Financial markets reporting - Financial Stability Board (FSB) - Task Force on Climate-related Financial Disclosures (TCFD).
The TCFD’s Recommendations and Detailed Guidelines (the ‘Recommendations’), published in June 2017, encourage companies to include climate-related information within their financial disclosures.
The Recommendations are principally aimed at ensuring investors, lenders and insurance underwriters have sufficient information about how climate change could affect their actual and proposed investments.
The TCFD suggests that all companies with public equity or debt should adopt them, both in financial and non-financial sectors.
There are four key areas for disclosure:
- 1. Governance: The role of management in assessing climate change risks and opportunities, and oversight by the board.
- 2. Strategy: Where material, a description of impacts of actual and potential risks/opportunities from climate change upon the business’s strategy and financial planning over different time horizons and the resilience of the organisation’s strategy based on different climate scenarios.
- 3. Risk Management: Description of the organisation’s process for identifying and managing climate-related risks and how these relate to the organisation’s overall risk management framework.
- 4. Metrics and Targets: Where material, disclosure of the organisation’s greenhouse gas emissions, and related risks; and a description of the metrics used to identify risks.
- Climate Disclosure Standards Board
- Financial Stability Board
- Standard Setting Body
- Task Force on Climate-related Financial Disclosures
- World Economic Forum