December 4th 2015
During global climate negotiations in Paris, Risky Business Project Co-Chair Michael R. Bloomberg announced the creation of the Task Force on Climate-related Financial Disclosures (TCFD), which he will chair.
Speaking at the event he said, “It’s critical that industries and investors understand the risks posed by climate change, but currently there is too little transparency about those risks… While the business and finance communities are already playing a leading role on climate change, through investments in technological innovation and clean energy, this Task Force will accelerate that activity by increasing transparency. And in doing so, it will help make markets more efficient, and economies more stable and resilient.”
Bank of England Governor and Financial Stability Board (FSB) Chair, Mark Carney explained that the Task Force would seek to understand the physical, liability, and transition risks that are associated with climate change. Carney said, “The FSB is asking the Task Force on Climate-related Financial Disclosures to make recommendations for consistent company disclosures that will help financial market participants understand their climate-related risks.” By having access to better financial information, policymakers and others can better manage their climate risk.
The TCFD will also identify recommendations for consistent, reliable, and efficient climate-related disclosures. Additionally, the Task Force will account for work done by other groups regarding information on climate disclosure.
The TCFD hopes to have accomplished its goal by the end of 2016 and will disclose its full membership and terms of reference in late-December.