What is the TCFD?
The Task Force on Climate-related Financial Disclosures (TCFD) was established by the Financial Stability Board in 2015 to develop voluntary, consistent climate-related financial risk disclosures for use by companies, banks, and investors. The TCFD’s June 2017 final recommendations became the de facto global framework for climate disclosure, organising disclosures around four core pillars: governance, strategy, risk management, and metrics and targets.
Four pillars and 11 recommendations
- Governance: board oversight of climate risks/opportunities; management’s role.
- Strategy: identified short/medium/long-term risks and opportunities; scenario analysis (including 2°C or lower scenarios); resilience of business model.
- Risk Management: processes to identify, assess, and manage climate-related risks; integration into enterprise risk management.
- Metrics and Targets: metrics used; Scope 1, 2, and material Scope 3 GHG emissions; targets and performance.
From TCFD to IFRS S2
In October 2023, the FSB transferred TCFD’s monitoring role to the IFRS Foundation. The ISSB’s IFRS S2 Climate-related Disclosures standard fully incorporates and supersedes TCFD, providing the consolidated global baseline. Many jurisdictions (UK, Japan, Brazil, Singapore, Türkiye) have adopted or are adopting ISSB standards directly or via local equivalents. EU CSRD applies the European Sustainability Reporting Standards (ESRS) which are broader than TCFD but TCFD-aligned for climate.
Türkiye’de TCFD/IFRS S2
KGK (Kamu Gözetimi Muhasebe ve Denetim Standartları Kurumu) Mayıs 2024 itibarıyla IFRS S1 ve S2’yi TSRS 1 ve TSRS 2 (Türkiye Sürdürülebilirlik Raporlama Standartları) olarak benimsedi; uygulama kapsamı borsada işlem gören büyük şirketler ve büyük finans kuruluşları için kademeli olarak başladı. Türk şirketleri için TCFD-aligned raporlama artık zorunlu uyum gündemidir.
Do: map disclosures against TCFD/IFRS S2’s four pillars; conduct climate scenario analysis with at least one 1.5/2°C scenario; develop measurable targets and report progress.
Don’t: treat climate disclosure as a sustainability-team-only exercise — TCFD requires CFO, risk, and board engagement.