What is the Task Force on Climate Related Financial Disclosures (TCFD)?
The Task Force on Climate Related Financial Disclosures (TCFD) is an organisation that was established in December of 2015 with the goal of developing a set of climate-related financial- risk disclosures. Companies adopt these so that those businesses can inform investors and other members of the public about any climate-change risks they face. The organization was formed by the Financial Stability Board (FSB) as a means of coordinating disclosures among businesses affected by climate change. The Task Force is charged with considering “the physical, liability, and transition risks associated with climate change and what constitutes effective financial disclosures across industries,” per the organisation’s mission statement.
In response to the TCFD, the UK government has produced mandatory reporting requirements for companies within scope—see The Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022, and The Limited Liability Partnerships (Climate-related Financial Disclosure) Regulations 2022.
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