Reporting on climate risk gains traction but still lacks financial impact analysis
27 Sep, 2018
The Task Force on Climate-related Financial Disclosures (TCFD) set up by the Financial Stability Board (FSB) to develop voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to lenders, insurers, investors and other stakeholders has published a status report providing an overview of the extent to which companies in their 2017 reports included information aligned with the core TCFD recommendations published in June 2017.
The TCFD surveyed disclosures of over 1,700 firms from diverse sectors with broad geographical representation.
Even though the TCFD found that the majority of the firms surveyed disclose information aligned with at least one of the TCFD recommended disclosures, . many companies just describe climate-related risks and opportunities but don't disclose the financial impact of climate change on the company.
The report also notes that disclosures vary widely across industries and that more non-financial companies than financial companies reported their climate-related metrics and targets. In addition, disclosures are often made in sustainability reports or spread across financial filings, annual and sustainability reports.
Please click for the press release and the status report on the FSB website.
