Task Force Publishes Recommendations on Climate-Related Financial Disclosures

The Financial Stability Board (FSB), chaired by Bank of England Governor Mark Carney, welcomed the publication of the recommendations for effective disclosure of climate-related financial risks published today by the industry-led Task Force on Climate-related Financial Disclosures (TCFD).

The recommendations apply to financial-sector organizations, including banks, insurance companies, asset managers, and asset owners.

The TCFD made recommendations in four key areas:

  1. Governance: Disclose the organization's governance around climate-related risks and opportunities.

  2. Strategy: Disclose the actual and potential impacts of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning where such information is material.

  3. Risk Management: Disclose how the organization identifies, assesses, and manages climate-related risks.

  4. Metrics and Targets: Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.

The recommendations are intended to be:

  • adoptable by all organizations,

  • included in financial filings,

  • designed to solicit decision-useful, forward-looking information on financial impacts, and

  • focussed on risks and opportunities related to transition to lower-carbon economy.

For further information, please contact Lisa DeMarco at lisa@demarcoallan.com.

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