On 12 October 2023, the Task Force on Climate-related Financial Disclosures (TCFD) published its 2023 status report.

This report describes companies’ progress in making climate-related financial disclosures and highlights some of the challenges they face in making such disclosures, including challenges with incorporating climate-related risks into their financial statements.

Key findings from the status report include:

  • 97 of the 100 largest companies in the world have declared support for the TCFD, report in line with the TCFD recommendations, or both.
  • The percentage of public companies disclosing TCFD-aligned information continues to grow, but more progress is needed. For fiscal year 2022 reporting, 58% of companies disclosed in line with at least five of the 11 recommended disclosures—up from 18% in 2020; but only 4% disclosed in line with all 11.
  • Disclosure of climate-related financial information in financial filings is limited. On average for fiscal year 2022, information aligned with the 11 recommended disclosures was four times more likely to be disclosed in sustainability and annual reports than in financial filings.
  • The majority of jurisdictions with final or proposed climate-related disclosure requirements specify that such disclosures be reported in financial filings or annual reports.
  • Over 80% of the largest asset managers and 50% of the largest asset owners reported in line with at least one of the 11 recommended disclosures. Based on a review of publicly available reports, nearly 70% of the top 50 asset managers and 36% of the top 50 asset owners disclosed in line with at least five of the recommended disclosures.

For further updates on regulatory developments in the ESG space please visit our Financial Services Regulatory Developments in ESG hub.