Our second TCFD research report in Black Sun’s Horizon Series finds that 67% of FTSE 100 companies reference the Task Force on Climate-related Financial Disclosures (TCFD) in their reporting, although an increase from 39% last year, still few companies are meeting all 11 disclosure recommendations.
This is against the backdrop of TCFD supporters passing the 1,000 mark, Larry Fink’s announcement that Blackrock will push companies to make TCFD aligned disclosures, the FRC’s upcoming review of climate disclosures, the Investment Association calling for listed firms to report on climate risks and FCA’s proposal to require premium listed companies disclose on a comply or explain basis from 1 January 2021.
Although companies will be affected differently by climate-related challenges, what will remain the same is the high level of expectation from investors and other stakeholders around the reporting of climate-related issues
According to Sallie Pilot, Director of Insight and Engagement at Black Sun, “We are facing tremendous challenges – socially, environmentally and economically, and amidst a terrible situation we need to use it as an opportunity to drive change. As Mark Carney recently commented ‘we have a situation with climate change which will involve every country in the world and from which we can’t self-isolate.’ Climate-related reporting is important for helping companies prepare for the future, specifically in assessing their long-term viability and integrating climate-related issues into their decision-making processes.
One of the key goals of the TCFD is to elevate climate-related issues to board level, and although it focuses on climate, we believe that approaching disclosure in line with recommendations should be extended to other material sustainability-related issues. This will help companies differentiate themselves in the eyes of investors and wider stakeholders and manage their business for resilience.”
Other findings from the report include:
The research report outlines the status of the TCFD reporting around the five thematic areas – Leadership, Governance, Strategy, Risk Management and Performance Metrics and Targets – drilling down further to the 11 recommendations.
About Black Sun
Black Sun is a global group of strategic advisors, consultants and stakeholder engagement specialists. We help global brands transform their stakeholder relations, fuel innovation, and drive more sustainable business practices.
We partner with visionary companies to define and communicate their purpose, strategy, performance and culture and to bring to life their value creation story. Our services and solutions directly address the business-critical concerns of today; best-practice disclosure and reporting; effective communication of their long-term sustainability story; building trust and deepening engagement through digital communications.
Explore our thinking and learn from global thought leaders through
our blogs, podcasts, webinars, and events.