Organisations should reveal their climate risk governance and banks should reveal their lending to companies with carbon risks, according to recommendations by the G20 Task Force on Climate-Related Financial Disclosures (TCFD).
The possible effects of climate risks and opportunities should be revealed by companies, said the task force.
Organisations should also disclose the methods of risk and opportunity identification, assessment and management as well as the targets and the metrics to evaluate and manage them.
Matt Christensen, global head of responsible investment at Axa Investment Managers, said: “As the US walked away from the Paris Agreement a few weeks ago, it’s clear that the current political context is not 100% favourable for a widespread adoption of these reporting requirements.
“We would like to see the G20 endorse these recommendations and if this is not possible then we would urge the G19 to have the courage to do so. This would send a message to the US that, once again, they stand apart.”
The TCFD was formed by the G20’s Financial Sustainability Board which was itself created in the aftermath of the 2007-08 global financial crisis.
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