Published 4 years ago.
About a 2 minute read.
Image: Global Reporting Initiative
Sustainability standards setters release implementation guide for complying with TCFD recommendations for communicating about climate-related financial risk.
In June 2017, the Task Force on Climate-Related Financial Disclosures
published recommendations for climate-related financial risk disclosures in
mainstream corporate filings. More than 600 organizations have publicly
expressed support for the recommendations but many have cited a need for
practical guidance on how to implement them. Today, the Sustainability
Accounting Standards Board (SASB) and the Climate
Disclosure Standards Board (CDSB) have jointly
released an effective solution for TCFD implementation by organizations in all
industries and sectors around the world.
“Companies are showing strong interest in managing their exposure to
climate-related risk by committing to the TCFD recommendations. However, few
have a clear understanding of how to implement those recommendations,” said
Madelyn Antoncic, CEO of the SASB Foundation. “SASB and CDSB felt it was
imperative to help companies achieve their goals with this comprehensive guide.”
The TCFD recommendations are market-driven disclosures that allow companies to
gain greater insight into the climate-related risks and opportunities they face,
and deliver consistent, comparable and reliable corporate disclosure to inform
decision-making by investors, lenders, and insurers. Many companies already
disclose some climate-related information, but the financial implications are
often not apparent, and the related performance and risk metrics are often not
comparable. Using CDSB and SASB tools to follow the TCFD recommendations,
organizations can provide more effective climate-related disclosures that are
comparable within industries and have clear links to material financial impacts.
Drawing on each organisation’s already well-established reporting standards,
tools and frameworks, this new guide offers companies the “how-to” to drive
implementation of the 11 recommended TCFD disclosures,
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“The guide takes the recommendations from principles to practice, increasing the
adoption of the TCFD recommendations and enhancing the robustness, consistency
and comparability of such information,” said CDSB Managing Director Mardi
McBrien. “This will not only benefit companies through better risk management
but investors who can use the disclosures to allocate capital at the scale and
pace required to accelerate the transition to a low carbon and climate resilient
The collaboration between SASB and CDSB reinforces the work of the Corporate
Reporting Dialogue’s Better Alignment
a two-year project focusing on driving better alignment in the corporate
reporting landscape, to make it easier for companies to prepare coherent
disclosures that meet the information needs of capital markets and society. In
its first year, the Better Alignment Project is focusing specifically on mapping
elements from the five participating organizations’ sustainability frameworks
against the principles, disclosures, and indicators included in the TCFD
Published May 1, 2019 11am EDT / 8am PDT / 4pm BST / 5pm CEST