Over 1,000 organisations support disclosing climate change risks

Over 1,000 organisations support disclosing climate change risks

Over 1,000 global organisations, worth a combined $12 trillion, have shown their support in disclosing risks posed by climate change.

The Task Force on Climate-related Financial Disclosures (TCFDs) stated that sign ups to reporting recommendations continues to grow.

The TCFDs provides a variety of ‘best practice recommendations’. These recommendations help markets to access financial risks associated with climate change through disclosing climate strategies and corporate environmental performance.

As a result, the recommendations help minimise stranded asset risks by showcasing how prepared companies are for their transition to net zero.

In addition, research shows companies that report in line with TCFD perform better than their peers. It also lowers their risk profile.

The recent surge in sign ups comes after the World Economic Forum in January. At the event, they stated that climate and environmental risks are within the top five threats facing our global economy. This risk has resulted in pressure on companies, by the public and investors, to develop reliable climate strategies.

In summary, a total of 1,027 organisations, spanning 55 countries, have signed up to the TCFD. The included organisations cover both public and private sectors in a range of industries.

Despite the increase in sign ups, the task force are concerned that it is still not gaining enough traction to have the desired effect in guarding against escalating risks.

You can find more information on this at Businessgreen.com