FSB published the recommendations for effective disclosure of climate-related financial risks. These recommendations, which are applicable to organizations across sectors and jurisdictions, have been developed by the industry-led Task Force on Climate-Related Financial Disclosures (TCFD).
The recommendations by TCFD are structured around the following four areas:
An organization’s governance around climate-related risks and opportunities
Actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning
Processes used by the organization to identify, assess, and manage climate-related risks
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 capitalizations of over USD 3.3 trillion and financial firms responsible for assets of more than USD 24 trillion provided statements of support, agreeing to actively support successful implementation of the recommendations while encouraging other business leaders to do the same. FSB established this private-sector Task Force (TCFD), chaired by Michael R. Bloomberg, 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. 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.
Keywords: FSB, International, Banking, Insurance, Climate Related Risks, TCFD, Disclosures
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