Efforts to get companies to disclose climate-related financial risks face “challenges” and companies often fail to make detailed disclosures, according to a global task force report by the Task Force on Climate-related Financial Disclosures.
“Disclosure of climate-related financial information has increased since 2016, but is still insufficient for investors,” the Task Force on Climate-related Financial Disclosures (TCFD) said in its 2019 status report. “Given the speed at which changes are needed to limit the rise in the global average temperature — across a wide range of sectors — more companies need to consider the potential impact of climate change and disclose material findings.”
The task force also called for “more clarity … on the potential financial impact of climate-related issues on companies.” Most companies also fail to disclose information on “the resilience of their strategies” which is “an important gap in disclosure.”
Last year, 78 percent of companies disclosed information aligned with at least one of the TCFD’s 11 recommendations, up from 70 percent in 2016; 76 percent of users said they use climate-related financial disclosures when making decisions.
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TCFD report
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