Carney Hails Support For Climate-Related Reporting Framework

Carney Hails Support For Climate-Related Reporting Framework
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Bank of England governor Mark Carney has cheered mounting support for a campaign to improve climate-related disclosures around the world as 237 firms with a stock market value of more than $6 trillion (£4.5 trillion) have signed up to back the plans.

The Task Force on Climate-related Financial Disclosures (TCFD) – set up by the Financial Stability Board (FSB), which is chaired by Mr Carney – has seen support from the number of firms and groups more than double since June alone, when it published a raft of voluntary recommendations.

The growing list of those who have got behind the task force includes more than 150 financial firms, responsible for assets of over $81.7 trillion (£61.2 trillion).

Mr Carney said he was “delighted” with the support for the disclosure recommendations.

He said: “Markets need the right information to seize the opportunities and mitigate the risks that are being created by the transition to a low carbon economy.”

He added that the list includes 20 of 30 major global banks, eight out of 10 of the largest asset managers and a raft of insurance giants and pension funds.

“This solution, of the market and for the market, is truly entering the mainstream,” he added.

He said that companies will start to put into practice the task force framework over the coming year.

The announcement came as international leaders gathered in Paris to mark the second anniversary of the climate change plan agreed in the French capital in 2015.

In June, the FSB’s task force drew up voluntary recommendations on climate-related information that companies should disclose to help investors, lenders, and others make sound financial decisions and assess climate-related risks.

One of the key recommendations asks firms to look at how their strategies might change to address risks of climate change under certain scenarios, including a 2C or lower scenario.

Former New York mayor Michael Bloomberg, chair of the Task Force, said: “Climate change poses both economic risks and opportunities. But right now, companies don’t have the data they need to accurately measure the risks and evaluate the opportunities.”

He said the lack of climate-related financial data “prevents” firms from making sustainable investments with strong returns.

Supporting companies span sectors including construction, consumer goods, energy, metals and mining and transport, with headquarters across 29 countries.