23 March 2018
The Financial Stability Board (FSB), at the request of the Group of 20 Finance Ministers and Central Bank Governors, recently released recommendations for voluntary climate-related financial risk disclosure standards applicable to companies' regulatory filings. The recommended disclosure standards apply chiefly to companies in the financial industry, including asset managers, banks and insurance companies, among others. The four key elements of the climate-related financial disclosure recommendations address a company's governance around climate-related risks and opportunities; actual and potential impacts of climate-related risks on a company's business, strategy and financial planning; processes used by a company to identify, assess and manage climate-related risks; and metrics used to assess climate-related risks and opportunities. While the FSB's recommendations do not impose any obligations on reporting companies, the standards have been developed with an aim of near-term adoption. For more information, see https://www.fsb-tcfd.org/wp-content/uploads/2017/06/FINAL-TCFD-Report-062817.pdf.