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Climate-Related Disclosures: Comparing TCFD and IFRS S2. And support from IOSCO.

Yesterday the International Organization of Securities Commissions (IOSCO) announced its endorsement of the ISSB Standards following its comprehensive review of the new IFRS S1 and IFRS S2.

Good to see global regulatores speeding up and joining forces day after day.

About one week ago, the same IOSCO published a report titled "Compliance Carbon Markets", guiding regulators how to develop sound and well-functioning carbon credit markets in their jurisdictions.

About this convergence of initiatives, you mas also recall that two weeks ago the IFRS Foundation annouced to be taking over the monitoring of the progress on companies’ climate-related disclosures from the FSB Task Force on Climate-related Financial Disclosures (TCFD).

And last Monday, to further support it, the IFRS Foundation published a comparison of the requirements involving IFRS S2 Climate-related Disclosures and the TCFD recommendations.

Click at the image below (by Rabobank Sustainable Business Advisory & Carbon Bank) for a 12 pages document, tables comparing 14 recommendations / topics, grouped as Governance, Strategy, Risk Management, Metrics and Targets

There are a few differences, though. Specifically, IFRS S2:

  • uses different wording to capture the same information as the TCFD recommendations, but broadly consistent;

  • requires more detailed information that is in line with the TCFD recommendations; and

  • differs from the TCFD guidance—but not from the TCFD overall recommendations—mainly by providing some additional requirements and guidance.

According to the press release, companies applying IFRS S1 and IFRS S2 will meet the TCFD recommendations as they are fully incorporated into the ISSB Standards. Companies can continue to use the TCFD recommendations should they choose to do so, and some companies may still be required to use the TCFD recommendations.

About all these acronyms, click here.


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“Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may fear less.”

“I am among those who think that science has great beauty”

Madame Marie Curie (1867 - 1934) Chemist & physicist. French, born Polish.

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