A report published by the Taskforce on Climate-related Financial Disclosures (TCFD) has revealed that an 'encouraging' number of businesses are now including climate-related information in their financial disclosures.
The TCFD, which was established in 2015, developed a series of voluntary, consistent disclosure recommendations for use by firms in supplying investors with information on their climate-related financial risks. TCFD members are 'drawn from a wide range of industries and countries across the world'.
The TCFD reviewed reports for more than 1,100 businesses, and found that the disclosure of climate-related information has increased since 2016. However, 'more clarity' is needed on the potential financial impact of climate-related issues on firms.
Commenting on the report, Jon Williams, member of the TCFD, said: 'It's really positive to see the increase in companies supporting the TCFD and beginning to disclose against its recommendations.
'We know that companies are finding it a challenge, particularly in respect of scenarios analysis, a lack of data availability and the need for standardised metrics and targets. We also know that users of disclosures want to see more on the financial implications of climate-related impacts on companies.'