How have the Task Force on Climate-related Financial Disclosure’s (TCFD) recommendations changed the landscape of climate risk reporting and where is the market headed? The Climate Change Business Journal interviewed Founder & CEO, Emilie Mazzacurati, about the history of the TCFD, it’s uptake to-date and how the recommendations influence other developments on risk disclosure. Emilie explains her view that “early TCFD reports…are focused on showing good faith efforts more than providing hard data on climate risk exposure.” This is due to the preliminary need to explore datasets on climate risk, familiarize stakeholders with the subject and overcome challenges associated with being among the first to disclose risks.
Ongoing industry efforts to develop best-practices for climate risk reporting will likely lead to more widespread adoption of metrics for disclosure. Such initiatives include France’s Article 173, the European Commission’s Action Plan on Sustainable Finance, and the Network of Central Banks and Supervisors for Greening the Financial System. Emilie says, “The market is in exploratory mode: this is an emerging issue, and the collective understanding of impacts on corporations and financial markets is fast evolving. What is clear, however, is that this is a very material issue, and that is here to stay.”
To learn more about developments on climate risk disclosure download the report Advancing TCFD Guidance on Physical Climate Risks and Opportunities or read our newsletter, TCFD Reporting on the Rise.