What a TCFD disclosure is
A TCFD disclosure is the part of an organisation's annual report that explains how it handles climate-related risks and opportunities, structured around the task force's recommendations1.
The Task Force published its final recommendations and supplemental guidance in 20171, establishing a framework designed for use in mainstream financial filings.
Rather than a separate document, it is woven into mainstream reporting so investors can read climate risk alongside financial performance1.
The underlying structure is explained in the TCFD framework guide.
UK Government non-binding guidance2 was published to help companies and LLPs meet the regulatory requirements.
The 11 disclosures
The recommended disclosures, grouped by pillar1:
Where they sit
For UK companies and LLPs in scope of the regulations, TCFD-aligned disclosures belong in the strategic report, within a non-financial and sustainability information statement under section 414CB of the Companies Act 20063.
The non-financial and sustainability information statement was introduced to the Companies Act by the 2022 climate disclosure regulations2.
Listed companies make their disclosures under the FCA rules on a comply-or-explain basis — see TCFD UK requirements for which rule applies to whom.
A listed company that complies with the FCA listing rules is generally taken to be meeting the Companies Act regulations as well2.
Quality expectations
UK reviewers, including the Financial Reporting Council5, have pushed for more quantitative, decision-useful disclosure rather than generic narrative — particularly on metrics, targets and scenario analysis.
The FRC's sustainability reporting FAQ5 sets out its expectations for reporting quality as the UK transitions to UK SRS.
- Be specific about time horizons and which parts of the business are affected
- Quantify where possible — metrics, targets and emissions, not just narrative
- Explain scenario analysis methodology and assumptions
- Keep disclosures consistent year on year so progress is comparable
Preparing for UK SRS S2
Because IFRS S24 — and the UK's UK SRS S2 endorsement — keeps the TCFD pillars1 and disclosures, a strong set of TCFD disclosures is the foundation for the successor regime.
IFRS S2 was published in June 20234, and UK SRS S2 followed as the UK endorsement on 25 February 2026.
The main step-ups are quantitative financial effects, mandatory scenario analysis and Scope 3.
See UK SRS vs TCFD and the standard itself at UK SRS S2.
Frequently asked questions
What is a TCFD disclosure?
A TCFD disclosure is a statement, within an organisation’s annual report, of how it governs, strategises for, manages and measures climate-related risks and opportunities, structured around the four TCFD pillars and 11 recommended disclosures.
How many TCFD disclosures are there?
Eleven recommended disclosures, grouped under the four pillars: two under Governance, three under Strategy, three under Risk Management, and three under Metrics & Targets.
Where do TCFD disclosures go in the annual report?
For UK companies and LLPs in scope of the regulations, the disclosures sit in the strategic report, within a non-financial and sustainability information statement; listed companies disclose under the FCA rules on a comply-or-explain basis.
Do TCFD disclosures carry over to UK SRS?
Yes. Because UK SRS S2 retains the TCFD pillars and disclosures, existing TCFD disclosures form the basis of UK SRS S2 reporting, with some areas — such as scenario analysis and Scope 3 — becoming firmer requirements.
