Introduction
The Task Force on Climate-Related Financial Disclosures (TCFD) was established by the Financial Stability Board (FSB) to develop more effective and efficient climate-related disclosure recommendations. On June 28, 2017, the TCFD introduced a set of recommended disclosure standards, providing a comprehensive framework for voluntary climate-related financial disclosures. This framework is designed to be reflected in financial reports, enabling companies and investors to assess climate-related risks and opportunities.
The establishment of the TCFD aims to enhance investor confidence, credit, and underwriting decisions. It also facilitates stakeholders' understanding of the concentration of carbon-related assets in the financial sector and the exposure of the financial system to climate-related risks. Currently, the TCFD consists of 32 members primarily selected by the FSB, including representatives from the economic sectors of G20 countries, financial market users, and disclosure preparers. Members comprise banks, insurance companies, asset managers, pension funds, large non-financial companies, and consulting firms.
