At a Climate Week event held at Bloomberg headquarters, the Task-Force on Climate-related Financial Disclosures (TCFD) celebrated the release of its Good Practice Handbook.
Developed by the Climate Disclosure Standards Board and the Sustainability Accounting Standards Board, this handbook offers very specific answers to the much-asked question “What does TCFD look like in practice?” with real-world examples of TCFD-aligned disclosures in mainstream reports across various G20 countries. It is organized around the four core TCFD pillars: governance, strategy, risk management, and metrics and targets. The Good Practice Handbook contextualizes the examples with explanations and call-outs about the current global state of TCFD disclosures, and will assist organizations across all sectors in implementing TCFD recommendations.
The release of the Good Practice Handbook is an important step toward building momentum for the widespread implementation of climate-related financial disclosure.
The release of the Good Practice Handbook is an important step toward building momentum for the widespread implementation of climate-related financial disclosure. While nearly 800 organizations have publicly expressed support for the TCFD, far fewer have implemented the guidelines. According to TCFD’s 2019 Status Report, the average number of recommended disclosures addressed per company has increased from 2.8 in 2016 to 3.6 in 2018 — a 29% increase in two years. The increase is an improvement, but not fast enough. At the event, Curtis Ravenel, Global Head of Sustainable Business and Finance at Bloomberg, spoke about the success of the Task Force’s recommendations so far, but emphasized the importance of their full implementation.
To close this gap, the Task Force has now released a suite of guidance to assist companies in putting the TCFD recommendations into practice:
We’re encouraged to see best practice examples and guidance for TCFD created by the Climate Disclosure Standards Board (CDSB) and the Sustainability Accounting Standards Board (SASB). Increased transparency around climate-related financial risk will help investors make informed decisions.
Read more about TCFD in Issue 19 of Radar.