and consistent climate-related
the values of virtually every financial disclosure is needed from companies
asset.” Companies and providers of around the world.
capital, therefore, should consider
Natural catastrophe losses intensified
by climate change (2017-2019)1 $640b
Value at risk as a result of climate change
to manageable assets by 21002 $43t
up to
1
Source: Munich Re, “The natural disasters of 2018 in figures,” 8 Jan 2019, and “Hurricanes cause record losses
in 2017 — The year in figures,” 4 Jan 2018. https://www.munichre.com/en/company/media-relations/media-information-and-
corporate-news/media-information/2020/causing-billions-in-losses-dominate-nat-cat-picture-2019.html
2
Source: The Economist Intelligence Unit, “The Cost of Inaction: Recognising the Value at Risk from Climate Change,” 2015.
2 3
Potential Financial Implications of Climate Change
Potential Financial
Implications of
Climate Change
Rise in Natural Catastrophes and Climate Change is a Financial Risk
Chronic Environmental Shifts “Climate-related
Climate-related risk is non-diversifiable
• M
acroeconomic shocks or risks are a source
and will have a financial impact on
financial losses caused by storms, many companies: of financial risk and
droughts, wildfires, and other it therefore falls
extreme events, or by changing
weather patterns over time
squarely within
the mandates
• U
nanticipated financial losses
of central banks
resulting from climate change
(e.g., the effect of rising sea level and supervisors to
on credit secured by coastal real REVENUES EXPENDITURES ensure the financial
estate) could impact the global system is resilient
financial system
to these risks.”
Transition to a Low-Carbon Economy – Network for Greening
the Financial System,
• R
isks associated with an abrupt First Comprehensive Report,
adjustment to a low-carbon April 2019
economy, such as rapid losses
ASSETS AND CAPITAL AND
in the value of assets due to LIABILITIES FINANCING
changing policy or consumer
preferences
• C
limate-related financial risks
could affect the economy through
elevated credit spreads, greater
precautionary saving, and rapid
pricing readjustments
4 5
Chapter name The Task Force on Climate-related Financial Disclosures The Task Force on Climate-related Financial Disclosures G20 Finance Ministers and Central Bank Governors asked the Financial Stability Board (FSB) to review how the financial sector can take account of climate-related issues. The FSB established the Task Force on Climate-related Financial Disclosures (TCFD) to develop recommendations for more effective climate-related disclosures that: • c ould “promote more informed investment, credit, and insurance underwriting decisions” • in turn, “would enable stake- holders to understand better the concentrations of carbon-related assets in the financial sector and the financial system’s exposures to climate-related risks.” 6 57
The Task Force on Climate-related Financial Disclosures
Industry Led and
Geographically Diverse
Task Force
The Task Force’s 31 international members,
led by Michael Bloomberg, include providers
of capital, insurers, large non-financial companies,
accounting and consulting firms, and credit
rating agencies.
17 Experts from
the Financial Sector
8 Experts from
Non-Financial Sectors
6 Other Experts
8 9
Demand for Climate-Related Financial Disclosure
Demand for
Climate-Related
Financial Disclosure
Demand for climate-related greenhouse gas emitters to strengthen In addition, public sector leaders
disclosure has increased significantly their climate-related disclosures have also noted the importance “The NGFS emphasises the
since the release of the TCFD by implementing the TCFD of transparency on climate-related importance of a robust
issues within financial markets.
recommendations in 2017. recommendations as part of Climate and internationally consistent
Action 100+. Climate-related risk is increasingly
the subject of new reporting
climate and environmental
Many private sector financial
institutions, investors, and others Demand for climate-related disclosure requirements, such as the European disclosure framework.
continue to make progress on from investors and others is critically
Non-financial Reporting Directive NGFS members collectively
2014/95/EU, stress testing, and
incorporating climate-related important. In particular, large asset pledge their support for the
regulatory guidance based on the
disclosure into their financial owners and asset managers sit at
TCFD recommendations. A number recommendations of the
decision-making. For example, the top of the investment chain and,
of national governments and public Task Force on Climate-related
over 500 investors with more therefore, have an important role to
than $47 trillion in assets under play in influencing the organizations
sector organizations formally Financial Disclosures (TCFD).
support the TCFD.
management committed to engage in which they invest to provide better The NGFS encourages all
with the world’s largest corporate climate-related financial disclosures. companies issuing public
debt or equity as well as
financial sector institutions to
“It is necessary for all parties in our investment chain, from
disclose in line with the TCFD
portfolio companies to asset managers, to support TCFD
recommendations.”
so that asset owners like us can properly access our portfolio.
