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TCFD

A global framework that guides companies and investors to disclose climate-related financial risks and opportunities, shaping how markets integrate climate into decision-making.

The TCFD is a global initiative launched by the Financial Stability Board (FSB) to develop consistent climate-related financial risk disclosures for use by companies, banks, and investors. It focuses on governance, strategy, risk management, and metrics & targets.

Although originally centred on climate, the TCFD has strongly influenced subsequent frameworks, including the TNFD, and remains a key reference for financial reporting, regulatory compliance, and investor engagement.

Type

Jurisdiction

Sector Relevance

Framework

Global

Business, Finance, Policy

Established / Active Since

2015

Maintained By / Organised By

Financial Stability Board (FSB), with secretariat hosted by the FSB until 2023. From 2024, its monitoring functions are integrated into the IFRS Foundation / ISSB.

Official Resources

  • Web: https://www.fsb-tcfd.org
  • Wikipedia: https://en.wikipedia.org/wiki/Task_Force_on_Climate-related_Financial_Disclosures

Relationship to Lemu

While Lemu is not directly a member, TCFD laid the groundwork for TNFD, where Lemu is a Forum Member. Its influence ensures that climate and nature are addressed in parallel within sustainability disclosure.

Example in Practice

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Banking: Global banks disclose portfolio exposure to climate risks, e.g. carbon-intensive sectors, aligning lending strategies with TCFD.
💡
Energy: Oil & gas firms report scenario analyses of climate transition risks, helping investors understand long-term resilience.
💡
Retail: Consumer goods companies disclose supply chain vulnerabilities to climate disruptions, supporting investor assessments of operational risk.
Updated on Aug 31, 2025