Originally posted on bloomberg.com.
Climate change not only poses serious threats to communities in the form of natural disasters such as catastrophic floods, droughts and storms, but it also impacts businesses operating in the affected communities. Companies around the world, and in nearly every sector, are increasingly acknowledging that climate change presents significant risks to the economy, while battling climate change may bring new opportunities for growth as well.
Given that climate change is not only an environmental problem but a business one as well, the Financial Stability Board (FSB) formed the Task Force on Climate-related Financial Disclosures (TCFD) in December 2015 to address the impact climate change is having on companies and the global financial system through disclosure. Spearheaded by FSB Chairman and Bank of England Governor Mark Carney and chaired by Michael Bloomberg, in 2017 the Task Force issued recommendations aimed at helping companies disclose decision-useful information which will enable financial markets to better understand climate-related financial risks and opportunities. The voluntary recommendations are designed to help companies identify and disclose the potential financial impacts of climate-related risks and opportunities on their businesses, which in turn will help lenders, insurers and investors better assess and price those risks and opportunities. Ultimately, this disclosure can help drive capital towards sustainable investments, building a resilient economy.
Click here to read the full story.
Click here to access Bloomberg's 2017 Impact Report, which integrates the TCFD recommendations for the first time.
KEYWORDS: tcfd, FSB, Bloomberg, bloomberg impact, Task Force on Climate-related Financial Disclosures