Supporting the recommendations of the FSB Task Force on Climate-related Financial Disclosures
Climate change is one of the biggest social and economic risks the world faces today. Companies and investors are already being affected by the transition to a low carbon economy and the physical impacts of climate change, the effects of which will only increase over time.
The FSB Task Force on Climate-related Financial Disclosures (TCFD) recommends a framework for disclosing climate related risks and opportunities, going beyond current practices in two significant ways:
- Inclusion in mainstream financial filings; and
- Using scenario analysis to inform business strategy.
The TCFD recommendations were published in June 2017 and can be downloaded at www.fsb-tcfd.org
Consistent adoption of the recommendations will lead to effective measurement and improved company resilience; informed decisions by investors; and better evaluation of risks and exposures by lenders, insurers and underwriters.
Successful adoption relies on Chief Financial Officers (CFOs) leading on implementation of the recommendations, accounting bodies guiding their members, and the investment world acting on the disclosures made.
A4S is working with these key groups to share knowledge and help overcome the challenges faced. To this effect, A4S has issued three Statements of Support for the TCFD recommendations signed by:
- CEOs of Accounting Bodies
- Chairs of Pension Funds
Leading the way
The TCFD responds to a growing trend among the investor and regulatory communities to demand improved financial disclosures from companies in relation to climate risks, through a framework with consistent categorization of climate related risks and opportunities. A number of large investors have already stated that they will ask the companies in which they invest to disclose in line with the recommendations, and a number of regulators are indicating that they plan to amend disclosure rules in response. Leading companies are also signalling their support for the recommendations and a commitment to their adoption, such as the Statements of Support by A4S.
How to get involved
Join your peer CFOs, CEOs of Accounting Bodies or Chairs of Pension Funds in signing a Statement of Support for the TCFD recommendations.
Join our TCFD implementation workshops.
Share this TCFD leaflet and short film with your CFO and finance team.
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