The FSB welcomed the publication of a report by the industry-led Task Force on Climate-related Financial Disclosures (TCFD). The Status Report provides an overview of the extent to which companies in their 2017 reports included information aligned with the core TCFD recommendations.
The report also provides information to support preparers of disclosures in implementing the TCFD recommendations.
Even though companies implementing the recommendations in their 2017 reports have had a limited amount of time to take on board the TCFD recommendations, it is encouraging that the TCFD found that a majority of companies assessed were already disclosing aligned with one or more of the TCFD recommendations. Going forward, disclosures aligned with the TCFD recommendations will supply decision-useful information for investors, creditors and other users.
The TCFD surveyed disclosures of over 1,700 firms from diverse sectors with broad geographical representation. It found that:
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The majority of the firms surveyed disclose information aligned with at least one of the TCFD recommended disclosures.
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While many companies describe climate-related risks and opportunities, few disclose the financial impact of climate change on the company.
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A minority of companies disclose forward-looking climate targets or the resilience of their strategies under different climate-related scenarios, including a 2°C or lower scenario, which is a key area of focus for the Task Force.
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Disclosures vary widely across industries. For example, more non-financial companies reported their climate-related metrics and targets; than did financial companies. However, financial companies were more likely to disclose how they had embedded climate risk into overall risk management.
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Disclosures are often made in sustainability reports or spread across financial filings, annual and sustainability reports.
Full press release
Status report
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