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TCFD · Task Force on Climate-related Financial Disclosures

TCFDthe UK guide

The Task Force on Climate-related Financial Disclosures (TCFD) shaped a decade of climate reporting. Four pillars, eleven recommended disclosures, widely-adopted globally. The TCFD disbanded in October 2023; its work is now monitored by the IFRS Foundation and its substance is embedded in IFRS S2 — and, from 2027, UK SRS S2.

Established
FSB · December 2015
Industry-led, recommendations published June 2017
Origin
Disbanded
October 2023
Monitoring transferred to IFRS Foundation from 2024
Status
UK successor
UK SRS S2 from 2027
FCA CP26/5 proposed mandatory for ~500 listed companies
01At a glance

TCFD — key figures

Scale of the framework: pillars, recommendations, jurisdictions, and the shift to ISSB monitoring.

4
Pillars
Governance · Strategy · Risk Mgmt · Metrics & Targets
11
Recommended disclosures
2 + 3 + 3 + 3 across the four pillars
Oct 2023
Disbanded
Remit fulfilled after final status report
1 Jan 2027
UK proposed mandatory
FCA CP26/5 — UK SRS S2 replaces TCFD Listing Rules
02History

TCFD — from 2015 to today

Eight years from FSB launch to disbandment, with the climate-disclosure baseline now living inside IFRS S2.

  1. DEC 2015FSB establishes TCFD at G20 request
  2. JUN 2017TCFD final recommendations published
  3. JAN 2021UK premium-listed companies in scope (FCA)
  4. APR 2022UK SI 2022/31 — 500+ employee companies
  5. JUN 2023ISSB issues IFRS S1 and S2; TCFD culminates
  6. OCT 2023TCFD disbanded; final status report
  7. JAN 2024IFRS Foundation takes over monitoring
  8. 1 JAN 2027UK SRS S2 proposed mandatory (replaces TCFD LRs)
03The four pillars

TCFD’s four-pillar framework

Governance, Strategy, Risk Management, Metrics & Targets. The architecture every modern climate-disclosure standard now uses — from IFRS S2 to UK SRS S2 to the EU’s ESRS E1.

Pillar 1 — Governance
2 recommended disclosures
Disclose the organisation’s governance around climate-related risks and opportunities. Covers board oversight (Gov-a) and management’s role (Gov-b). Treated as core for inclusion in mainstream financial filings, regardless of materiality assessment 4.
Pillar 2 — Strategy
3 recommended disclosures
Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy and financial planning where material. Includes risks/opportunities by time horizon (Strat-a), business and financial impact (Strat-b), and scenario analysis including a 2°C or lower scenario (Strat-c).
Pillar 3 — Risk Management
3 recommended disclosures
Disclose how the organisation identifies, assesses and manages climate-related risks. Covers identification processes (RM-a), management processes (RM-b), and integration with overall enterprise risk management (RM-c). Treated as core for inclusion in mainstream financial filings.
Pillar 4 — Metrics and Targets
3 recommended disclosures
Disclose the metrics and targets used to assess and manage climate-related risks and opportunities where material. Includes climate metrics (M&T-a), Scope 1/2/3 GHG emissions (M&T-b), and targets and performance against targets (M&T-c). The Task Force described metrics as the “connective tissue” linking the other three pillars 5.
04Why TCFD mattered

The framework that anchored climate disclosure

TCFD pulled climate disclosure out of the CSR report and into the mainstream financial filing. Eight years on, the architecture is everywhere — even though the Task Force itself is gone.

The ISSB Standards mark the culmination of the work of the TCFD. Companies applying IFRS S1 and IFRS S2 will meet the TCFD recommendations as the recommendations are fully incorporated into the ISSB Standards.

IFRS Foundation, July 2023
05TCFD in the UK

UK applicability today

Two parallel regimes apply TCFD in UK law: FCA Listing Rules for listed issuers, and SI 2022/31 / LLP regulations for large companies and LLPs. Both will be reshaped by FCA CP26/5 from 2027.

