TCFD / IFRS S2 Climate Risk Reporting Advisory
TCFD's four-pillar climate disclosure framework, taken into IFRS S2 and Turkey's TSRS 1/TSRS 2 requirements. Free Climate Risk Gap Analysis.
Carry TCFD's four-pillar climate disclosure infrastructure into IFRS S2 and Turkey's TSRS 1/TSRS 2 requirements. We combine the climate risk and opportunity inventory, scenario analysis, financial impact assessment, metrics and targets, data controls and assurance audit preparation into a single work plan.
What Does TCFD Mean in 2026?
The Financial Stability Board announced in July 2023 that TCFD's work was complete, and the task force disbanded in October 2023. The TCFD recommendations have not disappeared: companies can continue to use them, and TCFD-aligned provisions may remain relevant in some jurisdictions. However, as of 2026, the current international reference point for investor-focused climate disclosures is IFRS S1 and IFRS S2. Important distinction: a company applying IFRS S1 and IFRS S2 also meets the TCFD recommendations; however, applying only the TCFD recommendations does not mean full compliance with IFRS S1/S2 or TSRS has been achieved.
TCFD's Four Core Pillars
Governance — the board's and senior management's oversight, decision-making and responsibility structure regarding climate-related risks and opportunities. Strategy — the current and expected impacts of climate risks and opportunities on the business model, strategy, financial planning and resilience. Risk Management — the identification, assessment, prioritisation, monitoring and integration of climate risks and opportunities into enterprise risk management. Metrics and Targets — the metrics, greenhouse gas emissions and targets used to monitor climate performance and material risks/opportunities.
Transition from TCFD to IFRS S2: What Changed?
TCFD is a strong starting point; it is not the final destination. IFRS S2 fully incorporates TCFD's four core recommendations and its 11 recommended disclosures. In addition, it introduces further provisions such as sector-specific metrics, the Scope 3 measurement approach, the use of carbon credits in targets, additional target-related information, and certain financial-sector disclosures. Table — The position of TCFD, IFRS S2 and TSRS as of 2026: TCFD — the task force disbanded in October 2023; the recommendations remain usable — practical meaning: a strong starting point and gap-analysis reference for transitioning to IFRS S2. IFRS S1 / IFRS S2 — the ISSB's global baseline; mandatory status depends on country or regulatory adoption — practical meaning: the current international standard for investor-focused sustainability and climate disclosures. TSRS 1 / TSRS 2 — national standards issued in Turkey by the POA — practical meaning: mandatory scope is determined via the POA's entity-type and scope provisions. December 2025 IFRS S2 update: the ISSB published targeted amendments to greenhouse gas emissions disclosures. The amendments will apply to reporting periods beginning on or after 1 January 2027; early application is permitted. When designing the data model for future periods in 2026 preparation, the effect of these amendments should also be assessed.
TSRS Scope in Turkey: 2026 Thresholds
Having started working with TCFD or IFRS S2 does not by itself determine mandatory TSRS scope in Turkey. The scope test is carried out first via entity type, then via the threshold test where applicable. Table — Current TSRS threshold values published on 16 January 2026: Total assets — TL 1 billion. Annual net sales revenue — TL 2 billion. Number of employees — 500. For entities subject to the thresholds and listed in the Board Decision, it is assessed whether at least two of these three criteria have been exceeded in two consecutive reporting periods. The current thresholds apply to accounting periods beginning on or after 1 January 2025. Banks are subject to a special mandatory scope provision independent of the thresholds, except for the exemption within the SDIF. Scope 3 transition exemption: entities are not required to disclose Scope 3 greenhouse gas emissions in the first two annual reporting periods in which they apply TSRS. This exemption does not mean the data infrastructure for subsequent periods should be postponed. You can review our "TSRS advisory and scope analysis" page to assess your company's scope in detail.
How Should Climate Scenario Analysis Be Structured?
IFRS S2 requires the assessment of climate-related strategic resilience, but it does not mandate a fixed 1.5°C / 2°C / 4°C trio for every company. The approach used should be proportionate to the company's climate risk exposure, sector, geography, strategic planning horizon and available skills/resources. Physical risks — the effects of acute or chronic impacts such as floods, storms, extreme heat, wildfires, drought and water stress on assets, operations and the supply chain. Transition risks — impacts arising from the transition to a low-carbon economy such as carbon pricing, regulation, technology, customer preferences, market transformation and reputation. Scenario selection and assumptions are documented clearly; results are linked to strategy, capital allocation and financial impacts. Scenario analysis is not a forecasting contest but a decision-support tool that tests resilience under uncertainty.
