Industry Players Welcome TCFD's Call for Voluntary Climate-Related Financial Disclosures

Shell CEO Ben van Beurden. Image Credit: Shell.

Industry players today were among the global industry players representing $3 trillion in market capitalisation to have publicly supported recommendations of the Financial Stability Board's Task Force on Climate-related Financial Disclosures (TCFD).

The TCFD is a global initiative chaired by Michael Bloomberg that aims to get companies across all sectors to assess more clearly and disclose more transparently both the risks and the opportunities presented by climate change.

"We welcome this announcement by the TCFD. Climate-related disclosure by shipping companies will force the industry to look beyond current challenges and begin to truly prepare for the transition to low-carbon shipping. This will undoubtedly bring the need for a clear maritime decarbonisation pathway to the forefront," said James Mitchell, Finance Lead, Maritime, Carbon War Room.

The Final Recommendations of the Task Force on Climate-related Financial Disclosures, published today, is a voluntary framework for companies to disclose "material risks" and other climate-related information, and specifically in the context of compliance with efforts towards the global 2-degree global warming target set at COP 21 in Paris.

"I agree that companies should be clear about how they plan to be resilient in the face of climate change and energy transition," said Shell CEO Ben van Beurden.

"I believe it is right that it should be transparent which companies are truly on firm foundations over the long-term. I applaud the task force for its work to achieve this aim and I have signed a letter confirming Shell's support for the initiative."

Governor of the Bank of England and FSB Chair, Mark Carney said: "The task force's recommendations have been developed by the market for the market. They set out the disclosures that a wide range of users and preparers of corporate information have said are essential to understanding a company's climate-related risks and opportunities. Widespread adoption will provide investors, banks and insurers with that information, helping minimise the risk that market adjustments to climate change will be incomplete, late and potentially destabilising."

Analysts at PwC predict the initiatives will start to be adopted onwards through 2018.