New Recommendations To Improve Climate-Related Financial Disclosures
June 29, 2017 /3BL Media/ - New recommendations released today by the Task Force on Climate-related Financial Disclosures, or TCFD, will play a critical role in improving climate-related financial disclosures, providing investors with the important information they need to make better short-term and long-term investment decisions, Ceres CEO and President Mindy Lubber said in a statement today.
As seen in the unprecedented support by shareholders for climate-related disclosures at ExxonMobil and other major energy companies, investors increasingly expect companies, to assess and disclose material financial risks posed by climate change. Investors understand that these disclosures will be essential for minimizing risks in their portfolios and helping companies they own prosper in a low-carbon economy, and must be an urgent priority.
Many companies have been slow to recognize the business opportunities and risks posed by climate change and disclose material risks in their financial filings. Companies should view the new TCFD recommendations as an opportunity to develop a better strategic understanding of how climate risks and opportunities may affect their business over time.
The TCFD recommendations, which were crafted by a geographically diverse group of business leaders from financial and non-financial sectors, help companies in all industries understand the significant financial opportunities and risks associated with climate change, and provide investors with the information they need to make better investment decisions. That’s why more than 360 global investors with $19 trillion dollars in assets under management announced their support for these recommendations, and over 100 global company and investor CEOs today are elevating their voices in support of the TCFD’s work. It is clear that the implementation of these recommendations is an important step towards delivering the commitments of the Paris Agreement and keeping global warming to below 2-degrees Celsius.
We look forward to working with investors, companies and the TCFD on widespread adoption and implementation of their recommendations across every sector of the global economy.
Ceres is a sustainability nonprofit organization working with the most influential investors and companies to build leadership and drive solutions throughout the economy. For more information, visit www.ceres.org and follow @CeresNews.