The 31-member global task force represents a broad range of financial sector and non-financial sector representatives, a careful balance of users and preparers of climate-related financial disclosures.
In developing its recommendations, the task force considered the ‘existing regimes for climate reporting across the G20 countries’. It found that most requirements were not focused on financial information. It also reviewed the financial filing requirements for public companies across the G20 countries.
The TCFD recommendations include a set of reporting principles. These principles help achieve high-quality and decision-useful disclosures that enable users to understand the impact of climate change on organisations. The principles, taken together, are designed to help organisations make clear the linkages and connections between climate-related issues and their governance, strategy, risk management and metrics and targets.
Principle 1: Disclosures should present relevant information.
Principle 2: Disclosures should be specific and complete.
Principle 3: Disclosures should be clear, balanced and understandable.
Principle 4: Disclosures should be consistent over time.
Principle 5: Disclosures should be comparable among organisations within a sector, industry or portfolio.
Principle 6: Disclosures should be reliable, verifiable and objective.
Principle 7: Disclosures should be provided on a timely basis.
Also reflecting the collaborative approach with the other sustainability standards and framework providers, the CDSB hosts the TCFD Knowledge Hub, and has partnered with other bodies on creating implementation resources including:
CDSB Framework application guidance for climate-related disclosures, which focuses on the first six reporting requirements of the CDSB Framework and provides checklists and suggestions for reporting.
TCFD Implementation Guide: Using SASB Standards and the CDSB Framework, which CDSB and SASB created, is a ‘how-to’ guide intended to facilitate implementation of the TCFD recommendations.
TCFD Good Practice Handbook, a joint CDSB- and SASB-produced follow-on to the Implementation Guide, identifies examples of good practices in reporting across the four core TCFD elements of governance, strategy, risk management, and metrics and targets. An updated version of this TCFD Good Practice Handbook was developed in 2021 and will remain available with the updated Framework and other CDSB resources.
