ASCG comments on the recommendations of the Task Force on Climate-related Financial Disclosures

Following a request by the G20 member states the Financial Stability Board has started a Task Force to develop guidelines for Climate-related Financial Disclosures in December 2015 (TCFD). In December 2016 the TCFD has published its recommendations and initiated a consultation in this regard.

The ASCG has contributed to this consultation by completing the online-questionnaire as requested and, additionally, sent a comment letter to the Financial Stability Board. In general, the ASCG agrees with the TCFD’s view that organisations should consider the interactions between corporate activities on the one hand and global climate change and countermeasures on the other hand. However, the proposed disclosures that should be part of financial reporting, according to the TCFD’s recommendations, do not honour the cost/benefit constraints. Furthermore, the ASCG doubts that enhanced transparency by itself will effectively result in a change of organisations’ behaviour towards low-carbon business. For further critics raised by the ASCG please download the comment letter to the Financial Stability Board.