TCFD gave the world a common shape for climate-related financial disclosure — governance, strategy, risk management, metrics and targets. The ISSB's IFRS S1 and S2 standards now carry that shape forward as the global baseline, with TCFD's own monitoring wound down into them.
TCFD set out recommendations for disclosing climate-related financial risks and opportunities across four pillars: governance, strategy, risk management, and metrics and targets. The ISSB built on TCFD to issue IFRS S1 (general sustainability-related disclosure) and IFRS S2 (climate), which are designed to be a global baseline and which incorporate the TCFD recommendations.
How and when these apply depends on jurisdiction. The UK published its own endorsed versions — UK SRS S1 and S2 — on 25 February 2026 for voluntary use, with the FCA consulting on mandatory reporting for certain listed companies from 2027; adoption varies elsewhere. Firms should confirm what applies to them, and when, against the relevant standards and local requirements.
Following the TCFD shape carried into IFRS S2, climate disclosure generally asks a firm to address, in outline:
The strategy and scenario elements are where climate disclosure gets hard: they need physical and transition scenarios run against the business and translated into financial impact — work most firms rebuild each reporting cycle.
Abgalis carries climate as one of seven live risk domains wired to the balance sheet, so scenario runs and the metrics behind the disclosure draw on one current model rather than a standing start each year — while the disclosure itself, and its assurance, remain owned by the firm. It is analytics, not authority. See how this lands for energy, insurers and banks, and the related expectations in PRA SS5/25.
The Task Force on Climate-related Financial Disclosures set out recommendations for disclosing climate-related financial risks and opportunities across four pillars — governance, strategy, risk management, and metrics and targets. It became the common shape for climate disclosure and has been carried forward into the ISSB standards.
IFRS S1 and S2 are the ISSB's sustainability disclosure standards — S1 for general sustainability-related financial disclosure and S2 for climate. They build on TCFD and are designed as a global baseline. In the UK they are endorsed as UK SRS S1 and S2, published on 25 February 2026 for voluntary use, with mandatory reporting proposed for certain listed companies from 2027. Firms should confirm against the standards and local adoption.
The TCFD recommendations have been incorporated into the ISSB standards, and the TCFD's own monitoring role has been wound down, with the ISSB taking over disclosure monitoring. The four-pillar shape persists inside IFRS S2. Firms should confirm the current position in their jurisdiction.
In outline: governance of climate risk, the strategic impact tested through scenario analysis, how climate risk is managed and integrated, and the metrics and targets used — including greenhouse-gas emissions under IFRS S2. The standards themselves are the authoritative source.
Abgalis carries climate as one of seven live domains wired to the balance sheet, so the scenario analysis and metrics behind the disclosure draw on one current model rather than being rebuilt each cycle. The disclosure and its assurance remain owned by the firm.
No. The climate disclosure and any assurance over it are the firm's responsibility. Abgalis provides the underlying scenario analysis and metrics that inform it; it does not author, sign or assure the disclosure.
This page is a general explainer, not legal, regulatory or accounting advice. Firms should refer to the TCFD recommendations, the ISSB's IFRS S1 and S2 and their local adoption, and take their own advice. Abgalis is a risk data and analytics provider and is not a regulated or authorised firm; disclosures and assurance remain the firm's responsibility.
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