As TCFD Comes of Age, Regulators Take a Varied Approach

  • As regulators around the world continue to align with Task Force on Climate-related Financial Disclosures (TCFD) standards, 2022 marks a step change, with national-level disclosure requirements for firms set to go live.
  • Our analysis indicates that national regulators are taking different approaches in their implementation of TCFD-aligned climate disclosure rules.
  • One commonality is that companies will be increasingly required to disclose forward-looking metrics so investors can assess their capacity to transition. Overall, however, national disclosure rules may continue to diverge.

The recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) have become a landmark reference for investors trying to integrate climate risks into asset-allocation and portfolio-management decisions. More than 2,600 organizations — including 1,069 financial institutions, with a total of USD 194 trillion of assets under management — have signed statements of support for the TCFD recommendations.

You can now read the full whitepaper at the link below