10 Companies Take Lead to Make Climate-Related Financial Disclosures
(3BL Media/Justmeans) – Although climate change poses serious economic risks, many investors lack clear information about which companies are most exposed to the risks and which are best prepared to counter them. According to Michael Bloomberg, without risk disclosure, it is difficult to correctly price the financial impacts of climate change.
To address this issue, the Task Force on Climate-related Financial Disclosures (TCFD) has published recommendations for reporting climate-related financial information in mainstream reports. A group of 10 companies across seven sectors have become the first companies to make the commitment to implement the TCFD recommendations within three years.
These companies will disclose information about the financial implications of climate-related risks and opportunities to understand how their business can adapt to a changing climate and exploit the opportunities that the low-carbon economy is already creating.
The first signatories include Aviva plc, Royal DSM, Enagás, Ferrovial, Iberdrola, Marks & Spencer, Philips Lighting, Sopra Steria Group, Wipro Ltd and WPP. This announcement was made recently at two key sessions of Climate Week NYC. The sessions highlighted the urgency of scaling up high-quality disclosure of climate-related information to allow companies and investors to make better decisions about their capital allocation risks.
Kirsty Cooper, Group General Counsel and Company Secretary, Aviva, said that consistent and well used climate-related financial information provides an important catalyst for global markets to help address climate change.
Feike Sijbesma, CEO and Chairman of the Managing Board, Royal DSM, said that the company is committed to working together with other companies to explore how practical implementation of the Recommendations can serve a well informed business-investor dialogue.
Marcelino Oreja Arburúa, CEO of Enagás, said that the TCFD recommendations represent a useful tool to show its providers of capital how the company is addressing and managing the challenges posed by the energy transition.
Nicola Kimm, Head of Sustainability, Environment, Health & Safety, Philips Lighting, said that this initiative will help the company identify further avenues for climate-related investments.
Vincent Paris, CEO, Sopra Steria, said that as a major player in digital technology, Sopra Steria continues to be proactive in reducing the carbon footprint of its activities and supports its clients to do the same.
Anurag Behar, Chief Sustainability Officer, Wipro Limited, said that this initiative will help the company progress further on its work in integrated mainstream reporting, and help it better manage climate-related risks.
Simon Messenger, Managing Director, Climate Disclosure Standards Board, said that these companies have demonstrated their leadership by stepping up their efforts to disclose better quality information about their readiness to address risks associated with climate change. The disclosure of consistent and comparable information about the physical and transitional climate risks will contribute to building more transparent and therefore more resilient financial markets.