Growing investor demand for information on how companies are addressing climate change is gaining momentum. More than 100 business leaders and companies this week announced their support for the latest set of recommendations from the Financial Stability Board’s (FSB) Task Force on Climate-related Financial Disclosures (TCFD). Among the supporters of these recommendations are B Team leaders Oliver Bäte, Richard Branson, Bob Collymore, Guilherme Leal, Andrew Liveris, François-Henri Pinault and Paul Polman.
The task force’s much-awaited report, Recommendations of the Task Force on Climate-related Financial Disclosures, focuses on four key areas: governance, strategy, risk management, and metrics and targets. While these represent major points of business operations, they also reflect investor interests.
Adopting these recommendations will help actively drive the shift toward a low-carbon economy. “The FSB Task Force has sent an unequivocal message to companies, financial institutions, and governments: Climate-related financial disclosure is essential for global financial stability and the market-led transition to a low carbon economy,” said Unilever CEO and B Team Leader Paul Polman, “It now falls to businesses and governments to adopt the recommendations without delay.”
To ease this process for companies, the task force has developed a guide to help businesses implementation. It will also continue to promote and evaluate company adoptions through September 2018.
Increased adoption of these disclosures will help steer responsible investment and business practices.