ICAEW SE · Chapter 3 · Question 8 of 8
The recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) were originally voluntary. Which statement best illustrates the trend from less prescriptive guidance to more codified regulation?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The TCFD recommendations were built into the ISSB's IFRS S2 standard, which jurisdictions can then make mandatory for companies through law or listing rules
Explanation
The TCFD framework, structured around governance, strategy, risk management and metrics and targets, began as voluntary guidance. Its structure was incorporated into IFRS S2 Climate-related Disclosures, and jurisdictions can adopt the ISSB standards as mandatory requirements. This shows the move from voluntary guidance to codified, enforceable standards.
More Regulation on sustainability MCQs
- Q2What is the central long-term temperature goal of the Paris Agreement adopted in 2015?
- Q3What is the main role of the Intergovernmental Panel on Climate Change (IPCC)?
- Q4The UN Global Compact asks businesses to commit to ten principles. These principles cover which four areas?
- Q5Under a 'cap-and-trade' emissions trading scheme, how is the cost of emitting greenhouse gases created?
- Q6CDP (formerly the Carbon Disclosure Project) is a non-governmental organisation. How does it mainly drive sustainability change?