Integration and alignment key to implementing FSB Task Force on Climate-related Financial Disclosures recommendations

The International Integrated Reporting Council (IIRC) welcomes the release of the FSB Task Force on Climate-related Financial Disclosures (TCFD) recommendations – which uphold the key principles of Integrated Reporting – that companies should adopt an integrated approach to their risk management and that climate change is itself not simply an environmental issue, but a financial challenge for companies and for the stability of the global economy.

Commenting on the publication of the recommendations, Richard Howitt, CEO, IIRC said, “The fact that prominent companies already adopting Integrated Reporting, including Unilever, HSBC, ING Group, BNP Paribas, Aegon, ENGIE Group, and Tata Steel are amongst those today committing to implement the task force recommendations, sends a very powerful signal to companies across the world.

“The IIRC shares the task force’s vision that this isn’t just about businesses changing, but about reshaping the whole capital market system and, as convener of the global Corporate Reporting Dialogue, we are proud that the major financial and non-financial reporting frameworks have jointly committed to integrating the task force recommendations in our work to achieve a more aligned and coherent reporting system overall.

“We applaud Mark Carney and Michael Bloomberg for their work in bringing this topic to the attention of businesses and investors across the world and for the collaborative and inclusive approach they have taken in developing the recommendations, including directly with the Corporate Reporting Dialogue.

“As a member of the B20 Group of business leaders, the IIRC is giving full support towards efforts to ensure that G20 governments accept these recommendations at their summit later this month and to actively remove any potential barriers to their adoption in local regulation.

“I call on businesses to consider the integration of information in their reporting across all of the resources and relationships they use and affect, including human, social and relationship capital. People are the ultimate victims of climate change and businesses must understand the inter-relationship of all of the global challenges we face and respond in an integrated way.

“Our commitment today is to do everything to support the immediate implementation of the TCFD recommendations enabling climate risk to be fully integrated into mainstream business and investor decision-making, improving resilience and reducing risk.”