An international framework for climate-related financial disclosures and a case study of VPBank

Abstract

The Task Force on Climate-Related Financial Disclosures (TCFD) is the world’s first framework on this topic. It was established in 2015 by the Financial Stability Board (FSB) to provide recommendations that help organizations disclose information about climate change for sustainable development. In 2021, the G7 Finance Ministers' group agreed to a deal to implement mandatory climate reporting based on the TCFD recommendations. Since October 2023, the TCFD framework has been handed over to the International Sustainability Standards Board (ISSB) to become the International Financial Reporting Standard on Climate-Related Disclosures (IFRS S2), and TCFD has become a global standard. However, the number of studies on the application of TCFD by businesses in Vietnam is still very limited. The implementation of the TCFD framework in Vietnam and other developing countries, in general, faces many challenges and therefore cannot be applied rigidly according to global standards. Therefore, the objective of this article is to analyze the TCFD framework for climate-related financial disclosures and VPBank's TCFD-aligned sustainability report to provide some recommendations for the Vietnamese market.