A climate-related task force which is chaired by Michael R Bloomberg has reached more than 1,000 supporters globally.
Supporters of The Task Force on Climate-related Financial Disclosures (TCFD) have a market capitalisation of $12 trillion and are in support of global companies building a more resilient financial system through climate-related disclosure.
Global companies can build a more resilient financial system by improving their reporting on the impact of their operations on the environment.
The 1,027 supporters of recommendations set by TCFD to help global markets adjust appropriately to the effects of climate change are headquartered in 55 countries.
The supporters include corporations, national governments, government ministries, central banks, regulators, stock exchanges and credit rating agencies and firms operating in chemicals, energy, insurance, metals and mining, oil and gas, and transportation industries.
Of the supporters, 473 are financial firms with a market value of $138.8 trillion.
By implementing TCFD's recommendations, companies can:
- Better access to capital by increasing investors' and lenders' confidence that the company's climate-related risks are appropriately assessed and managed,
- Better ability to meet existing disclosure requirements by reporting material information in financial filings,
- Increased awareness and understanding of climate-related risks and opportunities within the company resulting in better risk management and more informed strategic planning, and
- Proactively addressing investors' demand for climate-related information in a framework that investors are increasingly asking for.
"Reaching this important milestone for the TCFD shows that companies and global organisations are accepting that climate risk is financial risk. Today's announcement also underscores the significant investor demand for information that will help them mitigate potential risks and evaluate opportunities in the transition to the low-carbon economy," said Mary Schapiro, Head of the TCFD Secretariat.
TCFD was established in 2015.
Click here for more information about the task force.