Asset managers continue to provide an incomplete picture to investors about the risk posed to their investments by climate change, TCFD report warns
While a signficant and growing proportion of the global economy now recognises the need for corporate climate risk disclosures, there remains a significant gap between words and action, marked by a continued failure among asset managers to adequately relay climate risk data to their clients.
That is the conclusion of the Task Force on Climate-related Financial Disclosures’ (TCFD) latest annual report today, which notes that support for its voluntary risk reporting guidelines continues to grow. It reveals more than 1,500 organisations worldwide are now supporting the initiative, which was launched three years ago to help companies and investors improve their understanding of the threats to their business and investments posed by climate change and the transition to a low carbon economy.
That figure has grown 85 per cent over just the last 15 months, it states, with nearly 60 of the world’s 100 largest public companies now engaged with the TCFDs to some degree, either by expressing their support for the initiative or reporting their company data in line with the guidelines.
Meanwhile 110 regulators and government entities area also now backing TCFDs, including the governments of the UK, Canada, Japan, France, Sweden and New Zealand, the latter of which has made disclosures mandatory for public companies with assets over NZ$1bn, according to today’s report.
But while hailing the “significant momentum” behind the initiative, it warns that far