– Network for Greening the Financial System
I am convinced that TCFD will continue to evolve as a major First Comprehensive Report, April 2019
framework for such disclosure and strongly recommend
all corporates to join.”
– Hiro Mizuno, Former Executive Managing Director and CIO
Japan Government Pension and Investment Fund, February 2020
10 11
Climate-Related Risks and Opportunities
Climate-Related Risks “Climate change presents global markets with risks and
and Opportunities
opportunities that cannot be ignored, which is why
a framework around climate-related disclosures is so
important. The Task Force brings that framework to the
table, helping investors evaluate the potential risks and
The Task Force identified several categories of climate-related risks and
opportunities. These include potential financial impact to assist investors, rewards of a transition to a lower carbon economy.”
and companies consider longer-term strategies and most efficient allocation – TCFD Chair, Michael R. Bloomberg, June 2017
of capital in light of the potential economic impacts of climate change.
Risks Opportunities
Policy and Legal • U
se of more efficient modes of transport and
• C
arbon pricing and reporting obligations production and distribution processes
• M
andates on and regulation of existing • U
se of recycling
Transition products and services Strategic Planning Risk Management Resource • M
ove to more efficient buildings
• E xposure to litigation Efficiency • R
educed water usage and consumption
Technology • se of lower-emission sources of energy
U
• S ubstitution of existing products and services • se of supportive policy incentives
U
with lower emissions options • se of new technologies
U
• U
nsuccessful investment in new technologies Energy Source • articipation in carbon market
Financial Impact P
Market
• C hanging customer behavior • D
evelopment and/or expansion of low emission
goods and services
• U ncertainty in market signals
• D
evelopment of climate adaption and insurance
• Increase cost of raw materials
Products risk solutions
& Services • D
evelopment of new products or services through
Reputation
R&D and innovation
• S hift in consumer preferences Income Cash Flow Balance
• Increased stakeholder concern/negative feedback Statement Statement Sheet
• S tigmatization of sector • A
ccess to new markets
• U
se of public-sector incentives
• A
ccess to new assets and locations needing
Markets insurance coverage
• A
cute: Extreme weather events
• C
hronic: Changing weather patterns and rising
• P
articipation in renewable energy programs
mean temperature and sea levels
and adoption of energy-efficiency measures
Physicial • R
esource substitutes/diversification
Resilience
REVENUES EXPENDITURES ASSETS CAPITAL
& LIABILITIES & FINANCING
12 13
The TCFD Recommendations
The TCFD
Recommendations
The TCFD’s recommendations were published in its 2017 report,
In its work, the Task Force drew on
in addition to supporting materials to assist with implementing
member expertise, significant stakeholder “The work of the TCFD
climate-related financial disclosure.
engagement, and existing climate-related shows the power of
disclosure regimes to develop a singular,
voluntary engagement
accessible framework for climate-related
DRAFT – FOR DISCUSSION PURPOSES ONLY
financial disclosure. The recommendations
from the private
Final Report Technical Supplement
Recommendations of Implementing the The Use of Scenario are structured around four thematic areas sector and how it can
the Task Force Recommendations of Analysis in Disclosure that represent core elements of how complement public
on Climate-related the Task Force of Climate-Related organizations operate:
Financial Disclosures on Climate-related Risks and sector regulations.
Financial Disclosures Opportunities A remarkable
endeavor, the TCFD
June 2017
Governance has developed global
standards that are
June 2017 June 2017 June 2017
Recommendations of the Task Force on Climate-related Financial Disclosures i Recommendations of the Task Force on Climate-related Financial Disclosure i Recommendations of the Task Force on Climate-related Financial Disclosure i
This report provides context, The annex provides the The technical supplement Strategy now being used by
background, and the general next level of detail to help is a further level of detail
framework for climate-related companies implement of detail that can be helpful a significant number
financial disclosures—it is
intended for broad audiences.
the recommendations. for companies in considering
scenario analysis.
