Support for the voluntary disclosure recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), is growing among financial firms and organizations, the industry group announced Tuesday.
Two hundred and thirty-seven companies with a combined market capitalization of over US$6.3 trillion have now publicly committed to support its recommendations designed improve transparency and investor decisions stemming from climate risks, the TCFD reports.
The list features more than 150 financial firms that account for over US$81.7 trillion in assets. Major Canadian organizations on the list include Canada Pension Plan Investment Board, Manulife Financial Corp., Royal Bank of Canada, and Toronto-Dominion Bank
"The implications of climate change have a direct impact on the sustainability of the investments we are making today to help pay the pensions of future generations of teachers. The FSB Task Force recommendations are a meaningful step forward in providing the transparency, comparable and consistent information that we require as we navigate the transition to a low carbon economy," says Ron Mock, president and CEO of the Ontario Teachers' Pension Plan, in a statement.
The number of firms supporting the recommendations has more than doubled since the final recommendations were published in June.
"Markets need the right information to seize the opportunities and mitigate the risks that are being created by the transition to a low carbon economy," says Mark Carney, chair of the Financial Stability Board, which set up the task force. Carney noted that the agreements supporters include 20 of 30 globally-systemically important banks, eight of the world's 10 largest asset managers, major insurers and pension funds.
"Over the coming year, issuers will begin to deploy the TCFD framework and through collaboration and engagement with the providers of capital, will together start to release more efficient and decision-useful disclosures. By this time next year, and in time for the Argentine G20 Summit, the Task Force will report on implementation experience, including examples of good practices to support and foster wider adoption," Carney adds.