Legal & Regulatory News

Task Force on Climate-related Financial Disclosures publishes 2020 status report

The Task Force on Climate-related Financial Disclosures (TCFD) has published its 2020 status report, highlighting that over the past 15 months the number of organisations expressing support for the TCFD has grown more than 85%, reaching over 1,500 organizations globally. Many of these companies have started to implement the TCFD recommendations or continue to refine and improve their climate-related financial disclosures. The key takeaways of the report are that:

• nearly 60% of the world’s 100 largest public companies support the TCFD, report in line with the TCFD recommendations, or both;
• disclosure of climate-related financial information has increased since 2017, but continuing progress is needed;
• energy companies and materials and buildings companies are leading on climate-related disclosures;
• one in 15 companies reviewed disclosed information on the resilience of its strategy;
• asset managers and asset owners reporting to their clients and beneficiaries alone is seen to be insufficient; and
• expert users find the impact of climate change on a company’s business and strategy as the “most useful” for decision-making.

The TCFD has also issued guidance on two topics – scenario analysis for non-financial firms and risk management integration and disclosure – as well as a consultation document on forward-looking financial sector metrics, which closes on 27 January 2021.

Click here to access the 2020 status report.