The Task Force on Climate Related Financial Disclosures (TFCD) released it's fifth annual status report. It describes alignement of companies' reporting with TFCD recommendations, which provide a framework for companies to develop more effective climate-related financial disclosures.
The report shows good progress in adoption of TFCD recommendations and increase in the percent of companies disclosing information in line with its recommendations. Furthermore it is positive to see that regulators and international standard setters have adopted the TCFD recommendations in developing climate-related reporting requirements and standards, such as the recent proposals by the U.S. Securities and Exchange Commission, the International Sustainability Standards Board, and the European Financial Reporting Advisory Group to name a few.
However the Task Force cautions that, in light of IPCC report in April 2022 which indicated that "without immediate and deep emissions reductions across all sectors, limiting global warming to 1.5°C is beyond reach", it is now crucial that more companies should consider the impact of climate change on their businesses and disclose related material information.
The report highlights key trends and findings over the past 5 years as well several interesting case studies by different companies on Board Oversight.