Which of the following is not a core element of the Task Force on Climate-related Financial Disclosures (TCFD)?

The Task Force on Climate-related Financial Disclosures (TCFD) offers a framework aimed at enhancing transparency in how organizations assess and manage climate-related risks and opportunities. The core elements defined by the TCFD include governance, risk management, strategy, and metrics and targets.

Governance refers to the organization’s governance structure and processes related to climate-related risks and opportunities, while risk management encompasses how an organization identifies, assesses, and manages those risks. Strategy involves how climate-related issues may impact the organization’s business model and financial planning.

The term "impact" does not align with the established core elements of the TCFD framework. While organizations may consider the impact of climate risks, it is not a specified component of the TCFD’s reporting structure. Instead, the TCFD emphasizes the need to focus on governance, risk management, and strategy as fundamental areas to convey how climate-related factors are integrated into the decision-making process.