Climate change presents the global economy with an array of risks perhaps unprecedented in magnitude and complexity. Yet there is minimal public information on the risk that climate change poses to companies, including financial institutions. For that reason, the Financial Stability Board last year established the Task Force on Climate-related Financial Disclosures, which today issued a report proposing a series of disclosure practices designed to provide investors, lenders, and other stakeholders a fuller picture of the climate-related risks confronting companies from every sector.
A new Sightlines InFocus — by Task Force Secretariat members Mary Schapiro and Didem Nisanci and co-authors Stacy Coleman and Jeff Stehm — discusses the report’s specific recommendations, which will likely become industry best practices for climate-related financial disclosure. Promontory Financial Group, an IBM Company, advised the Task Force on the report’s recommendations.