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Investors Close In on Global Rules for Climate Risk Disclosure

geralt / Pixabay
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geralt [2] / Pixabay

The investment world moved a step closer to consistent disclosure of corporate exposure to climate risk last week, as the Task Force on Climate-related Financial Disclosures (TCFD), created [3] last year by the international Financial Stability Board of central bankers, revealed the scope and objectives of its plan.

The release was quickly praised by Ceres, the U.S.-based international non-profit that promotes shareholder activism to push companies to adopt and expand sustainable business practices.

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The Task Force’s plans “represent a robust and comprehensive approach to providing investors the information they need,” said Ceres President Mindy Lubber, a director of the Investor Network on Climate Risk, whose 120 institutional members collectively manage over $14 trillion in assets.

However, Ceres urged the Task Force to move more quickly and urgently to spur national securities regulators to adopt its model and require that all publicly-traded companies actually disclose their climate risk.

“A major obstacle to ensuring that companies disclose material climate risk information has been the lack of timely responses by national securities regulators,” commented Ceres Senior Manager Jim Coburn. “The TCFD’s work will encourage them to issue clear reporting guidance or rules, and prompt the U.S. Securities and Exchange Commission to fully enforce its groundbreaking 2010 climate risk disclosure guidance.”