TCFD Support Grows
The Task Force for Climate-related Financial Disclosures (TCFD) recently announced a milestone of reaching more than 1,000 supporters globally – indicating a desire within a wide range of market participants to strengthen climate reporting.
Increasingly, firms are accepting that climate risk is financial risk – and investor demand for high quality, comparable, accurate data on Environmental, Social and Governance (ESG) factors is growing.
Widespread implementation of the TCFD recommendations is a step towards providing that information. We welcome recent steps mooted by the EU towards extending XBRL to ESG reporting.
There is a need to ensure that initial steps being taken right around the world, such as TCFD based reporting in Inline XBRL, is co-ordinated in such a fashion as to ensure that these digital reports are comparable and highly usable. For example, there needs to be a single TCFD taxonomy that can be used around the world (that should include local language labels to help international reporting and comparisons).
Read more on TCFD adoption here.