Financial markets need better, more comparable and complete information about climate change. The Task Force on Climate-related Financial Disclosures (TCFD) aims to address this issue through their Recommendations, designed to help companies disclose climate-related financial risks and opportunities. To support the implementation of the recommendations WBCSD and the TCFD have convened “Preparer Forums” for priority sectors: oil and gas, electric utilities, chemicals, materials (cement), transport and agri-food.
One of the essential functions of financial markets is to price risk to support informed, efficient capital-allocation decisions. Accurate and timely disclosure of operating and financial results are fundamental to this. Yet, one of the most significant, and perhaps most misunderstood, risks that organizations face today relates to the physical and transitional impact of climate change.
Consistent, comparable and reliable information will improve how climate-related risks are assessed, priced and managed. Companies can more effectively measure and evaluate their risks and act on opportunities; investors can make informed capital allocation decisions; and lenders, insurers, underwriters will be better able to evaluate their risks and exposure over the short, medium, and long-term.
The TCFD Preparer Forums bring leading companies together to discuss disclosure practices, work that’s needed to enhance disclosure effectiveness and implement the TCFD recommendations. In the Forums, members will identify examples of good practice, develop disclosure roadmaps and seek investor perspectives on TCFD disclosures, including how market participants use the information.