The Task Force on Climate-related Financial Disclosures (TCFD) announced rapidly growing corporate support for its recommendations at the One Planet Summit (Bloomberg, The Guardian, Business Times, Financial News, 12 Dec): 237 companies with a combined market capitalization of over $6.3 trillion have publicly committed to support the TCFD recommendations. This includes over 150 financial firms, responsible for assets of over $81.7 trillion, from a broad range of industries, including construction, consumer goods, energy, metals & mining and transport, headquartered in 29 countries. The number of companies supporting the TCFD recommendations have more than doubled in the five months since the publication in June 2017.
“The response from businesses and investors around the world has been incredibly positive, and we hope many others will join the initiative”, said Michael Bloomberg, Chair of the Task Force. “I am delighted that 237 global companies, from consumer goods giants through to oil and gas majors, have supported the TCFD recommendations. This includes 20 of 30 globally-systemically important banks, eight out of ten of the largest asset managers and many leading insurance companies and pension funds, together responsible for assets of over $81.7 trillion. This solution, of the market and for the market, is truly entering the mainstream” added Mark Carney, FSB Chair (press release here). BlackRock ($6 trillion AUM) sent letters from its corporate-governance team to about 120 companies this week, urging them to report climate dangers in line with the recommendations of the Financial Stability Board’s Task Force (Bloomberg, 11 Dec).
“BlackRock has long been a champion of sustainable investing, as it is important to our clients as well as the overall emphasis we place on long-termism. We have recently deepened our commitment to this set of issues by expanding BlackRock Sustainable Investing under the leadership of Brian Deese, who worked under President Obama as a senior advisor for climate and energy policy. A key component of sustainable investing is climate-related disclosure […]. We support the TCFD’s efforts to improve climate-related financial disclosure by public issuers”, said Philipp Hildebrand, Vice Chairman at Black Rock.
At the national level, France and Sweden step up their collaboration on green finance to boost the transition towards low-carbon and climate-resilient economies. As leading players in the field of green finance, France and Sweden have also declared their support to the implementation of the TCFD recommendations. (Swedish Gov press release here).
On corporate reporting, Ma Jun, the special advisor to the Governor at the People’s Bank of China and chairman, Green Finance Committee of China Society for Finance and Banking, said that this is where China is taking firm, leading steps. While attending the Paris Finance day, he said that China needs RMB 4 trillion ($600 billion) for green investments. Additionally, all corporate bond issuances would now have to disclose environmental information and all major polluting companies will have to publish environmental data this year, and buy pollution liability insurance, creating a new insurance market. By next year, this will apply to all listed companies on a comply-or-explain basis. And by 2020, the explain option will be abandoned, meaning all listed companies will have to comply (RI, 12 Dec).
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