Legal & Regulatory News

TCFD publishes 2022 status report

On 13 October 2022, the Task Force on Climate-related Financial Disclosures (TCFD) published their fifth annual 2022 Status Report (the Report), reflecting on the milestones in relation to the implementation of their recommendations and other developments in climate-related disclosures.

The Report suggests that over the past five years, there has been a steady increase in the percentage of companies disclosing information in line with TCFD recommendations, as well as significant changes in the regulation and supervision of reporting requirements. The Report suggests that this change in reporting is the result of the continued growth in investor demand for companies to report information in line with the TCFD recommendations. Other key takeaways and findings in the Report include the following:

• All regions have significantly increased their levels of disclosure over the past three years, with 60% of European companies disclosing across the 11 recommended disclosures;
• 95% of survey respondents saw an increase in the availability of climate-related financial disclosures since 2017; and
• 90% of investors and other users incorporate climate-related financial disclosures in financial decision-making, with 66% suggestion they use it to price financial assets.

However, the Report also suggests that more progress is needed to improve the transparency of the potential impacts of climate change on companies, asking that management consider the impact and seek to find ways to mitigate and adapt, disclosing related material information.

Click here to view the 2022 Status Report.

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