Final TCFD Climate Reporting Framework Released, Investors Urge Widespread Adoption

30 Jun Final TCFD Climate Reporting Framework Released, Investors Urge Widespread Adoption

On June 29, industry-led Task Force on Climate-related Financial Disclosures (TCFD), released three final key documents that aim to serve as building blocks to describe and support the implementation of the Task Force’s recommendations. The Task Force, chaired by Michael R. Bloomberg, was established by the Financial Stability Board in December 2015 to develop a set of voluntary, consistent disclosure recommendations for use by companies in providing information to investors, lenders and insurance underwriters about their climate-related financial risks.

Financial institutions responsible for assets of around €22trn, including major pension investors, have thrown their weight behind the final recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD), according to IPE. As reported by Reuters, there are concerns in the financial community that assets are being mispriced because the full extent of climate risk is not being factored in, threatening market stability. As a result, demand is growing from investors, shareholders, lenders, underwriters and the public for more meaningful and transparent climate-related financial information.

Full reports available here.