The Taskforce on Climate-Related Financial Disclosures (TCFD) has published its 2022 Status Report, which notes a steady increase in climate-related financial disclosures since the TCFD Recommendations were first published.
The TCFD Recommendations were released in 2017 and provide a framework for companies and other organisations to develop more effective climate-related financial disclosures. Recognising that this year marks five years since its Recommendations were published, the TCFD reflects on significant developments and progress made in terms of climate-related financial disclosures, including relative to key milestones identified in its 2017 report.
The TCFD is encouraged by companies' progress in disclosing climate-related financial information aligned with the TCFD recommendations and by the support of regulators and standard setters in using the recommendations as a basis to develop laws, rules, and standards on climate-related financial disclosure. However, the TCFD remains concerned that not enough companies are disclosing decision-useful climate-related financial information, which may hinder investors, lenders, and insurance underwriters' efforts to appropriately assess and price climate-related risks.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
