TCFD final status report shows climate disclosure rising but incomplete

The 2023 TCFD Status Report, its sixth and final update, found 58% of companies disclosed in line with at least five of eleven recommended disclosures for fiscal 2022, up from 18% in 2020. With oversight transferring to the ISSB, the findings shape disclosure expectations Indian firms increasingly face.

The 2023 TCFD Status Report, the sixth and final annual update before oversight transfers to the ISSB, found rising but incomplete adoption. For fiscal 2022, 58% of companies disclosed in alignment with at least five of the eleven recommended disclosures, up sharply from 18% in 2020, though only 4% aligned with all eleven. Between fiscal 2020 and 2022, companies reporting on climate-related risks or opportunities, board oversight, and climate-related targets rose by 26%, 25% and 24% respectively.

Asset managers and asset owners are significantly affected: over 80% of the largest asset managers and 50% of the largest asset owners reported in alignment with at least one recommended disclosure. Nearly 70% of the top 50 asset managers and 36% of the top 50 asset owners reported in line with at least five. Investors identified insufficient information from investee companies as the primary reporting challenge, with asset managers citing public-company information (62%) and asset owners private investments (84%).

Indian companies and investors should note that TCFD oversight has transferred to the ISSB following its publication of global sustainability and climate standards, which underpin India's disclosure direction. Firms should focus on areas the report flags for sustained attention: interoperability of ISSB Standards with jurisdictional frameworks, implementation guidance on physical risk assessment, scenario analysis, and Scope 3 GHG measurement. Indian reporters can monitor how ISSB continues this work to avoid reporting through multiple venues.

Key figure — Disclosure rate: 58% of companies aligned with at least five of eleven recommendations in fiscal 2022 (up from 18% in 2020)