Risk of corporations
Management
around the world.”
The TCFD 2017 report, supporting materials, and recent status –C
hristian Thimann,
reports are available at fsb-tcfd.org/publications/. TCFD Vice Chair and CEO
Metrics and Chairman of the
and Management Board,
Targets Athora Germany, March 2021
14 15
The TCFD Recommendations
TCFD Recommended Governance Strategy
Disclosures
Disclose the organization’s Disclose the actual and potential impacts
governance around climate-related of climate-related risks and opportunities
risks and opportunities. on the organization’s businesses, strategy
and financial planning where such
information is material.
The four recommendations are supported by specific disclosures Recommended Disclosures Recommended Disclosures
organizations should include in financial filings or other reports to provide
a) D
escribe the board’s oversight of a) D
escribe the climate-related risks
decision-useful information to investors and others.
climate-related risks and opportunities. and opportunities the organization
has identified over the short,
b) D
escribe management’s role
Key Features of Recommendations medium, and long term.
in assessing and managing
climate-related risks and opportunities. b) D
escribe the impact of climate-related
Adoptable by Designed to solicit risks and opportunities on the
organization’s business, strategy,
all organizations decision-useful,
and financial planning.
forward-looking information
c) D
escribe the resilience of the
on financial impacts
organization’s strategy, taking
into consideration different
climate-related scenarios, including
Strong focus on risks and Disclosure under a 2°C or lower scenario.
opportunities related to the strategy and metrics
Risk Management Metrics and Targets
transition to lower-carbon and targets recommendations
economy in financial filings is subject Disclose how the organization Disclose the metrics and targets
to a materiality assessment, identifies, assesses, and manages used to assess and manage relevant
although all organizations climate-related risks. climate-related risks and opportunities
where such information is material.
are encouraged to disclose
publicly if practicable
Recommended Disclosures Recommended Disclosures
a) D
escribe the organization’s a) Disclose the metrics used
processes for identifying and by the organization to assess
assessing climate-related risks. climate-related risks and
opportunities in line with its strategy
b) D
escribe the organization’s
and risk management process.
processes for managing
climate-related risks. b) D
isclose Scope 1, Scope 2, and if
appropriate, Scope 3 greenhouse
c) D
escribe how processes for
gas (GHG) emissions, and the
identifying, assessing, and
related risks.
managing climate-related risks
are integrated into the organization’s c) D
escribe the targets used by the
overall risk management. organization to manage climate-related
risks and opportunities and performance
against targets.
16 17The TCFD Recommendations
“We see extensive and mounting
evidence that the physical and
transition effects of the climate
crisis are real. In order to reach
the goals of the Paris Agreement
we need to take forceful action
– this includes action from
corporations and the private
sector at large. Climate-related
disclosures and the TCFD
recommendations help companies
consider the impact of climate
change and associated mitigation
efforts on their strategies and
operations. A company that
communicates its climate resiliency
to its investors will have a
competitive advantage over those
that don’t.”
– Mary Schapiro, Head of the TCFD Secretariat
and Vice Chair for Global Public Policy
at Bloomberg LP, February 2021
18 19Guidance on Implementing the TCFD Recommendations
Guidance on Recommended
Disclosure b)
Guidance for All Sectors
Building on recommended disclosure (a), organizations should discuss
Implementing the TCFD Describe the
impact of
how identified climate-related issues have affected their businesses,
strategy and financial planning. Organizations should consider the
Recommendations
impact on their businesses and strategy in the following areas:
climate-related
risks and • Products and services
opportunities • Supply chain and/or value chain
on the • Adaptation and mitigation activities
organization’s • Investment in research and development
In 2017, the Task Force developed an annex report that provides both general businesses, • Operations (including types of operations and locations of facilities)
strategy,
and sector-specific guidance to assist organizations with implementing the Organizations should describe how climate-related issues serve as
and financial an input to their financial planning process, the time period(s) used,
TCFD recommendations and recommended disclosures. planning. and how these risks and opportunities are prioritized. Organizations’
Example of Guidance for All Sectors disclosures should reflect a holistic picture of the interdependencies
among factors that affect their ability to create value over time.
