What is TCFD? 

The Task Force on Climate-related Financial Disclosures (TCFD) is a global initiative designed to promote consistent and transparent reporting on climate-related financial risks and opportunities. Established in 2015 by the Financial Stability Board (FSB), the TCFD aims to help companies and financial institutions disclose their climate-related risks and strategies in a way that is both useful and actionable for investors, lenders, and other stakeholders. 

 

As climate risk becomes an increasingly important factor for financial decision-makers, the TCFD framework provides the tools organizations need to assess, manage, and disclose their climate risks. The initiative is particularly focused on ensuring that these risks and opportunities are clearly communicated and integrated into companies’ broader financial and strategic planning processes. 

 

What does TCFD cover? 

The TCFD framework provides detailed guidance on how organizations can identify and disclose both climate-related risks and opportunities across four key areas: Governance, Strategy, Risk Management, and Metrics & Targets. These disclosures help companies align their reporting with global climate goals while ensuring transparency and accountability. 

  • Climate-Related Risks: The TCFD categorizes climate risks into two main groups: 
  • Physical Risks: These include risks related to the physical impacts of climate change, such as extreme weather events, rising sea levels, and increased temperatures. 
  • Transition Risks: These refer to risks associated with the transition to a lower-carbon economy, such as policy changes, shifts in market demand, and advancements in technology. 
  • Climate-Related Opportunities: TCFD also helps companies identify opportunities that arise from addressing climate risks, such as enhancing energy efficiency, investing in renewable energy, and adapting products and services to meet evolving market demands. 
  • Scenario Analysis: TCFD encourages companies to engage in scenario analysis, which involves modeling different potential future climate scenarios to understand the long-term impacts of climate change on their business. This is particularly important for organizations that want to ensure resilience and sustainability in an uncertain climate future. 
  • Global Adoption: The TCFD framework has gained widespread recognition and is rapidly becoming the global standard for climate-related financial disclosures. Many organizations across industries and geographies are adopting the framework, including financial institutions, energy companies, and manufacturers. TCFD’s alignment with other frameworks, such as the EU’s Corporate Sustainability Reporting Directive (CSRD), further enhances its importance for companies seeking to meet regulatory and investor expectations. 

 

YouSustain'sa TCFD services 

At YouSustain, we provide expert assistance to help companies of all sizes navigate the TCFD reporting process, whether they are new to the framework or looking to enhance their disclosures. Our services include: 

  • Beginner, Intermediate, and Advanced TCFD Reports: We tailor our services to your organization’s specific needs, offering support at every level of TCFD reporting. From helping organizations just starting out to conducting advanced scenario analysis, we ensure that your company is fully aligned with TCFD recommendations. 
  • Scenario Analysis: For companies seeking to deepen their understanding of climate risks and opportunities, we provide comprehensive scenario analysis. This helps organizations anticipate how different climate scenarios might impact their business over time, ensuring better preparation for potential risks. 
  • Internal Workshops: We also facilitate internal workshops with your company’s key stakeholders. These workshops ensure that your team is well-versed in TCFD reporting, helping you build internal capacity and fully integrate TCFD recommendations into your company’s strategy and risk management processes. 
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