TCFD is an acronym for the Taskforce on Climate-related Financial Disclosures.
The Financial Stability Board established the TCFD to develop recommendations for more effective climate-related disclosures that could promote more informed investment, credit, and insurance underwriting decisions and, in turn, enable stakeholders to understand better the concentrations of carbon-related assets in the financial sector and the financial system’s exposures to climate-related risks.
The Financial Stability Board believes that better information will allow companies to incorporate climate-related risks and opportunities into their risk management and strategic planning processes. As this occurs, companies’ and investors’ understanding of the financial implications associated with climate change will grow, empowering the markets to channel investment to sustainable and resilient solutions, opportunities, and business models.
FSB or Financial Stability Board
That does rather beg the question – who or what is the Financial Stability Board? The Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system.
The FSB was established in April 2009 as the successor to the Financial Stability Forum (FSF). At the Pittsburgh Summit, the Heads of State and Government of the G20 endorsed the FSB’s original Charter of 25 September 2009 which set out the FSB’s objectives and mandate, and organisational structure. The FSB has assumed a key role in promoting the reform of international financial regulation and supervision.
At the Cannes Summit in November 2011, the G20 called for a strengthening of the FSB’s capacity resources and governance through establishment of the FSB on an enduring organisational basis. On 28 January 2013, the FSB established itself as a not-for-profit association under Swiss law with its seat in Basel, Switzerland.
The FSB’s predecessor institution the FSF was founded in 1999 by the G7 Finance Ministers and Central Bank Governors following recommendations by Hans Tietmeyer, President of the Deutsche Bundesbank.
more information on the TCFD is available here