Investors and other stakeholders need to understand how climate-related
Organizations should also consider including in their disclosures
issues may affect an organization’s businesses, strategy and financial the impact on financial planning in the following areas:
planning over the short, medium, and long term. Such information is used
• Operating costs and revenues
to inform expectations about the future performance of an organization. • Capital expenditures and capital allocation
• Acquisitions or divestments
Strategy • Access to capital
If climate-related scenarios were used to inform the organization’s
Disclose the actual and potential impacts of climate-related risks and opportunities strategy and financial planning, such scenarios should be described.
on the organization’s businesses, strategy, and financial planning, where such
information is material.
Recommended Guidance for All Sectors
Disclosure a) Organizations should provide the following information:
Describe the description of what they consider to be the relevant short-,
• a
climate-related medium-,and long-term time horizons, taking into consideration Which Organizations Should Implement the TCFD Recommendations?
risks and the useful life of the organization’s assets or infrastructure and
opportunities the fact that climate-related issues often manifest themselves To promote more informed investing, lending, and insurance underwriting
the organization over the medium and longer terms, decisions, the Task Force recommends all organizations with public debt
has identified description of the specific climate-related issues potentially
• a or equity implement its recommendations. Because climate-related
over the short, arising in each time horizon (short, medium and long term) that issues are relevant for other types of organizations as well, all organizations
medium, and could have a material financial impact on the organization, and
long term. are encouraged to implement these recommendations.
description of the process(es) used to determine which risks
• a
and opportunities could have a material financial impact on In particular, implementation by asset managers and asset owners, including
the organization.
public- and private-sector pension plans, endowments, and foundations
Organizations should consider providing a description of their will help their clients and beneficiaries better understand the performance
risks and opportunities by sector and/or geography, as appropriate.
of their assets, consider the risks of their investments, and make more
In describing climate-related issues, organizations should refer to
Tables A1 and A2 on pages 72-73 of the 2017 TCFD Final Report. informed investment choices.
20 21Sector-Specific Supplemental Guidance
Sector-Specific
Supplemental Guidance
In addition to the guidance for organizations in all sectors, supplemental
guidance is available for the following groups and industries:
Financial Sector Industries
• Banks The financial sector was organized into four
• Insurance Companies major industries largely based on activities
• Asset Managers performed. The activities are lending (banks),
• Asset Owners underwriting (insurance companies), asset
management (asset managers), and investing
(asset owners).
Non-Financial Groups
• Energy The non-financial groups identified by the
• Transportation Task force account for the largest proportion
• Materials & Buildings of GHG emissions, energy usage and
• A griculture, Food, water usage.
and Forest Products
“It is encouraging to see the increasing number of banks
and asset managers that are systematically including TCFD
recommendations in their risk and opportunities analysis.”
– Denise Pavarina, Senior Advisor, Aggrego Consultores, February 2021
22 23Summary of 2020 Guidance and Other Work
Scenario Analysis for Risk Management Integration
Non Financial Companies and Disclosure
This guidance is intended to assist non financial companies This guidance is aimed at companies that are interested in
interested in using climate related scenarios as part of their efforts integrating climate related risks into their existing risk management
to implement the Task Force’s recommendations. processes and disclosing information on their risk management
processes in alignment with Task Force’s recommendations.
The Guidance Provides: The Guidance Focuses on Initial Steps for Integration Unique Characteristics
• p
ractical, process oriented ways the Following: The guidance explores the The guidance describes the unique
for non financial companies to • t he elements of establishing practicalities of integrating climate characteristics of climate related
use climate related scenario organizational structures related risks into existing risk risks that are important to consider
analysis and and processes to conduct management processes and outlines when integrating such risks into
scenario analysis; a set of high level, initial steps existing processes. The following
• ideas for disclosing the resilience intended to support companies characteristics of climate related
of their strategies to different • t he scenario development in identifying important risks are discussed:
climate related scenarios. process, including scenario types, considerations for integration.
