• Set up in 2015 By –FSB (Financial Stability Board)
  • To develop consistent climate related financial risk and
  opportunities disclosures
  • Provides information to -Companies, Banks, Investors, Stakeholders
  • Promote transparency, enable better decision making in capital
  allocation
• WHY DISCLOSE
• • Understand your climate related risks and opportunities • Enhance risk management and strategic planning • Strengthen investor confidence and access to capital • Attract environment friendly customers investors and employees • Comply with evolving regulations and reporting mechanisms

THE OUTPUT
June 2023 –Release of the International Sustainability
Standards Board’s (ISSB) inaugural standards

1. IFRS S1
   • General Requirements for Disclosure of Sustainability
   Related Financial information
2. IFRS S2
   • Climate-related disclosures
   ISSB responsibility – Monitoring Progress on the state of climate
   related financial disclosures by companies

TCFD –FOUR CORE ELEMENTS to disclose

A. Governance 1. Board’s oversight of climate-related (CR) risks & opportunities 2. Management’s role in assessing and managing CR risks &
opportunities

B. Strategy

1. CR risks & opportunitiesthe organization has identified over the
   short, medium and long term
2. Impactof the same on the organization’s businesses, strategy
   and financial planning
3. Resilience of the organization’s strategy, taking into
   consideration different CR scenarios, including a 2°C or lower
   scenario

C. Risk Management

1. Organization’s processes for identifying and assessing CR risks
2. Organization’s processes for managing CR risks
3. Processes for identifying, assessing, and managing CR risks are
   integratedinto the organization’s overall risk management

D. Metrics and Targets

1. Metrics used by the organization to assess CR risks and
   opportunities in line with its strategy and risk management
   process
2. Disclose Scope 1, Scope 2and, if appropriate, Scope 3
   greenhouse gas (GHG) emission and the related risks
3. Targetsused by the organization to manage CR risks and
   opportunities and performance against target