FSB published a status report that presents the current climate-related disclosure practices, based on the core elements of the recommendations by Task Force on Climate-related Financial Disclosures (TCFD). The report provides an overview of the extent to which companies in their 2017 reports included information aligned with the core TCFD recommendations that were published in June 2017. The report also provides information to support preparers of disclosures in implementing the TCFD recommendations.
The report reviews FSB efforts to promote adoption of the TCFD disclosure framework and reviews the disclosures that hundreds of companies have already made, demonstrating that it is both practical and useful for companies to do so. This report also provides perspectives from users that are expected to prove helpful in guiding companies that are just beginning the process of disclosing climate risks. TCFD found that a majority of companies assessed were already disclosing aligned with one or more of 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. The following are the key findings from the TCFD survey of disclosures of over 1,700 firms from diverse sectors with broad geographical representation:
The majority of the firms surveyed disclose information aligned with at least one of the TCFD recommended disclosures.
While many companies describe climate-related risks and opportunities, few disclose the financial impact of climate change on the company.
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 TCFD.
Disclosures vary widely across industries. For example, more non-financial companies reported their climate-related metrics and targets, compared to the financial companies. However, financial companies were more likely to disclose how they had embedded climate risk into overall risk management.
Disclosures are often made in sustainability reports or spread across financial filings, annual and sustainability reports.
TCFD announced that the number of firms supporting its recommendations has grown to over 500, compared to 100 firms when the recommendations were launched in June 2017. The supporters include the world’s largest banks, asset managers, and pension funds that are responsible for assets of nearly USD 100 trillion. The status report is based on companies’ 2017 financial filings and demonstrates the practical, decision-useful nature of the recommendations. FSB has asked the TCFD to publish the next status report in June 2019, which will allow for analysis of disclosures made in 2018 financial reports.
Keywords: International, Banking, Insurance, Securities, Climate Related Risks, Disclosures, TCFD, FSB
FSB published the annual report that examines to-date progress toward implementation of climate-related disclosure recommendations of the industry-led Task Force on Climate-related Financial Disclosures (TCFD).
APRA is consulting on the reporting standard for credit risk management (ARS 220.0).
PRA launched a consultation (CP18/20) setting out proposals for the "Contractual Recognition of Bail-in" and "Stay in Resolution" Rules.
FASB is consulting on the XBRL US Data Quality Committee (DQC) Rules Taxonomy (DQCRT) along with two technical guides.
EC published draft of a delegated regulation amending liquidity coverage rules for covered bond issuers.
ESMA published an update to its March 2019 statement on the endorsement of credit ratings from UK.
PRA published Version 2 of the questions and answers (Q&A) on the Branch Return form.
FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).
ISDA launched the IBOR Fallbacks Supplement and the IBOR Fallbacks Protocol, with both becoming effective on January 25, 2021.
BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.