Unofficial summary of the Final Recommendations of the Task Force on Climate Related Financial Disclosures, June 2017

1. Final Recommendations of the Task Force on Climate
Related Financial Disclosures, June 2017
18Months
Task Force on Climate Related Financial Disclosures (task Force) put 18 months effort by
consulting with a wide range of business and financial leaders in order to tailor its
recommendations & consider how to support companies better communicate key climate-
related information.
Financial Markets &
Transparency
Financial Implications of
Climate Change
Task Force on Climate
Related Financial Disclosures
“It is increasingly important
to understand the
governance and risk
management context in
which financial results are
achieved.”
“Climate-related risks and the
expected transition to a lower-
carbon economy affect most
economic sectors and industries.
Both investors and the
organizations in which they invest,
should consider their longer-term
strategies and most efficient
allocation of capital."
“To help identify the information
needed by investors, lenders, and
insurance underwriters to
appropriately assess and price
climate-related risks and
opportunities, the Financial
Stability Board established an
industry-led task force.”
The Task Force developed four recommendations on climate-related financial disclosures which
are applicable to organizations across sectors and jurisdictions:
What is the Task Force on Climate-Related Financial Disclosures? The TCFD seeks to
develop recommendations for voluntary climate-related financial disclosures that are
consistent, comparable, reliable, clear, and efficient, and provide decision-useful information
to lenders, insurers, and investors. The TCFD’s 32 members were chosen by the FSB to
include both users and preparers of disclosures from across the G20’s constituency covering
a broad range of economic sectors and financial markets.
“Task Force’s key recommended disclosures focuses on the resilience of an organization’s
strategy, taking into consideration different climate-related scenarios, including a 2° Celsius or
lower scenario."
“Organizations already reporting climate-related information under other frameworks may be
able to disclose under this framework immediately and are strongly encouraged to do so.”
GOVERNANCE STRATEGY RISK MANAGEMENT METRICS & TARGETS
“Disclose the
organization’s
governance around
climate-related
risks and
opportunities.”
“Disclose the actual
and potential
impacts of climate-
related risks and
opportunities on
the organization’s
businesses,
strategy & financial
planning.”
“Disclose how the
organization
identifies, assesses,
and manages
climate-related
risks.”
“Disclose the
metrics and targets
used to assess and
manage relevant
climate-related risks
and opportunities.”
Unofficial summary by Arif Cem Gündoğan
For official information please visit: www.fsb-tcfd.org/