Understanding TCFD Relevant to all companies but written particualrly with listed companies and financial institutions mainly in mind, TCFD provides a set of recommendations regarding climaterelated financial disclosures; in the framework of four key pillars covering governance; metrics and targets; strategy; and risk management. Each pillar outlines specific disclosure recommendations. Governance This pillar requires disclosure of an organisation's governance around climate related risks and opportunities, and then
Risk management This pillar requires disclosure of how the organisation identifies, assesses, and manages climate-related risks, and then: a) Description of an organisation’s processes for identifying and assessing climate-related risks. b) Description of an organisation’s processes for managing climate-related risks. c) Description of how processes for identifying, assessing, and managing
a) Description of a board’s oversight of climate-related risks and opportunities. b) Description of management’s role in assessing and managing climaterelated risks and opportunities. Strategy This pillar requires disclosure of the actual and potential impacts of climaterelated risks and opportunities on an organisation’s businesses, strategy, and financial planning where such information is material, and then: a) Description of the climate-related risks and opportunities an organisation has identified over the short, medium, and long term. b) Description of the impact of climaterelated risks and opportunities on an organisation’s businesses, strategy, and financial planning. c) Description of the resilience of an organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. 7
Caption: Illustrating the structure of the TCFD (source T
climate-related risks are integrated into an organisation’s overall risk management strategy. Metrics and Targets This pillar requires disclosure of the metrics and targets used to assess and
