# TCFD Compliance

Sustainability & Carbon Compliance

###### Task Force on Climate-related Financial Disclosures

## TCFD Compliance Now Underpins Mandatory Climate Disclosure in 36+ Jurisdictions. Can You Report Across All Four Pillars?

TCFD compliance demands structured climate risk disclosure across governance, strategy, risk management, and metrics—with Scope 1, 2, and 3 emissions data sourced from every tier of your supply chain. ISSB Standards (IFRS S2) have absorbed the full TCFD framework, and jurisdictions from the UK to Japan are codifying these requirements into law. Continuous compliance monitoring is no longer optional.

Certivo automates supplier emissions data collection from declaration to audit-ready climate disclosure.

## Regulation Overview

**Jurisdiction**  
Global (mandatory in UK, EU, Japan, New Zealand, Singapore, Hong Kong, Australia, Brazil; referenced in California SB 261)  
**Regulatory Body**  
Financial Stability Board (FSB); monitoring transferred to IFRS Foundation / ISSB in 2024  
**Regulation Number**  
TCFD Recommendations (2017); IFRS S2 Climate-related Disclosures (2023)  
**Effective Date**  
Recommendations published June 2017; TCFD disbanded October 2023; ISSB Standards effective from January 2024 onward by jurisdiction  
**Official Source**  
[FSB TCFD](https://www.fsb-tcfd.org/)  
**Key Threshold**  
All material climate-related risks and Scope 1, 2, and 3 GHG emissions

# What is TCFD?

TCFD is the globally adopted framework for climate-related financial disclosure and the structural foundation of every major climate reporting regime in force today. For supply chain and compliance teams, the primary obligation is producing consistent, comparable data on how climate-related risks and opportunities affect business strategy, financial planning, and operations—including supplier-level emissions across the full value chain.

Nearly 5,000 organizations across 103 jurisdictions formally supported the TCFD before it disbanded in October 2023. The ISSB's IFRS S2 standard now fully incorporates all 11 TCFD recommended disclosures, with 36+ jurisdictions adopting or finalizing adoption as of early 2026. Companies placing products on markets governed by EU CSRD, UK SRS, or California SB 261 must produce TCFD-aligned climate disclosures backed by auditable supplier data. AI-native compliance automation is essential for managing the volume and complexity of multi-tier supply chain transparency required under these regimes.

## Key Components / Sub-Frameworks

### Obligation
**Disclose board-level oversight structures and management accountability**  
**Governance**  
Board oversight and management's role in climate-related risks and opportunities

### Obligation
**Disclose risks/opportunities over short, medium, and long term; conduct scenario analysis**  
**Strategy**  
Actual and potential impacts on business, strategy, and financial planning

### Obligation
**Disclose how climate risks are integrated into overall risk management**  
**Risk Management**  
Processes for identifying, assessing, and managing climate-related risks

### Obligation
**Disclose Scope 1, 2, and 3 GHG emissions; set and track reduction targets**  
**Metrics & Targets**  
Metrics used to assess climate risks and performance against targets

### Obligation
**Mandatory in adopting jurisdictions; requires industry-specific metrics and XBRL tagging**  
**IFRS S2**  
ISSB climate-related disclosure standard absorbing full TCFD framework

### Obligation
**Required under Strategy pillar to demonstrate business resilience**  
**Scenario Analysis**  
Resilience testing against climate scenarios (e.g., IEA, IPCC pathways)

## Key Compliance Requirements

### Who Must Comply
- UK premium-listed and standard-listed companies, banks, insurers, and large private companies (500+ employees, £500M+ turnover)
- EU companies in scope of the Corporate Sustainability Reporting Directive (CSRD)
- Japanese listed companies required to file TCFD-aligned disclosures under FSA guidance
- New Zealand financial sector entities under mandatory climate-related disclosure legislation
- Singapore SGX-listed companies in designated high-impact industries
- California-based or California-operating companies with $500M+ revenue (SB 261)
- Australian large reporters under AASB sustainability standards
- Any company facing investor, lender, or customer requests for TCFD/ISSB-aligned data

# Key Thresholds

#### Scope 1, 2, and 3
All material GHG emissions requiring disclosure under IFRS S2

#### $500M revenue
California SB 261 threshold for mandatory TCFD-aligned climate risk reporting

#### 500 employees / £500M turnover
UK threshold for mandatory TCFD-aligned disclosure under Companies Act regulations

#### Scenario analysis
Required under Strategy pillar for all reporting entities

## Core Obligations

1. **Governance Disclosure**  
   Disclose board oversight and management accountability for climate risk  
   **DEADLINE**  
   Annual, within financial reporting cycle