structural elements, and sources • D
ifferent effects based on
of scenarios; STEP 1. Ensure there is a general geography and azctivities,
understanding across the company
• t he application of scenario analysis of climate change concepts and its • L
onger time horizons and
to strategy formulation to enhance potential impacts. long lived effects,
resilience and improve flexibility
STEP 2. Identify the specific risk • Novel and uncertain nature,
and adaptability to future climate management processes and elements that
change; and may need to be adjusted for the integration • C
hanging magnitude and
of climate related risk as well as the non linear dynamics, and
• t he importance and challenges functions and departments responsible
of disclosure around strategy for those processes and elements. • C
omplex relationships and
and scenarios, and what should systemic effects.
be disclosed. STEP 3. Incorporate climate related risks
into the existing risk taxonomy and risk
inventory used in the company. This Disclosure Examples
includes mapping climate related risks The guidance also describes features
to existing risk categories and types.
of decision useful risk management
STEP 4. Adapt existing risk management disclosures as well as examples of
processes and key elements based on companies’ disclosures.
information gained in the previous steps and
the characteristics of climate related risk.
24 25Implementing the TCFD Recommendations
Implementing the Illustrative Implementation Path
TCFD Recommendations
Broad understanding of the
concentration of carbon-related
assets in the financial system
and the financial systems
exposureto climate-related risks.
Organizations are now able to draw upon a wealth of examples and resources
to accelerate their disclosures aligned with the TCFD recommendations. Once
initial climate-related reporting is released, companies are encouraged to More complete, consistent, and
continue improving and developing their disclosures. Implementing the TCFD comparable information for
marketparticipants, increased
recommendations generally includes the following considerations: Greater adoption, further
Adoption Volume
transparency, and appropriate
development of information
pricing of climate-related risks
provided (e.g. metrics and
and opportunities.
scenario analysis), and greater
maturity in using information.
Managing Climate-Related Issues Materiality
Building appropriate internal processes Taking the unique longer-term impacts
to manage climate-related issues, and challenges of climate change into Climate-related issues viewed
as mainstream business and
as well as collecting necessary data account when assessing materiality. Organizations begin to investment considerations by
disclose in financial filings. both users and preparers.
and metrics. All organizations are encouraged to
report in line with the Governance and
Existing and Future Risk Management recommendations
Reporting Requirements regardless of materiality. Companies already reporting under
other frameworks implement the
Reviewing requirements for Task Force’s recommendations.
Final TCFD
financial and non-financial reporting Placement Report released
Others consider climate-related
issues within their businesses.
considering whether additional Determining the appropriate
requirements will likely be released. placement of disclosures — in Five Year Time Frame
mainstream (i.e., public) annual
Reporting Capabilities financial filings as recommended TCFD Principals for Effective Disclosures
Developing processes and by the TCFD or other official
capacity to report information company reports. 1 Disclosures should represent relevant information
under the TCFD recommendations –
subject to appropriate internal Ongoing Collaboration 2 Disclosures should be specific and complete
governance processes and in line and Improvement 3 Disclosures should be clear, balanced and understandable
with regulatory requirements. Organizations have expressed that
participation in TCFD working groups, 4 Disclosures should be clear over time
workshops or even knowledge sharing Disclosures should be comparable among companies within a sector,
with peers and investors has been 5 industry or portfolio
helpful in advancing climate-related
disclosure. 6 Disclosures should reliable, verifiable and objective
7 Disclosures should be provided on a timely basis
26 27Implementing the TCFD Recommendations
Benefits A Note on Climate-Related Resilience and Scenario Analysis:
The TCFD recommends organizations disclose information about the
of Implementation resilience of their strategies based on the outcomes of different
climate-related scenarios — where such information is material.
