GHG Daily Monitor Vol. 1 No. 230
Visit Archives | Return to Issue
GHG Monitor
Article 5 of 5
December 15, 2016

G20 Task Force Releases Climate Disclosure Recommendations

By ExchangeMonitor

Climate change poses significant risks to the world’s business, organizations, and markets, but current financial reporting practices do not adequately address that threat, according to a report Wednesday from the Group of 20 nations Task Force on Climate-related Financial Disclosures. “The Task Force developed four widely adoptable recommendations on climate-related financial disclosures that are applicable to organizations across sectors and jurisdictions. Importantly, the Task Force’s recommendations apply to financial-sector organizations, including banks, insurance companies, asset managers, and asset owners,” the report says.

The task force’s recommendations for standard climate-related financial disclosures are:

  • “Disclose the organization’s governance around climate related risks and opportunities;
  • Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning;
  • Disclose how the organization identifies, assesses, and manages climate-related risks; and
  • Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities.”

According the report, “Recognizing that climate-related financial reporting is still at an early stage, the Task Force’s recommendations provide a foundation to improve investors’ and others’ ability to appropriately assess and price climate-related risk and opportunities. The Task Force’s recommendations aim to be ambitious, but also practical for near-term adoption.”

Comments are closed.

Partner Content
Social Feed