TCFD-aligned disclosure application guidance

This TCFD-aligned disclosure application guidance applies to reporting periods from 2023-24.

Scope

This guidance applies to all departments (ministerial and non-ministerial), as well as some central government and wider public sector bodies that meet certain criteria, or where they have been directed or instructed to follow this guidance by their respective relevant authority.

Other central government and public sector bodies may voluntarily choose to follow this guidance in full or in part.

HM Treasury has set out a three-year phased approach to implement the TCFD recommendations in central government annual reports and accounts.

Phase 1

This guidance sets out the disclosure requirements for the first year of implementation. In-scope reporting entities must include the following TCFD-related information in their annual reports:

• a TCFD Compliance Statement – summarising the extent this guidance has been complied with, the reasons for non-compliance, and providing an overview of plans for future reporting.
• the TCFD Governance recommended disclosures, including:

(a) a description of the board’s oversight of climate-related issues.

(b) a description of management’s role in assessing and managing climate-related issues.

• and, where available as part of an entity’s existing reporting processes, the TCFD Metrics and Targets recommended disclosure (b - adapted). Specifically, Scope 1, Scope 2, and, Scope 3 (business travel only) greenhouse gas (GHG) emissions. This aligns with existing requirements in the Sustainability Reporting Guidance (SRG).

Phase 2 and Phase 3

Application guidance for upcoming phases will be published in due course. Please refer to the Financial Reporting Advisory Board (FRAB) minutes for updates.