FCA Listing Rules
Listed companies
UKLR 6.6.6R(8) requires premium and standard listed companies to make TCFD-aligned disclosures in their annual financial report on a comply-or-explain basis. Effective for premium-listed financial years starting on or after 1 January 2021 and standard-listed financial years starting on or after 1 January 2022 6. FCA guidance: Technical Note 802.2 (April 2025).
SI 2022/31
Companies Act 2006
The Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022 7 require mandatory climate-related disclosure in the Non-Financial and Sustainability Information Statement of the strategic report for financial years starting on or after 6 April 2022.
In scope of SI 2022/31
Threshold test
Five categories of large UK entities 8: PIEs with 500+ employees, AIM companies with 500+ employees, other UK companies with 500+ employees and turnover >£500m, large non-traded LLPs with 500+ employees and turnover >£500m, and traded or banking LLPs with 500+ employees. See UK TCFD requirements for the full threshold breakdown.
FCA CP26/5
Replacement on the horizon
The FCA’s January 2026 consultation paper 9 proposes to delete the TCFD-aligned Listing Rules and replace them with mandatory UK SRS S2 for accounting periods beginning on or after 1 January 2027, subject to the Policy Statement expected autumn 2026.
06What replaced TCFD

From TCFD to ISSB to UK SRS

The TCFD didn’t vanish — it was absorbed. IFRS S2 keeps the four pillars and 11 recommendations intact while tightening almost every requirement. UK SRS S2 then layers six UK-specific amendments on top.

3 → 2 → 1

From three regimes to one

Companies in scope of all three (UK SRS S2, TCFD Listing Rules, SI 2022/31) face overlapping requirements during the 2026–2027 transition.

Once UK SRS S2 lands, the TCFD-aligned Listing Rules are proposed for deletion.

The Companies Act regime (SI 2022/31) is being reviewed under the Government's Modernising Corporate Reporting programme.

FCA CP26/5; DBT Modernising Corporate Reporting consultation
07FAQ

TCFD — frequently asked

What it is, whether it’s still required, the four pillars, the 11 disclosures, what replaced it, and the IFRS S2 differences.

What is TCFD?

The Task Force on Climate-related Financial Disclosures (TCFD) was an industry-led body established by the Financial Stability Board in December 2015 to develop voluntary, consistent climate-related financial risk disclosures.

The TCFD published its recommendations in June 2017, structured around four pillars (governance, strategy, risk management, metrics and targets) and 11 recommended disclosures.

The TCFD fulfilled its remit and disbanded in October 2023; the IFRS Foundation took over monitoring of company progress from January 2024.

Is TCFD still required in the UK?

Yes — for the time being.

UK FCA Listing Rule UKLR 6.6.6R(8) still requires premium and standard listed companies to make comply-or-explain TCFD-aligned disclosures.

Large UK companies (500+ employees plus other criteria) must publish climate-related disclosures aligned with TCFD under the Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022 (SI 2022/31).

The FCA proposes to replace the TCFD-aligned Listing Rules with mandatory UK SRS S2 for accounting periods beginning on or after 1 January 2027, subject to the Policy Statement on CP26/5 expected autumn 2026.

What are the four TCFD pillars?

Governance, Strategy, Risk Management, and Metrics & Targets.

This four-pillar structure is TCFD's lasting contribution — it has been adopted by IFRS S1 and IFRS S2, UK SRS S1 and S2, the EU's ESRS, and most other climate-disclosure regimes.

What are the 11 TCFD recommended disclosures?

Two under Governance (board oversight, management's role), three under Strategy (risks/opportunities by time horizon, business and financial impact, scenario analysis including 2°C or lower), three under Risk Management (identification, management, integration), and three under Metrics & Targets (metrics, Scope 1/2/3 GHG emissions, targets and performance).

See our /tcfd-framework page for the detailed breakdown.

What replaced TCFD?

IFRS S2 Climate-related Disclosures, issued by the ISSB in June 2023, fully incorporates the TCFD's four pillars and 11 recommendations.

The IFRS Foundation took over monitoring company progress from the TCFD in 2024.

In the UK, UK SRS S2 (the UK adoption of IFRS S2 with six UK-specific amendments) will replace the TCFD-aligned FCA Listing Rules from 1 January 2027 if the FCA's CP26/5 proposals are confirmed.

What is the difference between TCFD and IFRS S2?

IFRS S2 keeps TCFD's four pillars and 11 recommendations intact but tightens almost every requirement.

Key uplifts: financially quantified scenario analysis rather than narrative, mandatory Scope 1/2/3 emissions disclosure following GHG Protocol, industry-specific metrics, explicit connectivity to financial statements, and information provided at the same time as financial reporting.

08Continue across the cluster

The TCFD guide set

Five dedicated pages cover the full TCFD picture: requirements, framework, disclosures, UK-specific rules, and the migration to UK SRS S2.

Continue reading

Related guides & references