Progress Report on Climate-Related Disclosures
One year after the publication of the FSB Report on Promoting Climate-Related Disclosures, work to strengthen the comparability, consistency and decision-usefulness of climate-related financial disclosures has moved forward rapidly.
Strengthening firm-level disclosures, as the basis for the pricing and management of climate-related financial risks at the level of individual entities and market participants, is one of the four blocks of the FSB Roadmap for Addressing Climate-related Financial Risks. Globally consistent and comparable climate disclosures are an important tool providing investors and other market participants with the information they need to manage risks, and seize opportunities, stemming from climate change.
This report looks at the progress made since the publication of the FSB’s 2021Report on Promoting Climate-Related Disclosures in a number of areas. It covers:
Progress made by the International Sustainability Standards Board (ISSB) in developing its global baseline climate reporting standard and the work of other international standard-setters on assurance over sustainability-related reporting. Interoperability of the global baseline standard with jurisdictional frameworks will be important to ensure cross-border comparability and consistency on climate disclosures across jurisdictions.
Progress made in the area of assurance, including the work of the International Auditing and Assurance Standards Board, International Ethics Standards Board for Accountants, and the work by IOSCO to support the work on both disclosure and assurance standards.
Progress made by jurisdictions on climate-related disclosure practices, including implementing the FSB recommendations from its 2021 report, as well as steps being taken by jurisdictions to prepare for adopting, applying or otherwise making use of the ISSB climate-related disclosure reporting standard.
Progress made by firms, as reported in the 2022 Task Force on Climate-related Financial Disclosures Status Report.
During the period until the ISSB global baseline standard is agreed and the implementation of that standard across jurisdictions begins to be monitored, there is a continuing need to maintain momentum by monitoring and reporting on progress in firms’ climate disclosures. The FSB has therefore requested that the TCFD prepare another progress report on firms’ disclosures in 2023.