Which framework specifically guides climate-related financial risk disclosures?

• A. GRI
• B. SASB
• C. TCFD
• D. ISO 14064

Answer: (C)

Focusing on how to present the financial implications of climate risks to investors, the best fit is the Task Force on Climate-related Financial Disclosures. This framework was created specifically to guide disclosures of climate-related risks and opportunities in financial filings, making it tailored to finance-focused reporting. It centers on four key areas—governance, strategy, risk management, and metrics and targets—and emphasizes the use of scenario analysis to show potential financial impacts under different climate futures. That setup helps companies translate climate risks into tangible financial terms for stakeholders.

Other frameworks cover related sustainability topics but aren’t designed exclusively for climate-related financial disclosures. GRI provides broad sustainability reporting guidance, useful for overall impact but not focused on financial risk implications. SASB offers industry-specific sustainability standards, including climate topics, but its scope isn’t devoted solely to climate-related financial risk disclosures. ISO 14064 concentrates on greenhouse gas accounting and verification, fitting inventory and emissions reporting rather than the broader risk-disclosure framework for finance audiences.