TCFD reporting

June 2017: the Task Force on Climate-related Financial Disclosures, set up by the Financial Stability Board at the end of 2015, publishes its recommendations, built on four pillars: climate governance, strategy in the face of physical and transition risk (scenario analysis included), risk management, and metrics with quantified targets. Voluntary at first, the framework became the de facto international reference, then a legal requirement in several jurisdictions, starting with the UK for its largest listed companies and financial institutions from the 2022 financial year. An insurer reports on it from both sides of the balance sheet. It discloses the climate risk on its own book, as an institutional investor exposed to stranded assets, and the climate risk it carries for policyholders on the liability side, a dual lens rarely asked of a company in another sector. IFRS S2, issued in June 2023, absorbed and extended the framework, and the task force was wound up shortly after. The four pillars are still the grammar the mandatory standards were built on, and current climate reporting does not read properly without them.