TCFD recommended disclosure criteria serve as guidelines for assessing whether a company's disclosures align with each of the 11 items recommended for disclosure by the TCFD recommendations (hereafter, TCFD recommended disclosures). Each criterion was developed by extracting the key elements of each TCFD recommended disclosure based on the Guidance on Climate-related Financial Disclosures 3.0 (TCFD Guidance 3.0).
This document enumerates and names each TCFD recommended disclosure as shown below and defines the associated criteria.
| ID | Core Element | TCFD recommended disclosure | Criteria |
|---|---|---|---|
| 01 | Governance | Board oversight | 01-01: Process of reporting to the board on climate-related issues 01-02: Frequency of reporting to the board on climate-related issues 01-03: Consideration of climate-related issues by the board 01-04: How the board monitors and oversees progress |
| 02 | Governance | Management's role | 02-01: Organizational structure 02-02: Process by which management is informed about climate-related issues 02-03: How management monitors climate-related issues |
| 03 | Strategy | Risks and opportunities | 03-01: Time horizon(s) for the consideration of climate-related risks and opportunities 03-02: Climate-related issues in each specified time horizon 03-03: Process for determining risks and opportunities with a financial impact |
| 04 | Strategy | Impact on businesses, strategy, and financial planning | 04-01: Impact on businesses or strategy 04-02: Impact on financial planning |
| 05 | Strategy | Description of resilience of strategy | 05-01: 2 °C or lower scenario 05-02: Climate-related scenarios and associated time horizon(s) 05-03: Impact of climate-related scenarios on the strategy 05-04: Strategic action taken in relation to climate-related scenarios 05-05: Impact of climate-related scenarios on financial planning |
| 06 | Risk Management | Processes for identifying and assessing risks | 06-01: Process for identifying and assessing risks |
| 07 | Risk Management | Processes for managing risks | 07-01: Process for managing risks |
| 08 | Risk Management | Integration into overall risk management | 08-01: Integration of the identification and assessment process into the overall risk management 08-02: Integration of the management process into overall risk management |
| 09 | Metrics & Targets | Metrics used to assess risks and opportunities | 09-01: Evaluation metrics 09-02: Historical performance based on evaluation metrics |
| 10 | Metrics & Targets | Greenhouse gas emissions of Scope 1 and 2 | 10-01: Greenhouse gas emissions 10-02: Historical greenhouse gas emissions |
| 11 | Metrics & Targets | Targets used to manage risks and opportunities and performance against targets | 11-01: Climate-related targets 11-02: Time horizon(s) for climate-related targets |
If you are using this work, please cite it as:
@article{jpxwp-tcfdcriteria-en-2024,
title = {Automated Determination of TCFD Recommended Disclosures through Zero-shot Text Classification Using Large Language Models},
author = {Doi, Nobushige and Oda, Yusuke and Nakakubo, Naho and Sugimoto, Jun},
journal = {JPX Working Paper},
volume = {43},
pages = {1--28}
year = {2024},
month = {3},
language = {en}
}Contents of this repository was created by a joint research between Japan Exchange Group, Inc. and Cierpa & Co., Inc.
JPX Working Papers | Japan Exchange Group https://www.jpx.co.jp/english/corporate/research-study/working-paper/index.html