TCFD Reporting for Indian Companies: A Practical Implementation Guide

The Task Force on Climate-related Financial Disclosures (TCFD) has become the dominant global framework for corporate climate risk disclosure. Originally voluntary, TCFD recommendations are now embedded in India's BRSR framework, mandated by regulators in the UK, EU, and Singapore, and expected by institutional investors globally. For Indian companies — particularly listed companies and those with international investors or buyers — TCFD disclosure is fast becoming a minimum expectation rather than a differentiator.

The Four TCFD Pillars

TCFD organises its recommendations around four core pillars. Governance: How does your board and management oversee climate-related risks and opportunities? This requires documenting board-level climate risk oversight — which committee is responsible, how frequently it reviews climate matters, and what expertise exists at board level. Strategy: What are the actual climate risks and opportunities your business faces, and how do they affect your strategy, business model, and financial planning? This is the most substantive pillar and requires scenario analysis. Risk Management: How does your company identify, assess, and manage climate risks, and how is this integrated into your overall risk management process? Metrics and Targets: What are your GHG emissions (Scope 1, 2, and material 3), and what targets have you set?

Scenario Analysis: The Most Challenging TCFD Requirement

TCFD requires companies to assess their resilience under different climate scenarios — typically a scenario aligned with 1.5–2°C warming (high transition risk) and a scenario with limited policy action but high physical risk (3°C+). For Indian industrial companies, a 3°C scenario means assessing the physical risks to facilities from increased heat stress, monsoon variability, water scarcity, and extreme weather events across their operational geography. The 1.5°C scenario means assessing transition risks: the cost of CCTS compliance, CBAM exposure, carbon price trajectories, and the pace of regulatory change. The output should inform your actual strategic planning, not just your disclosure document.

Getting Started with TCFD in India

Most Indian companies starting TCFD implementation find it most practical to begin with the Governance and Metrics pillars, which are more straightforward to address: document existing board oversight of climate matters, and establish your GHG emissions baseline. Strategy and Risk Management require more substantial effort and benefit from external facilitation for the scenario analysis work. Csquare supports Indian companies through TCFD implementation — from initial gap assessment to scenario analysis to full TCFD-aligned disclosure.