The TCFD believes climate-related scenario analysis is an important and
useful tool for organizations to use to understand the strategic implications
Some of the potential benefits associated with implementing the Task Force’s
of climate-related risks and opportunities, regardless of materiality. In
recommendations include:
particular, climate-related scenario analysis can help organizations identify
• E
asier or better access to capital • I ncreased awareness and indicators to monitor the external environment, which may provide early
by increasing investors’ and understanding of climate-related warning to reassess and adjust strategies.
lenders’ confidence that the risks and opportunities within the
company’s climate-related risks company, resulting in better risk
are appropriately assessed and management and more informed
managed strategic planning
• M
ore effectively meeting existing • P
roactively addressing investors’
disclosure requirements to demand for climate-related
report material information information in a framework that
in financial filings investors are increasingly asking
for, which could ultimately reduce
the number of climate-related
information requests received
“The TCFD disclosure requirements have really helped us drive
better quality thinking around the impact that climate change
could have on our business as well as our impact on climate
change, it has also caused us to bring together our technical
specialists, our operators and our finance teams to brainstorm
these issues which has strengthened the rigour of our thinking,
our understanding of the implications but most importantly
the identification of key actions.”
– Graeme Pitkethly, Chief Financial Officer, Unilever, March 2021
28 29Implementing the TCFD Recommendations
Select Resources
TCFD Website UNEP FI Reports on Climate-Related
Further information on TCFD Risk and Scenario Analysis
on the TCFD
is available on our website at The United Nations Environment
fsb-tcfd.org. The TCFD website Programme Finance Initiative
includes all of the TCFD’s publications, (UNEP FI) has led pilot projects on
Recommendations including the final recommendations,
implementation annex, guide to
TCFD implementation for financial
institutions. Its 16-member banking
scenario analysis, report translations, pilot released two reports in 2018
and recent status reports. that detail climate-related scenario
analysis methodologies for banks.
TCFD Knowledge Hub UNEP FI led a 20-member pilot for
The TCFD Knowledge Hub investors, which released a guide
(TCFDhub.org) hosts over 400 to scenario-based methods for
resources that help companies climate risk assessment in 2019,
identify, analyze, and report as well as a similar effort with
climate-related financial information. 16 major insurers. All reports are
The Hub was created by the available at unepfi.org/tcfd.
Climate Disclosure Standards Board
(CDSB) to support the adoption Additional Resources
of the TCFD recommendations and Many other organizations such as
the development of high-quality, the UN Principles for Responsible
consistent and comparable Investing (UN PRI), CDP, CDSB, and
climate-related financial disclosures. the Sustainable Accounting
Standards Board (SASB) have
WBCSD Preparer Forums worked to align with the TCFD
The World Business Council for recommendations and have released
Sustainable Development (WBCSD) various resources to assist organizations
has worked with companies in with implementing and using
several industries, such as oil and gas, climate-related financial disclosure.
electric utilities, and chemicals,
in forums focused on implementation
of the TCFD recommendations. The
reports of these “preparer forums”
are available on the WBCSD website.
30 31TCFD Supporters
TCFD Supporters “Four years on, the TCFD has generated a step change
in both the demand for and supply of climate reporting.
Since the release of the TCFD recommendations, support forthe
The demand for TCFD disclosure is now enormous.”
TCFD has increased rapidly. The TCFD’s 2,000+ supporting organizations – Mark Carney, UN Special Envoy on Climate Action and Finance,
Governor of the Bank of England, September 2019
span the public and private sectors and represent over 80 industries
in 78 countries, including the governments of 11 countries.
DEC JUN MAY JUN OCT DEC
2015 2017 2018 2019 2020 2020
Announcement of When the Task Launch of The Task Force TCFD launches In recognition of the
the establishment Force released the TCFD released its its third status anniversary of the
of the TCFD. its disclosure Knowledge Hub. second status report, guidance on Paris agreement,
recommendations report and scenario analysis and the 40 largest
in June 2017, it announced risk management, listed companies in
did so with the almost 800 and consultation. France in the CAC
support of over supporters. 40 index declared
100 CEOs. their support for the
recommendations
of the TCFD.
At French President
At the One Planet Sovereign
Wealth Funds Summit gathering
2,000+
Emmanuel Macron’s 33 CEOs from among the
One Planet Summit, world’s largest institutional
supporters as
Governor Mark The Task Force investors with over $30 trillion of March 2021
Carney and Michael released its first in assets under management, have a market
Bloomberg advanced status report at CEOs of sovereign wealth funds
Task Force the discussion the One Planet The Government and asset managers made capitalization of over
members were around the TCFD Summit in New York of Japan holds statements to drive the support $19.8 trillion,
selected and and announced over City and announced first-ever of the TCFD recommendations
including over
announced. 230 supporters. over 500 supporters. TCFD Summit. as a global reporting standard.
