Corporations, especially those in the financial and energy sectors, should provide investors with clear and systematic disclosure of the risks that climate change poses to their future economic health, a task force reporting to Bank of England Governor Mark Carney recommended Wednesday.
The group, headed by Bloomberg LP founder Michael Bloomberg, pointed to carbon-intensive, fossil-fuel companies as being among those that will be most significantly affected by the transition to a lower-carbon economy, with risks being borne by their lenders and investors.
A task force led by Michael Bloomberg and backed by Mark Carney has urged companies to disclose to investors the impact of climate change on their businesses.
The governor of the Bank of England and the billionaire media owner are behind a new set of recommendations designed to give investors, lenders and insurers a better idea about how climate change will affect individual businesses.
Companies should use a range of existing, publicly-available climate-related scenario analysis or develop their own in order to assess the risks posed to their business by climate change, according to the Financial Stability Board (FSB) Task Force on Climate-Related Financial Disclosures (TCFD).
TCFD says companies should consider risks posed to their businesses by the world transitioning, in varying degrees, to a low-carbon economy, as well the physical risks posed by a warmer planet.
New York, September 19, 2016 /3BL Media/ – Today, the UN Global Compact will announce four new platforms – in partnership with GRI, Monday Morning/Sustainia, Principles for Responsible Investment (PRI) and Volans – to help shape the next generation of sustainable development initiatives and partnerships for business.