Legal & Regulatory News

Task Force on Climate-related Financial Disclosures publishes updated implementation guidance and guidance on metrics, targets and transition plans

On 14 October 2021, the Task Force on Climate-related Financial Disclosure (TCFD) published updated implementing guidance (the Implementation Guidance), superseding and replacing the 2017 Annex 'Implementing the Recommendations of the Task Force on Climate-related Financial Disclosures'.

The Implementation Guidance includes high level implementation guidance for all sectors, as well as supplemental guidance for the financial sector and non-financial groups, and covers, amongst other things, the following matters:

• information regarding the assessment of the financial impacts of climate-related issues;
• directions on the application of the TCFD recommendations, including materiality assessments and disclosure locations;
• recommendations and supporting recommended disclosures to assist institutions in making economic decisions;
• guidance providing context and suggestions for implementing the TCFD recommendations; and
• seven principles for effective disclosure to help guide developments in climate-related financial reporting.

On the same date, the TCFD also published its 'Guidance on Metrics, Targets, and Transition Plans' (the Metrics Guidance) which aims to support organisations that make TCFD-aligned disclosures in disclosing decision-useful metrics, targets, and transition plan information and linking those disclosures with estimates of financial impacts.

Click here to access the Implementation Guidance.

Click here to access the Metrics Guidance.