Task Force on Climate-related Financial Disclosures (TCFD) – the facts
In September 2015, Bank of England governor Mark Carney predicted that “once climate change becomes a defining issue for financial stability, it may already be too late”, sending a strong signal to the financial sector that urgent action was needed. The G20 finance ministers and Central Bank governors responded by asking the Financial Stability Board (FSB) to review how the financial sector can best take account of climate-related issues.
The formation of the Task Force on Climate-related Financial Disclosures (TCFD) is the result: the first international initiative to examine climate change in a financial stability context.
In July 2017, the Task Force released its Recommendations report. This report sets out a framework for corporations to identify, quantity and report climate-related financial risks in a consistent manner. It offers guidance to companies on disclosing and publishing their progress through their annual reports.
In 2018, CDP, the global investor-led climate reporting initiative, will have integrated the relevant TCFD criteria into its questionnaires, further solidifying the adoption of and reporting of this information by companies to investors.
Anthesis believe that by investing in and implementing the right governance, risk management and strategic planning processes, companies can become more resilient to the risks associated with climate change. And through effective reporting, they will be in a strong position to make better decisions for their future business.
Anthesis have extensive experience in developing robust climate change and environmental information for mainstream corporate reports. We have worked with a wide range of companies, including many from the financial services sector. We are recognized for our work on multi metrics across environmental and social indicators. We use clear language and infographics to make difficult data easy to understand and quickly show what really matters. We help you define a powerful, differentiated narrative about your performance and ambitions that inspires and motivates staff, customers and other stakeholders to understand, communicate and adapt.
Time to act
Understanding climate-related risks and building them into your financial reporting is undoubtedly challenging. But the methods and tools that enable you to do so are maturing rapidly, as are the expectations of investors and regulators for better information. Companies that fail to grasp this agenda now face a range of risks and uncertainties. We believe now is the time to act, and we look forward to supporting you.