IFRS Foundation publishes comparison of IFRS S2 with the TCFD Recommendations

The IFRS Foundation has released a comparison of IFRS S2 Climate-related Disclosures with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
Recently, the ISSB has issued climate-related disclosures in line with the TCFD. These requirements are integrated and consistent with the TCFD’s core recommendations and 11 disclosures. IFRS S1 provides general requirements for disclosing sustainability-related financial information and incorporates TCFD recommendations. Building on IFRS S1, IFRS S2 outlines supplementary requirements for climate-related risks and opportunities.
IFRS S2 aligns with the core recommendations and eleven disclosures of TCFD, meaning companies adhering to ISSB Standards will automatically meet TCFD requirements without the need for additional application. However, IFRS S2 includes extra requirements such as disclosing industry-based metrics, information about their use of carbon credits, and additional details about financed emissions. Differences include wording, more detailed information, and additional requirements in IFRS S2, which may lead companies to disclose beyond TCFD’s core recommendations under IFRS S1.
Although the TCFD’s work is concluded, companies can still choose to utilize its recommendations, providing a helpful entry point for transitioning to ISSB Standards. The TCFD has significantly improved climate-related disclosures, and this progress is built upon by the ISSB.