The UK is becoming and will become a world leader in sustainability reporting, being the first major economy to implement regulation on the TCFD framework, this April.
Time will tell.
The TCFD framework was developed by the Task Force on Climate-related Financial Disclosures, established by the G20 - to encourage companies to report on their climate-related financial risks and opportunities, setting expectations of investor requirements of better understanding company’s exposure and how they manage risk.
I don’t like, ‘To encourage companies’ (Too soft)
There are two sets of recommendations, one for non-financial companies, and one for financial institutions, whilst not mandatory yet, but are intended to provide guidance on how companies can provide relevant information about climate change risks and opportunities in a consistent way.
ESG reporting has its challenges –confusing voluminous data, not standardised and lacking consistency.
To start with. (I can see my English teacher frowning already!)
We have a long way to go.
Let us have a chat.
By John Martin
Keywords: Analytics, Climate Change, Risk Management