Golder has joined the Financial Stability Board’s (FSB) Task Force on Climate-related Financial Disclosure (TCFD) as a supporter. The FSB is an international body that monitors and makes recommendations about the global financial system. In 2015 it established the TCFD for the purpose of developing voluntary, consistent climate-related financial risk disclosures for companies to use when providing information to investors, lenders, insurers, and other stakeholders.
“Because climate change presents a significant financial risk to the global economy, the world’s financial markets need clear, comprehensive, high-quality science to support decisions on the physical and transition risks associated with climate change. Golder is proud to be a TCFD supporter and welcomes the announcement by the UK Government for mandatory corporate disclosures by 2025,” said Simon Copping, Golder’s Managing Director, UK & Ireland. “We expect other countries will take a similar line and are now seeing and welcoming the inclusion of climate change risk as part of mainstream business decision making.”
Currently, according to the World Economic Forum’s 2020 Global Risks Report, climate change risks rank above data fraud, state collapse or crisis, energy price shocks and critical information infrastructure breakdown as having the most negative impact on companies. In response, governments and private sector entities are considering a range of options for reducing global emissions, which could result in disruptive changes across economic sectors and regions in the near term.
In April 2015, the G20 asked the FSB to consider climate risk and in December 2015 the FSB launched the industry-led TCFD to develop recommendations on climate-related financial disclosures. The TCFD published its final recommendations in June 2017 and its latest status report in October 2020. The Task Force currently consists of 31 members from across the G20, representing both preparers and users of financial disclosures.
Golder joins more than 1,600 other supporters from 70 countries from a variety of industries in both the private and public sectors, who support the TCFD recommendations report. Organizations that want to better understand how climate change may impact their business are encouraged to reach out to Golder’s team of leading environmental consultants who can assist clients in navigating the processes and frameworks recommended by the TCFD.
Organizations that want to better understand and implement climate-related disclosures are encouraged to reach out today.