Particularly for asset managers and institutional investors, EU rules will increasingly require entities to assess climate-related risks to assets and businesses, as both financial and non-financial factors.

The TCFD recommendations are clearly consistent with these development requirements, and could be expected to materially assist both governments and companies in adapting to them.

Practical actions for better climate disclosure in the EU

The European Union

  • The EU should publicly support the TCFD recommendations, as should The European Securities and Markets Authority and the European Insurance and Occupational Pensions Authority.
  • The EU should encourage high quality disclosures based on the TCFD framework and use the TCFD recommendations to assist in preparing guidelines for existing EU legislation such as the Non-Financial Reporting Directive. The EU should also consider the TCFD in other relevant guidance that it evolves for the Capital Markets Union, the Shareholder Rights Directive and sustainable finance.


  • Companies should adopt the TCFD’s recommendations as a useful voluntary framework for consistent climate-related disclosures to investors. Sharing of company good practice will assist in overcoming implementation hurdles, with convergence in reporting frameworks needed in the longer term.


  • Investors should engage with companies to encourage adoption of the TCFD’s recommendations. Investors should also evolve their disclosure to beneficiaries and clients, informed by the TCFD’s guidance for asset owners and managers.

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    TCFD Recommendations: Country reviews - European Union

    June 2017

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TCFD Recommendations: Country reviews