FAQ: What are TCFD reports?

TCFD or Task Force on Climate-related Financial Disclosures reports are a framework that organisations follow to disclose their potential climate-related financial impact, providing stakeholders, such as investors, lenders, and insurance underwriters with this information. The TCFD is an industry-led initiative and is currently voluntary for organisations outside the UK. TCFD recommendations provide guidance for companies on how to disclose information about their governance, strategy, risk management, and metrics and targets related to climate change. TCFD aims to improve the quality and comparability of climate-related financial disclosures, supporting the financial industry in making informed decisions about the allocation of capital. A TCFD report may also provide information on how an organisation is adapting to a low-carbon and more sustainable future, positioning itself to manage the financial risks and opportunities associated with climate change.