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Unofficial summary of TCDF Recommendations, 2017

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Unofficial summary of the Final Recommendations of the Task Force on Climate Related Financial Disclosures, June 2017

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Unofficial summary of TCDF Recommendations, 2017

  1. 1. Final Recommendations of the Task Force on Climate Related Financial Disclosures, June 2017 18Months Task Force on Climate Related Financial Disclosures (task Force) put 18 months effort by consulting with a wide range of business and financial leaders in order to tailor its recommendations & consider how to support companies better communicate key climate- related information. Financial Markets & Transparency Financial Implications of Climate Change Task Force on Climate Related Financial Disclosures “It is increasingly important to understand the governance and risk management context in which financial results are achieved.” “Climate-related risks and the expected transition to a lower- carbon economy affect most economic sectors and industries. Both investors and the organizations in which they invest, should consider their longer-term strategies and most efficient allocation of capital." “To help identify the information needed by investors, lenders, and insurance underwriters to appropriately assess and price climate-related risks and opportunities, the Financial Stability Board established an industry-led task force.” The Task Force developed four recommendations on climate-related financial disclosures which are applicable to organizations across sectors and jurisdictions: What is the Task Force on Climate-Related Financial Disclosures? The TCFD seeks to develop recommendations for voluntary climate-related financial disclosures that are consistent, comparable, reliable, clear, and efficient, and provide decision-useful information to lenders, insurers, and investors. The TCFD’s 32 members were chosen by the FSB to include both users and preparers of disclosures from across the G20’s constituency covering a broad range of economic sectors and financial markets. “Task Force’s key recommended disclosures focuses on the resilience of an organization’s strategy, taking into consideration different climate-related scenarios, including a 2° Celsius or lower scenario." “Organizations already reporting climate-related information under other frameworks may be able to disclose under this framework immediately and are strongly encouraged to do so.” GOVERNANCE STRATEGY RISK MANAGEMENT METRICS & TARGETS “Disclose the organization’s governance around climate-related risks and opportunities.” “Disclose the actual and potential impacts of climate- related risks and opportunities on the organization’s businesses, strategy & financial planning.” “Disclose how the organization identifies, assesses, and manages climate-related risks.” “Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities.” Unofficial summary by Arif Cem Gündoğan For official information please visit: www.fsb-tcfd.org/

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