Companies are likely to improve their disclosure of climate-related financial risks in the near future  following the creation of the an industry led task force formed by the Financial Stability Board (FSB) to develop consistent rules for firms when they provide this information to lenders, insurers, investors and other stakeholders.

The task force will be chaired by Michael R. Bloomberg. Speaking at the recent COP21 UN Climate Change Conference in Paris Mark Carney, FSB Chair and Governor of the Bank of England, said “The FSB is asking the Task Force on Climate-related Financial Disclosures to make recommendations for consistent company disclosures that will help financial market participants understand their climate-related risks. Access to high quality financial information will allow market participants and policymakers to understand and better manage those risks, which are likely to grow with time. Michael’s experience working on climate change issues, his unparalleled track record of execution in a broad range of fields and his lifelong commitment to open and transparent financial markets make him the ideal leader for the task force.”

Initially the task force will have around 10 members who, by the end of March 2016, will have determined the scope and high-level objectives for its work. Following this the task force will be expanded to up to 30 members who will focus  on delivering specific recommendations for voluntary disclosure principles and leading practices. It is hoped that this work will be completed by the end of the year. The task force will undertake public engagement and consultation during the course of this work.

The task force will include senior technical experts from firms that are the preparers and users of company risk disclosures, as well as risk analysts. The members of the Task Force will be private-sector individuals drawn from financial and non-financial companies across a broad range of countries within the FSB’s membership.

This work by the FSB follows requests by G20 governments and  Central Bank Governors to engage with the public and private sector to review how the financial sector can take account of climate-related issues.