On October 23, 2018 the Financial Times published an article stating that Larry Fink, CEO of the world’s largest asset manager, BlackRock, had announced that “sustainable investing will be a core component for how everyone invests in the future.” He further explained that sustainable investing did not lead to lower returns and that in his own opinion such a strategy will lead to higher returns.
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.
A key aim of the FSB Task Force is to encourage disclosures that "would enable stakeholders to understand better the concentrations of carbon-related assets in the financial sector and the financial system's exposures to climate-related risks."
More specifically, the Task Force says its recommendations are intended to "help organisations identify and disclose information needed by investors, lenders, and insurance underwriters to appropriately assess and price climate-related risks and opportunities."
March 7, 2016 /3BL Media/ - On the heels of a historic global climate agreement in Paris, investors have filed a record number of shareholder resolutions this year with major U.S. energy companies asking them to disclose their strategies for competing in a global economy that is shifting towards clean energy and away from fossil fuels.