2. **Strategy Disclosure**  
   Describe climate risks/opportunities and scenario analysis results  
   **DEADLINE**  
   Annual, in mainstream financial filings

3. **Risk Management Disclosure**  
   Detail processes for identifying, assessing, and managing climate risks  
   **DEADLINE**  
   Annual, integrated with enterprise risk reporting

4. **Metrics & Targets Disclosure**  
   Report Scope 1, 2, and 3 GHG emissions; disclose reduction targets and progress  
   **DEADLINE**  
   Annual, with limited assurance trending toward reasonable assurance

5. **IFRS S2 Transition**  
   Align existing TCFD disclosures with IFRS S2 paragraph-level requirements  
   **DEADLINE**  
   Jurisdiction-dependent; UK SRS from FY 2027, Brazil from FY 2026

## TCFD-Specific Pain Points

### The Scope 3 Data Gap
IFRS S2 now mandates Scope 3 value chain emissions. You need verified emissions data from 200+ suppliers across four tiers.

### The Scenario Analysis Requirement
TCFD's Strategy pillar requires climate scenario analysis demonstrating business resilience under multiple pathways.

### The Assurance Escalation
Regulators are moving from limited to reasonable assurance requirements for climate disclosures.

## Certivo in Action

### Certivo in Action—TCFD Workflow

**GET EVIDENCE IN**  
Collect Emissions Declarations and Climate Data from Every Supplier—Without the Chasing

**MAKE SENSE OF IT**  
Know Instantly Where Your Scope 3 Emissions Stand and Which Suppliers Create Disclosure Gaps

**PROVE COMPLIANCE OUT**  
Generate TCFD-Aligned Disclosure Packages in Hours, Not Months

## Related Regulations

**EU CSRD**  
Incorporates TCFD-aligned principles within European Sustainability Reporting Standards (ESRS)

**IFRS S2**  
ISSB standard fully absorbing all 11 TCFD recommended disclosures

**UK SRS**  
UK Sustainability Reporting Standards based on ISSB, replacing TCFD-specific mandates from 2027

**California SB 261**  
Requires TCFD-aligned climate risk reports for companies with $500M+ revenue

## Industries Most Impacted

### Finance & Insurance
Your Pain Point: Portfolio-level climate risk aggregation; TCFD mandatory for banks and insurers in UK, Japan, Singapore

### Energy & Infrastructure
Your Pain Point: Physical risk exposure across distributed assets; Scope 1 intensity metrics; transition risk quantification

### Consumer Goods
Your Pain Point: High SKU counts; Scope 3 dominates; investor and retailer pressure for TCFD-aligned data

## Return on Investment

**80% Reduction in Disclosure Labor**  
From Data Collection to Exception Management

**4 hours To Audit-Ready Disclosure**  
Four-Pillar Disclosure Acceleration

**Real-Time Jurisdictional Sync**  
Proactive TCFD Compliance Monitoring

## Key Statistics

- 36+ Jurisdictions tracked with automatic ISSB adoption sync
- 99.2% Emissions data extraction accuracy from supplier declarations
- 95% Supplier response rate with CORA-powered campaigns

## Frequently Asked Questions

**What organizations are subject to TCFD compliance obligations?**  
Any organization operating in a jurisdiction that has adopted TCFD-aligned or ISSB-based disclosure requirements must comply.

**What are the penalties for TCFD non-compliance?**  
Penalties vary by jurisdiction and enforcement mechanism.

**How does Certivo handle the transition from TCFD to IFRS S2?**  
Certivo maintains continuous sync with both legacy TCFD requirements and incoming IFRS S2 obligations across all adopting jurisdictions.

**What supplier data formats does Certivo accept for TCFD reporting?**  
Certivo accepts any format: PDF sustainability reports, Excel emissions worksheets, CDP response exports, GRI data tables, GHG Protocol calculation files, and freeform supplier responses.

**Does Certivo support Scope 3 emissions data collection across multi-tier supply chains?**  
Yes. Certivo's automated supplier data collection and portals reach beyond Tier 1 to collect emissions data from sub-tier suppliers contributing to your Scope 3 profile.