In brief: TCFD to merge with ISSB

The Taskforce on Climate-Related Financial Disclosures – adopted into law in the UK and used voluntarily by many of the world’s biggest asset managers – will move into the administration of the International Sustainability Standards Board. This merger marks further cohesion among the plethora of sustainability reporting standards and frameworks available for asset managers.

The merger comes soon after the ISSB’s own sustainability and climate-related disclosures (known as “S1” and “S2” respectively), were released. S1 and S2 are based on TCFD reports. In practice, the TCFD/ISSB merger means the International Financial Reporting Standards Foundation, which hosts the ISSB and commissioned its disclosures, will monitor companies’ TCFD results. TCFD-aligned disclosure requirements were introduced in the UK for large companies and asset managers in 2021; firms such as Apollo and Ares plan to voluntarily release TCFD-aligned reports this year.

• The ISSB will host webinars on 12 and 18 July to explain the S1 and S2 requirements. Register to view the webinars here.

In related news, Singapore’s regulators have proposed that climate-related disclosures (in line with standards set by the ISSB) be mandatory for large companies (listed and private), reports The Straits Times. A public consultation has been opened.