The Task Force on Climate-related Financial Disclosures (TCFD) has released its final annual update, revealing that companies are increasingly providing public disclosure on climate-related risks and opportunities. However, there is still room for improvement, as the majority of companies have not yet reported across all TCFD recommendations. The responsibility for monitoring climate-related reporting progress will now be transferred to the International Sustainability Standards Board (ISSB) of the IFRS Foundation. The new status report shows a significant increase in companies aligning with TCFD recommendations, with 90% of companies in 2022 disclosing in line with at least one recommendation. The report also highlights the sectors, regions, and sizes of companies with the highest disclosure rates. While progress is encouraging, more transparency and consideration of climate-related issues in financial statements are still needed.
TCFD report: https://www.fsb-tcfd.org/publications/