New Bloomberg-led climate taskforce to look at the fundamentals of disclosure in first report

Task Force on Climate-Related Financial Disclosures readies first output

The new taskforce looking at climate disclosure at the behest of the G20 is set to unveil its initial report on Friday this week.

The Task Force on Climate-Related Financial Disclosures (TCFD) was set up at the end of last year by the Financial Stability Board, the Basle, Switzerland-based international body that monitors and makes recommendations about the global financial system.

It was an initiative largely driven by Bank of England Governor Mark Carney and the group is chaired by news and data billionaire and former New York Mayor Michael Bloomberg; its secretariat is run out of Bloomberg’s headquarters in New York.

The ‘Phase 1’ report due this week will sum up its “scoping and analytic work” so far this year. This will lead on to a month-long comment period that will feed into its final ‘Phase 2’ report by the end of 2016.

The first report will outline a set of fundamental principles of disclosure to help provide a “rigorousframework”. It will be divided into four broad categories: 1) landscape; 2) objectives and scope; 3) principles for effective disclosures and 4) stakeholder outreach and engagement.

The second report will go on to set out specific recommendations and guidelines.

The task force, whose members include senior figures from industry and the investment world – but no actual asset owners as such – is tasked with developing “voluntary, consistent climate-related financial risk disclosures” for use by companies in providing information to investors, lenders, insurers, and other stakeholders.

It’s hoped that its recommendations will help firms understand what financial markets want from disclosure in order to measure and respond to climate change risks, and encourage firms to align their disclosures with investors’ needs. Link