This consultation from the Task Force on Climate-related Financial Disclosures (TCFD) sets out recommendations for consistent, comparable, reliable, clear and efficient climate-related disclosures by companies, as requested in the FSB’s proposal. The recommendations provide a framework for the disclosure of climate-related risks in financial filings. The TCFD framework includes disclosures that relate to the way firms consider the impact of climate change on their governance, risk management and strategy and sets out metrics and scenarios firms should consider disclosing.

The TCFD was established by the FSB in December 2015 following a request from the G20 in April 2015 for the FSB to consider the financial stability risks associated with climate change. As part of this work the FSB concluded that one of the most effective ways for addressing the financial stability risks that might emerge from climate change was effective disclosures to be developed to ensure that climate-related risks are effectively understood by financial markets. Effective disclosure of climate-related financial risks will help to avoid an abrupt repricing of risk and therefore will reduce risks to financial stability.

The TCFD will publish its final report in time for the G20 Leaders’ summit in Hamburg in July. The TCFD consultation closes on 12 February and responses can be submitted on the TCFD website.