FSB task force on climate-related financial disclosures publishes first report

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01 Apr 2016

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 its first report.

In a first phase, the TCFD has conducted a high-level review of the existing landscape of climate-related disclosures — including current voluntary and mandatory climate-related disclosure regimes — to identify commonalities, gaps, and areas for improvement and highlights these in its first report. The report also defines the scope and objectives of its work for the second phase where the TCFD will target climate-related financial disclosures pertaining to near-, medium- , and long-term physical and nonphysical impacts faced by both nonfinancial companies and the financial sector. Finally, the task force has identified seven fundamental principles that are critical for an effective regime for climate-related financial disclosure and that will underpin the TCFD's recommendations to be developed in phase two for enhancing climate-related disclosures and providing an enduring framework:

  • present relevant information;
  • be specific and complete;
  • be clear, balanced, and understandable;
  • be consistent over time;
  • be comparable among companies within a sector, industry, or portfolio;
  • be reliable, verifiable, and objective; and
  • provide on a timely basis.

Please click to access an executive summary and a full version of the report on the TCFD website. The website has been newly set up to provide the public with access to TCFD materials and offer greater transparency on the TCFD's work. It also features a public consultation on the TCDF's work in the second phase.

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