This report by the Task Force on Climate-related Financial Disclosures (TCFD) provides final recommendations for consistent, comparable, reliable, clear and efficient climate-related financial disclosures by companies. The FSB has welcomed the publication of the recommendations.
The private-sector Task Force, chaired by Michael R. Bloomberg, was established by the FSB in December 2015 to develop a set of voluntary disclosure recommendations for use by companies in providing information to investors, lenders, and insurance underwriters about their climate-related financial risks. The 32 members of the Task Force, drawn from a wide range of business sectors from around the globe, finalised the recommendations after extensive public engagement and consultation, including public consultation on a draft of the recommendations in December 2016.
The TCFD developed recommendations on climate-related financial disclosures that are applicable to organisations across sectors and jurisdictions. The recommendations are structured around four thematic areas:
- Governance: The organisation’s governance around climate-related risks and opportunities.
- Strategy: The actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning.
- Risk Management: The processes used by the organisation to identify, assess, and manage climate-related risks.
- Metrics and Targets: The metrics and targets used to assess and manage relevant climate-related risks and opportunities.
At the launch of the final recommendations more than 100 firms, with market capitalisations of over $3.3 trillion and financial institutions responsible for assets of more than $24 trillion, provided statements of support, agreeing to actively support successful implementation of the recommendations while encouraging other business leaders to do the same.
The TCFD will continue its work until at least September 2018 with a focus on promoting and monitoring adoption of the TCFD’s recommendations by companies and evaluating the extent to which the recommended disclosures are meeting the interests of users.