As communicated before this Task Force on Climate-related Financial Disclosures (TCFD) was formed in December 2015 after the Financial Stability Board's (FSB) highlighted climate change as a risk to the stability of the global financial system. It was commissioned by G20 finance ministers and Central Bank governors who asked the FSB to review how the financial sector can best take account of climate-related issues. It is the first international initiative to examine climate change in a financial stability context. The Task Force is chaired by Michael Bloomberg and comprises experts from around 32 corporations and financial organizations including KPMG.
The Task Force published its first recommendations report in December 2016. The report is open for public consultation February 12, 2017. The Task Force will provide its final recommendations to the FSB in June 2017, after which the FSB is expected to present the recommendations at the G20 summit in July 2017.
The report provides clear recommendations on how organizations should disclose consistent information on the climate-related financial risks they face and the potential impacts. The recommendations are for voluntary disclosures in mainstream financial reports to be used by investors, lenders, insurers and other users of financial data.
KPMG's client briefing explains what the Task Force is, why it has been set up and what the implications are for KPMG member firm clients.