TCFD: An update on corporate disclosure following the second status report
Climate change is now appearing in financial services disclosure more than ever before.
What is the role of the the TCFD recommendations in this change?
In June 2019, the TCFD released its second status report, indicating increased adoption of its recommendations.
To coincide with its release, we are updating our previous analysis into the extent to which this adoption has been reflected in supporters’ corporate disclosure.
Key findings:
- The number of finserv TCFD supporters mentioning climate change with a high emphasis has more than doubled from 14% in 2016, the year before the TCFD recommendations were published, to 33% in 2019.
- Climate change is predominantly discussed through a risk rather than an opportunity lense – with 54% of finserv TCFD supporters referring to the topic in relation to risk and 20% in relation to opportunity in 2018.
- Interestingly, climate change has been predominantly mentioned in the context of distant future risks, rather than in recognizing the upcoming implications to business.
- The number of climate-related regulations and voluntary initiatives has almost doubled since 2014.
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What can you expect to see in this report?
Financial services companies are talking about climate change more than ever before.
Datamaran shows that TCFD supporters have placed increased attention on climate change and greenhouse gases in their financial reports since the introduction of the recommendations.
High emphasis reporting has increased also among the largest financial services companies that don’t support the TCFD (market capitalization above $20bn) – from 12% in 2017 to 19% in 2019, the period since the introduction of the TCFD recommendations.
The financial impact of climate risks
“The TCFD recommendations give companies the tools to improve their governance and risk management practices, and to build resilience into their strategies.
The TCFD truly speaks to organizations in a language they understand, not by warning them about the impact they have on the environment, but instead getting them to understand the financial impact the environment can have on them. It all goes to show the value of voluntary initiatives as an accelerator to help companies do the right thing.”
Donato Calace, Director of Accounts and Innovation, Datamaran
More about the TCFD
Click on each question to learn more.
What is the TCFD and what is its purpose
How many companies support the TCFD
The methodology behind this report
Findings from the previous research
About Datamaran
The only Software as a Service (SaaS) solution for non-financial risk management, Datamaran makes benchmarking, materiality analysis and non-financial issues monitoring robust, evidence-based and resource-efficient.
Entirely unique in its field, the platform provides a data-driven perspective into regulatory, strategic and reputational risks and opportunities.
Customers track 100 non-financial topics by sifting and analyzing millions of data points from publicly available sources, including corporate reports, regulations and initiatives, news and social media.
The insights are applied across multiple business teams.