TSRS Assurance Audit and 2026 Application
In Turkey, mandatory assurance audit was introduced for sustainability reports prepared under TSRS by the POA decision dated 5 September 2024, and it was decided that application would begin with limited assurance. As of July 2026, the POA's draft regulatory process and entry-into-force plan for SGDS 5000 — General Requirements for Sustainability Assurance Engagements should be monitored. Until the relevant final implementation provisions enter into force, GDS 3000 and, where relevant for greenhouse gas statements, GDS 3410, are applied within the framework of current POA regulations. In the POA's draft announcement, application of SGDS 5000 has been targeted for periods beginning on or after 15 December 2026; the final POA regulation should be checked separately in the live project plan.
EUROPECARBON Advisory Process
Scope and Gap Analysis — we compare your existing TCFD, CDP, GRI, carbon and risk management infrastructure against IFRS S2 and, where necessary, TSRS provisions. Climate Risk and Opportunity Inventory — we prioritise physical and transition risks in the context of the business model, value chain, locations and financial impacts. Scenario and Resilience Analysis — we structure scenarios, assumptions and financial sensitivities suited to the company's circumstances. Metrics, Targets and Data Controls — we define climate metrics, greenhouse gas data, targets, data owners and audit evidence. IFRS S2 / TSRS Report Draft — we turn the Governance, Strategy, Risk Management and Metrics and Targets areas into a consistent disclosure set. Assurance Audit Preparation — we support the limited assurance process with an evidence file, calculation trails, control points and readiness for auditor questions.
Outputs Delivered at the End of the Process
TCFD → IFRS S2 / TSRS gap analysis; climate risk and opportunity matrix; scenario analysis assumption and result set; current/expected financial impact working table; metrics, target and data ownership matrix; IFRS S2 / TSRS compliant climate disclosure draft; assurance audit evidence checklist; annual update and governance calendar.
Official Sources and Up-to-Date Guides
The TCFD, IFRS S2, TSRS scope and assurance disclosures on this page have been reviewed as of 27 July 2026 based on the following primary sources: IFRS Foundation — ISSB and TCFD: current disclosure that TCFD disbanded in October 2023 and its recommendations were integrated into IFRS S1/S2. IFRS Foundation — Making the transition from TCFD to ISSB: IFRS S2's additional disclosure requirements beyond TCFD. IFRS Foundation — 2025 IFRS S2 GHG Amendments: targeted greenhouse gas disclosure amendments effective from 1 January 2027 onward. POA — Sustainability Legal Regulations: the official list of TSRS scope, the 2026 threshold decision and assurance decisions. 16 January 2026 — Board Decision on Redetermining TSRS Threshold Values: thresholds of TL 1 billion total assets, TL 2 billion net sales and 500 employees; applicable for periods beginning on or after 1 January 2025. POA — Sustainability FAQ: entity-type/scope logic, banks' special scope, the Scope 3 first-two-reporting-period exemption and the four core content areas (note: older monetary threshold examples on the page may not be current; current thresholds are governed by the 16 January 2026 Board Decision). POA — TAS 2026 Set: 2026 assurance standards including GDS 3000 and GDS 3410. POA — SGDS 5000 Draft Regulation Announcement: the official process and targeted entry-into-force structure for incorporating SGDS 5000 into Turkish legislation. CDP — Framework Alignment: CDP's corporate questionnaire alignment with IFRS S2 since 2024 and its relationship with TCFD.
How we work
- 1Scope and gap analysis: comparing existing TCFD, CDP, GRI, carbon and risk management infrastructure against IFRS S2/TSRS
- 2Climate risk and opportunity inventory: prioritising physical and transition risks
- 3Scenario and resilience analysis: structuring scenarios, assumptions and financial sensitivities
- 4Metrics, targets and data controls: defining climate metrics, greenhouse gas data, targets, data owners and audit evidence
- 5IFRS S2 / TSRS report draft: turning the four core areas into a consistent disclosure set
- 6Assurance audit preparation: evidence file, calculation trails, control points and readiness for auditor questions