Third TCFD Status Report shows momentum
This week the Task Force on Climate-related Financial Disclosures (TCFD) published its annual Status Report, showing significant growth in the number of supporting organisations and amount of investor demand.
In a review of 1,700 companies’ reports the TCFD found that disclosure of climate-related financial information aligned with TCFD recommendations has steadily increased, with the largest increase in company disclosures of climate-related risk.
With an 85% increase in support for the TCFD recommendations, it’s clear that significant momentum for climate-related disclosure is building. And while TCFD remains an entirely optional and market-driven mechanism, the report also highlights the increasing number of implementation initiatives from governments, regulators, investors, and businesses – including a number of initiatives that are slowly moving us towards standardised, machine-readable sustainability-data.
To support companies’ implementation efforts, TCFD has also published two guidance documents in order to aid companies with climate-related risk scenario analysis and on integrating climate-risk into existing risk management processes.