A new update on what the Task Force on Climate-Related Financial Disclosures (TCFD) report means for the oil and gas sector.
The impact of climate-related risks on a company are becoming a prominent feature of public discourse. Importantly for CEOs, investors are regularly embedding environmental, social and governance risk into their screening criteria.
In the oil and gas sector, several companies have been challenged on their response to climate-related risks by prominent shareholders. Building on this, it was revealed that shareholders are suing Commonwealth Bank of Australia for what they say is a failure to properly disclose the risks to the business posed by climate change; the first case anywhere in the world to test how companies are required to disclose climate-related risks in court.
The Task Force developed four widely-adoptable recommendations to help companies understand climate-related risk and the impact on financial disclosures:
We summarise what this means for oil and gas companies in the Task Force on Climate-Related Financial Disclosures (TCFD) report update.