Task Force on Climate-Related Financial Disclosures
Climate change not only poses serious threats to communities, but also deeply impacts businesses, creating financial risks that must be integrated into business models as we transition to a clean energy economy. With this in mind, the Financial Stability Board (FSB) formed the Task Force on Climate-related Financial Disclosures (TCFD) in December 2015, comprising of 30 members from across the G20, covering a range of economic sectors and financial markets. Spearheaded by former FSB Chairman and Bank of England Governor Mark Carney and chaired by Mike Bloomberg, in 2017 the Task Force issued recommendations to help companies disclose information designed to help lenders, insurers, and investors better assess climate-related risks and opportunities, driving capital towards more sustainable investment.
The Task Force’s recommendations called for companies to disclose:
- Governance around climate-related risks and opportunities
- The impact of climate-related risks and opportunities on business strategy
- The assessment and management of climate-related risk
- The metrics and targets used to assess and manage climate-related risks
The TCFD released its recommendations in June 2017. As of July 2023, more than 4,700 organizations, representing over $32 trillion in market capitalization, have endorsed them.
These recommendations have been widely supported by industry leaders. As of October 2023, more than 4,700 companies and organizations in more than 100 countries have endorsed or adopted TCFD reporting guidelines, along with more than 1,800 financial firms representing $223 trillion in AUM. Governments, regulators, and other authorities—including the U.S. Securities and Exchange Commission, the U.K. Parliament, the European Commission, and the International Sustainability Standards Board—have continued to use the TCFD recommendations in developing climate-related financial disclosure requirements and standards. The growing momentum and areas where further work is needed can be seen in greater detail in TCFD’s 2023 status report.
Top photo: Mike Bloomberg speaks alongside Mary Schapiro and Bank of England Governor Mark Carney during the inaugural One Planet Summit in Paris, France in December 2017.