Breaking the tradegy of the horizon - climate change and financial stability
In April 2015, G20 Finance Ministers and Central Bank Governors asked the Financial Stability Board (FSB) “to convene public- and private- sector participants to review how the financial sector can take account of climate-related issues”. In November 2015 the FSB published a proposal for the creation of an industry-led disclosure task force on climate-related risks. On 4 December 2015 the FSB announced that it was establishing the Task Force, with Michael R. Bloomberg, appointed as Chair.
Here the preliminary tasks on climate-related financial risks:
Given that access to better quality information on climate-related financial risks will allow market participants to understand and manage these risks better, the FSB welcomed the phase one report to be issued by the industry-led Task Force on Climate-related Financial Disclosures (TCFD) on 1 April 20161and the TCFD’s intention to undertake extensive stakeholder consultation. The TCFD, chaired by Michael Bloomberg, was established by the FSB in December 2015, to develop voluntary, consistent climate-related financial disclosures for use by companies in providing information to lenders, insurers, investors and other stakeholders. Members of the industry-led Task Force presented the findings from the phase one report, which surveys the landscape of existing climate disclosures, discusses fundamental principles of effective, relevant disclosure and sets out the scope and objectives of the next phase of the TCFD’s work. The TCFD will present its final report, including recommendations for voluntary corporate disclosures, to the FSB by the end of 2016.
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