TCFD Report: Requirements, Timeline and How to Prepare

TCFD (Task Force on Climate-related Financial Disclosures) provides a framework for companies to disclose climate-related financial risks and opportunities in their mainstream financial reports. The framework is organized around four thematic areas: Governance, Strategy, Risk Management, and Metrics and Targets. Each area includes specific recommended disclosures. TCFD distinguishes between physical risks (acute and chronic) and transition risks (policy, legal, technology, market, reputation) related to climate change. While originally voluntary, TCFD-aligned disclosure is now mandatory in several jurisdictions and forms the basis for ISSB climate standards (IFRS S2).

• Listed companies in jurisdictions with mandatory TCFD alignment (UK, EU, New Zealand, etc.)
• Banks, insurers, asset owners, and asset managers
• Companies seeking to meet investor expectations for climate risk disclosure
• Indian companies with international investors or overseas listings

Governance:

• Board oversight of climate-related risks and opportunities
• Management's role in assessing and managing climate risks

Strategy:

• Climate-related risks and opportunities identified over short, medium, and long term
• Impact on business, strategy, and financial planning
• Resilience of strategy under different climate scenarios (including 2°C or lower)

Risk Management:

• Processes for identifying and assessing climate-related risks
• Processes for managing climate-related risks
• Integration into overall risk management

Metrics and Targets:

• Climate-related metrics (e.g., Scope 1, 2, and 3 GHG emissions)
• Targets for climate-related performance (e.g., emissions reduction targets)
• Climate-related performance against targets

• Climate risk assessment requires scenario analysis and forward-looking judgment
• Scope 3 emissions data is difficult to collect across value chains
• Integrating climate risk into financial reporting requires cross-functional coordination between sustainability and finance teams
• TCFD disclosures must be consistent with other climate frameworks (CDP, ISSB, ESRS)
• Many companies lack board-level climate governance documentation

• TCFD-aligned template: Pre-built structure covering all four thematic areas and recommended disclosures
• Climate risk scenario support: Templates for documenting physical and transition risk assessments
• Metrics and targets tracking: GHG emissions inventory (Scope 1, 2, 3) and target-setting support
• Cross-framework output: Generate TCFD content alongside ESRS, IFRS S2, and CDP reports
• AI-assisted drafting: First draft of TCFD disclosures from uploaded climate policy, risk, and metrics data

1. Establish climate governance: Document board oversight and management responsibility for climate risk
2. Identify climate risks and opportunities: Map physical and transition risks across short, medium, and long-term horizons
3. Conduct scenario analysis: Assess strategy resilience under different climate pathways (e.g., 2°C scenario)
4. Define metrics and targets: Establish GHG emissions inventory and climate-related performance targets
5. Disclose in mainstream filings: Generate TCFD content and include in annual reports or standalone climate disclosures