2022 TCFD Status Report: Increase in Climate-Related Disclosures

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The Task Force on Climate-Related Financial Disclosures (TCFD) recently published its 2022 Status Report (October 2022) noting an increase in the number of companies disclosing TCFD-aligned information. TCFD provides the foundation for businesses to consider and integrate the impacts of climate-related risks and opportunities.

The 2022 annual status report marks 5 years since the release of the final TCFD Recommendations (2017 report) that set out the framework for helping businesses disclose climate-related financial information. The report describes the alignment of companies’ reporting with the TCFD recommendations and the progress associated with the implementation of the recommendations over the last five years. The 2022 report highlights the rapid acceleration of how the implications of climate change are becoming more and more mainstream throughout the financial markets, as well as the increase of commitments to net-zero emissions transition plans.

2022 Report - Notable Findings

The 2022 report reveals that since the publication of the 2021 status report, the percentage of companies disclosing TCFD-aligned information continues to grow; however, more urgent progress is needed.

According to the survey, for fiscal year 2021 reporting:

  • 80% of companies disclosed in line with at least 1 of the 11 recommended disclosures;

  • However, only 4% of companies disclosed in line with all 11 recommended disclosures.

It is interesting to see that although significant progress has been made, with Europe leading the way (the average level of disclosure for European companies was 60% for fiscal year 2021), there is still room for improvement.

Another key finding is that public companies remain more likely to disclose information on their climate-related risks and opportunities (Strategy a in the TCFD recommendations), while the disclosure of the resilience of the companies’ strategies through the incorporation of scenario analysis (Strategy c in the TCFD recommendations) remains the least reported disclosure.

You can read the full report here: https://www.fsb-tcfd.org/publications

Contact us or call today at (800) 508-8034 to speak with one of our TCFD Sustainability consultants.

Blog Author

Anastasia Kyrmanidou, Ph.D.
Senior Sustainability Analyst
KERAMIDA Inc.

Contact Anastasia at akyrmanidou@keramida.com