What is the TCFD?

To support the goals of the Paris climate agreement, the Financial Stability Board (FSB) created the Task Force on Climate-related Financial Disclosure (TCFD) in 2015. This voluntary disclosure platform was designed to “provide a framework for companies and other organizations to develop more effective climate-related financial disclosures through their existing reporting processes” and support “more informed investment, credit [or lending], and insurance underwriting decisions”.

In February 2019, the UN Principles of Responsible Investment (PRI) indicated its climate risk strategy and governance indicators, which are aligned with the TCFD guidelines, would become mandatory for PRI signatories from 2020 but voluntary to disclose publicly

MSCI’s TCFD based reporting brief is aimed at institutional investors intending to report on their climate transition risk management processes according to the TCFD recommendations. This guide steps through the core elements of the TCFD framework through an institutional investor lens, supported with examples.

How we can help you align with the TCFD recommendations

Integrating climate change solutions into your investment process

MSCI ESG Climate Change Solutions give you access to a wide range of tools and data designed to enable you to integrate climate change risks and opportunities along your entire investment management value chain and disclose according to the TCFD guidelines.