The Task Force on Climate-Related Financial Disclosures (TCFD) was set up in 2015 by the Financial Stability Board (FSB) to develop voluntary, consistent climate-related financial risk disclosures for use by companies, banks, and investors in providing information to stakeholders. Increasing the amount of reliable information on financial institutions’ exposure to climate-related risks and opportunities will strengthen the stability of the financial system, contribute to greater understanding of climate risks and facilitate financing the transition to a more stable and sustainable economy.
Following the publication of the final recommendations by FSB’s TCFD in June 2017, UNEP FI began a journey of convening ‘TCFD Pilot Projects’; groups unique to Banks, Investors and Insurers in its membership. UNEP FI Pilot Projects not only welcomed the recommendations, but also declared their intention to jointly pioneer practical approaches to implement this ground-breaking, forward-looking framework.
UNEP FI together with sixteen of the world’s leading banks launched the UNEP FI TCFD Pilot Project for Banks. The Group worked together with UNEP FI to develop and pilot analytical tools and indicators to strengthen their assessment and disclosure of climate-related risks and opportunities, culminating in the release of two comprehensive reports on the implementation of the FSB’s TCFD recommendations for transition risks:
Navigating a New Climate: Assessing Credit Risk and Opportunity in a Changing Climate – Report assesses Physical Risk and Opportunities
Extending our Horizons: Assessing Credit Risk and Opportunity in a Changing Climate– Report assesses Transition (Policy) Risk
A second phase of the UNEP FI Banking Pilot is expected Spring 2019. Contact Kai.Fisher@un.org to get involved.
UNEP FI together with twenty of the world’s leading asset managers and owners launched the UNEP FI TCFD Pilot Project for Investors. Investors joined UNEP FI’s pilot project to implement the recommendations of the TCFD. The pilot developed scenarios, models, metrics and, ultimately, a risk assessment tool that will enable investors to assess climate risk across their portfolio.
The report can be accessed here.
A companion report on the methodology and results from investors with direct real estate equity exposure was also produced and can be accessed here.
UNEP FI together with sixteen of the world’s leading insurance companies will launch the UNEP FI TCFD Pilot Project for Insurers. Insurers are joining UNEP FI’s pilot project to implement the recommendations of the TCFD and assess risks on their life and non-life businesses.
Task Force on Climate-related Financial Disclosures
Read more on the TCFD Website
UNEP FI Inputs to the Task Force on Climate-related Financial Disclosures:
Presentation by Eric Usher, Acting Head of UNEP FI, February 9th, 2016
Facilitating the flows and integration of climate information for a smooth but determined transition to the new climate economy.
Leading Insurance Supervisors support adoption of Climate Disclosure Recommendations
UN Environment News, July 25th, 2017
The Sustainable Insurance Forum (SIF) – a global network of insurance supervisors and regulators working together to strengthen their response to relevant sustainability challenges – has released a statement welcoming the recommendations and guidance of the Financial Stability Board (FSB) Task Force on Climate-related Financial Disclosures (TCFD).
For more information on TCFD related initiatives contact firstname.lastname@example.org.