Paper Title
COMMITMENT TO CLIMATE TRANSPARENCY AND GOVERNANCE: EXAMINING THE FINANCIAL IMPLICATIONS OF TCFD ADOPTION

Abstract
This study investigates the impact of the Task Force on Climate-Related Financial Disclosures (TCFD) on bank performance, focusing specifically on banks that have committed to the TCFD framework. By analysing a sample of these banks, the research aims to understand how adherence to TCFD recommendations influences financial outcomes in the banking sector. The findings reveal that while the TCFD framework is designed to enhance transparency and inform stakeholders about climate-related financial risks and opportunities, its direct impact on bank performance is statistically insignificant, accounting for only a minimal variation in performance metrics. This suggests that, despite the commitment of these banks to TCFD guidelines, a clear correlation to improved financial performance has not been established. The study highlights the complexities faced by banks in implementing TCFD recommendations, including challenges in quantifying climate-related risks, the necessity for standardized reporting, and potential resistance from stakeholders concerned about reputational risks. Furthermore, the research underscores the importance of further investigation into the long-term effects of TCFD disclosures on bank performance, as the current findings indicate that various external factors may influence this relationship. Overall, this research contributes to the understanding of the TCFD's role in promoting sustainable finance among banks committed to climate-related disclosures while emphasizing the need for ongoing adaptation and exploration in the field of climate-related financial reporting. Keywords - Task Force on Climate-Related Financial Disclosures (TCFD), Performance, Disclosure