Climate-related financial disclosures have become a regulatory requirement for thousands of organisations worldwide. TCFD reporting software helps companies structure their disclosures around the four TCFD pillars, manage climate risk data systematically, and prepare for the transition to ISSB standards. Without dedicated software, climate risk reporting remains fragmented, inconsistent, and difficult to audit.
The Four TCFD Pillars
The Task Force on Climate-related Financial Disclosures established four core pillars that form the foundation of climate risk reporting. Effective TCFD reporting software provides structured templates and guidance for each pillar.
Governance
Disclose how your board and management oversee climate-related risks and opportunities. TCFD reporting software helps you document governance structures, board competencies, committee responsibilities, and escalation processes in a format that meets investor and regulatory expectations.
Strategy
Describe the climate-related risks and opportunities your organisation has identified over the short, medium, and long term, and their impact on business strategy and financial planning. Dedicated TCFD software supports scenario analysis across multiple climate pathways, helping you articulate how your strategy is resilient under different temperature outcomes.
Risk Management
Explain your processes for identifying, assessing, and managing climate-related risks. TCFD reporting software integrates with your enterprise risk management framework, ensuring climate risks are assessed using consistent methodologies and documented alongside other business risks.
Metrics and Targets
Report the metrics and targets used to assess and manage relevant climate-related risks and opportunities. This includes greenhouse gas emissions across Scope 1, 2, and 3, climate-related targets, and performance against those targets over time. TCFD compliance requires consistent, comparable, and reliable metrics that dedicated software can deliver.
TCFD to ISSB Transition
In 2023, the IFRS Foundation assumed responsibility for monitoring TCFD progress, and the ISSB standards (IFRS S1 and S2) now incorporate and build upon TCFD recommendations. Organisations that have invested in TCFD compliance are well-positioned for ISSB alignment, but the transition introduces new requirements around value chain emissions, industry-specific metrics, and connectivity with financial statements.
TCFD reporting software that also supports ISSB standards ensures a smooth transition. Rather than rebuilding your climate risk reporting from scratch, you can extend your existing TCFD disclosures to meet the additional ISSB requirements within the same platform. This is particularly important for UK companies, where regulators are expected to adopt ISSB-aligned standards in the coming years.
How Horizon ESG Supports TCFD Reporting
Horizon ESG provides comprehensive TCFD reporting software that covers every aspect of climate-related financial disclosure. Our platform makes TCFD compliance straightforward and auditable.
- Pillar-by-pillar templates: structured disclosure templates for Governance, Strategy, Risk Management, and Metrics and Targets, pre-populated with guidance and examples.
- Scenario analysis tools: model your organisation’s resilience under 1.5, 2, and 4-degree warming scenarios with built-in climate data and financial impact modelling.
- Integrated carbon accounting: Scope 1, 2, and 3 emissions tracking feeds directly into TCFD Metrics and Targets disclosures, ensuring consistency across all climate reporting.
- ISSB readiness: as the transition from TCFD to ISSB progresses, Horizon ESG maps your existing disclosures to IFRS S1 and S2 requirements, highlighting gaps and new obligations.
- Risk register integration: connect climate risks to your enterprise risk framework within the platform, providing auditors and board members with a unified view.
- Audit-ready output: complete audit trails, version control, and approval workflows ensure your TCFD disclosures are ready for limited or reasonable assurance.
Learn more about how Horizon ESG supports your broader sustainability reporting needs on our ESG reporting and CSRD compliance pages.
Frequently Asked Questions
Is TCFD reporting still required?
Yes. While the TCFD itself has been disbanded and its monitoring transferred to ISSB, TCFD-aligned disclosure requirements remain in force in many jurisdictions including the UK. The FCA continues to require TCFD-aligned reporting for listed companies and large financial institutions. TCFD reporting software ensures ongoing compliance as requirements evolve toward ISSB alignment.
What is the difference between TCFD and ISSB?
TCFD provided recommendations for climate-related financial disclosures across four pillars. ISSB standards (IFRS S1 and S2) incorporate TCFD recommendations and expand them with additional requirements including industry-specific metrics, value chain considerations, and connectivity with financial statements. TCFD reporting software that supports both standards makes the transition seamless.
Do I need separate software for TCFD and carbon accounting?
No. The best TCFD reporting software integrates carbon accounting directly into the platform. Horizon ESG combines climate risk reporting with Scope 1, 2, and 3 emissions calculations, ensuring your Metrics and Targets disclosures are always consistent with your carbon inventory.
How does TCFD reporting software help with scenario analysis?
TCFD reporting software provides structured scenario analysis tools that guide your team through selecting climate scenarios, identifying physical and transition risks, modelling financial impacts, and documenting the process. This turns a complex analytical exercise into a manageable, repeatable workflow.
Strengthen Your Climate Disclosures
Horizon ESG makes TCFD compliance and the transition to ISSB standards straightforward. Our TCFD reporting software gives your team the structure, data, and audit trails needed for confident climate-related financial disclosures.