Financial Stability Board’s TCFD published its annual status report
The Task Force on Climate-Related Financial Disclosures (TCFD) highlighted encouraging progresses in Corporate Climate Reporting, but still insufficient.
The TCFD has published this summer its yearly report on the state of corporate climate related reporting. Led by Michael Bloomberg, the TCFD focuses on improving climate reporting practices in order to make business more efficient and resilient against climate change challenges.
The 2019 report shows progress in terms of information quality and availability in climate reporting, but, on the other hand, as the effect of climate change intensifies, not enough companies report about their climate related risks and opportunities and the available data is often not enough for investors. The report also highlights a widespread lack of transparency concerning both the potential financial impact of climate issues and the resilience of strategies based on scenario analysis. Last of all, the TCFD urged companies to involve more functions, as a critical tool to mainstream climate related issues.
At European level, The European Commission is facilitating the work of European Reporting Lab, whose Task Force on Climate Related Disclosure, building on the TCFD work, is developing best practices to help companies improve the quality of their reporting. CSR Europe, as member of the Task Force, is collaborating in reviewing a core group of 100 reports, and it is offering a series of webinars to discuss the results of such work, which will be critical to help business to comply with the EU legal requirements, which will be upscaled as the Directive on Non-Financial Disclosures will be updated, likely in 2021.