January 17, 2018
January 16, 2018
Reduce Risk, Seize Opportunity: Steps to Incorporate the Recommendations of the Task Force on Climate-related Financial Disclosures
The challenge of reporting climate-related risks isn’t just surmountable—it’s an opportunity.
Through 10-K filings and reports to boards of directors and shareholders, companies disclose a wide variety of risks to their business and infrastructure. The Task Force on Climate-related Financial Disclosures (TCFD)—chaired by Michael Bloomberg and established by the Financial Stability Board at the request of G20 Finance Ministers and the Central Bank of Governors—calls for companies to expand their thinking and reporting on risks to include climate-related risks to business, operations, and financial conditions. CDP (formerly the Carbon Disclosure Project) already has integrated TCFD recommendations into its disclosure requests, and it advocates for mandatory climate disclosures across G20 countries.
Given the backdrop of the Paris Climate Agreement to limit global temperature rise to well below 2 degrees Celsius, by reducing greenhouse gas emissions, more and more organizations are making ambitious public climate commitments. The increase in commitments is also driven by an organization’s stakeholders such as, employees, investors, and customers, that see long-term value in incorporating climate change and related effects into its business strategy. Organizations who have made these commitments then face the challenge of determining how they can act on their pledges.
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