Following the FSB’s report (page 6) that the TCFD will be disbanded after its forthcoming annual report on the status of organizations’ TCFD-aligned disclosures (we most recently reported on here), the IFRS released this instructive comparison of the ISSB’s new climate-related disclosure standard (IFRS S2) with the TCFD recommendations.
As recently reported, the TCFD recommendations formed the basis for both IFRS S2 and IFRS S1, the ISSB’s new general sustainability disclosure standard. Disclosure in accordance with IFRS S2 (which supplements IFRS S1) satisfies the TCFD recommendations in their entirety; however, as detailed in the comparison, IFRS S2 includes some additional requirements that are not captured by the TCFD recommendations. Even though the TCFD will be disbanded, companies may still choose to report in accordance with the TCFD recommendations and, in fact, the IFRS suggests companies consider using the TCFD recommendations as a tool to transition to the more fulsome ISSB standards.