What are the TCFD recommendations?
TCFD groups 11 disclosures under four pillars: governance, strategy, risk management, and metrics and targets. They cover oversight, climate effects, risk processes, measures, and targets. Keslio's TCFD guide details each disclosure.
Why do the TCFD recommendations matter to you?
The TCFD disbanded in October 2023, but its recommendations remain available and are fully incorporated into the ISSB Standards. You may still meet TCFD in an investor request, CDP questionnaire, or rule built on its structure. Confirm the document, period, and whether it expects TCFD or a standard such as IFRS S2.
How do the TCFD recommendations work?
Build a table with one row for each of the 11 disclosures, then assign an owner and supporting record to each row. For governance, keep board mandates and minutes plus management role descriptions. IFRS S2 paragraphs 5-7 cover oversight and management. CDP 2026 questions 4.1.1, 4.1.2, 4.3, and 4.3.1 test board and executive accountability.
ESRS 2 GOV-1 asks who is responsible for sustainability oversight. GOV-2 asks what sustainability information reaches those people, how often they receive it, and what they addressed. ESRS E1 paragraph 12 links the climate section to the wider ESRS 2 governance disclosures. Paragraph 13 asks whether climate performance affects remuneration.
What mistakes should you avoid?
- Submitting four headings without checking all 11 disclosures.
- Treating TCFD as law without identifying the applicable rule.
- Claiming oversight without a mandate, minutes, or reporting frequency.
Are the TCFD recommendations mandatory?
No. The duty comes from the law, listing rule, contract, investor request, or reporting decision that adopts it.
Are TCFD and IFRS S2 the same?
No. IFRS S2 incorporates the TCFD recommendations and adds requirements such as industry-based metrics, more detailed GHG disclosures, and information about planned carbon-credit use and financed emissions.
What should you provide for a TCFD request?
Send the 11-row crosswalk, owners, period, governance records, risk register, scenario assumptions, GHG calculations, targets, and documented gaps.