859 financial firms,
JAN DEC SEP OCT NOV responsible
2016 2017 2018 2019 2020 for assets of
$175 trillion.
How you can support TCFD:
Visit fsb-tcfd.org/support-tcfd/
and submit the form to contact the TCFD or become a supporter.
32 33
33Overview of the TCFD 2020 Status Report
Overview of the The influence of the TCFD continues to grow with over 2,000+ supporters
from around the world.
TCFD 2020 Status Report Top Five Countries by
Number of Supporters
Japan 340
United Kingdom 265
“The Task Force’s recommendations United States 251
are intended to help build France 91
consideration of the effects of Australia 83
climate change into routine business
and financial decisions, and their
adoption can help companies Legend: 300+ 200-299 100-199 50-99 24-59 10-24Examples of Momentum for the TCFD
Examples of Momentum
for the TCFD
Australia Canada Hong Kong Japan
August 2019: The Australian May 2020: The Canadian government December 2020: A cross-agency October 2019/2020: The Ministry of
Securities and Investment established COVID-19 relief financing group chaired by the Hong Kong Economy, Trade and Industry (METI)
Commission updated its regulatory to large employers contingent, in Monetary Authority and Securities released TCFD Guidance 2.0 in 2020
guidance on climate-related part, on employers publishing and Futures Commission launched and together with Ministry of the
disclosure, encouraging TCFD-aligned TCFD-aligned disclosures. a strategic plan that requires Hong Environment and Financial Services
reporting and welcoming TCFD as Kong financial institutions and listed Agency supported the launch of the
the preferred market standard. European Union companies to disclose in line with TCFD Consortium of Japan public-
June 2019: The European TCFD recommendations no later private sectors platform to pursue
Brazil Commission incorporated the than 2025. climate-related financial disclosures.
September 2020: Banco Central Do TCFD recommendations into its METI held the first TCFD summit in
Brasil announced plans to disclose Guidelines on Reporting Climate-Related Ireland October 2019 and a second summit
in line with TCFD recommendations Information to support companies November 2020: The Minister on October 9, 2020. Japan currently
and issue regulation for banks in disclosing climate-related for Finance, Paschal Donohoe hosts the largest group of TCFD
to disclose in line with the information under the European T.D., announced Ireland’s support supporters, accounting for almost
recommendations in 2021/2022. Union’s reporting requirements. and endorsement for the work a quarter of the world’s total.
of the TCFD, highlighting that
the implementation of the TCFD
Recommendations represent
best practice for companies and
address the needs of investors
for greater transparency.
36 37Mexico Singapore Switzerland United Kingdom
September 2020: Banco de México June 2020: The monetary Authority January 2021: Switzerland became November 2020: The United
recommended providing a clear of Singapore indicated banks a formal supporter of TCFD to Kingdom announced that all
strategy on how regulation and should use international reporting complement the country’s sustainable publicly listed UK companies with
supervision will promote disclosure frameworks like the TCFD to guide finance policy agenda. The decision a premium listing will be required
of physical and transition risk their environmental risk disclosure. is in line with the Federal Council’s to “comply or explain” with the
analysis of financial institutions call to have Swiss companies from TCFD’s requirements by 2023, with
and corporations, following the South Africa mandatory TCFD-aligned disclosures
all economic sectors implement the
TCFD recommendations. May 2020: The National Treasury across non-financial and financial
TCFD recommendations, with the
of South Africa published a draft sectors of the UK economy by 2025.
Federal Council aiming to put forward
New Zealand technical paper recommending
legislation to make this binding.
September 2020: The New Zealand regulators and the financial
government announced it would sector establish standards on
introduce a mandatory climate- identifying, monitoring, and
related financial disclosure regime reporting environmental and
based on the TCFD framework. social risks, including climate-
related risks, that incorporate
the TCFD recommendations.
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fsb-tcfd.org
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