Climate change is a systemic business risk, says global taskforce
Companies should report climate risks and opportunities in their annual financial report to make information useful to investors, a global taskforce of finance experts has concluded.
The Taskforce on Climate-related Financial Disclosures (TCFD) was asked by the G20 group of the world’s major economies to develop recommendations to improve the clarity and consistency of corporate climate reporting to make the information more useful to lenders, insurers and investors.
The former mayor of New York City, Michael Bloomberg, chairs the taskforce and other members include representatives from banks, insurance companies, asset management firms, pension funds, large non-financial companies and consultancies.
The taskforce put forward four recommendations it says would improve corporate transparency and which are applicable to organisations across sectors and jurisdictions. These cover governance, strategy, risk management, and metrics and targets. It has also produced guidance on producing climate disclosures consistent with its recommendations.
UK quoted firms already report climate risks and ...