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 recommendations.
Rather than a separate document, it is woven into mainstream reporting so investors can read climate risk alongside financial performance.
The underlying structure is explained in the TCFD framework guide.
The 11 disclosures
The recommended disclosures, grouped by pillar:
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 2006.
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.
Quality expectations
UK reviewers, including the Financial Reporting Council, have pushed for more quantitative, decision-useful disclosure rather than generic narrative — particularly on metrics, targets and scenario analysis.
- 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 S2— and the UK's UK SRS S2 endorsement — keeps the TCFD pillars and disclosures, a strong set of TCFD disclosures is the foundation for the successor regime.
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.
