The Financial Stability Board (FSB) welcomed the publication this week of the final report by the industry-led Task Force on Climate-related Financial Disclosures (TCFD) which included recommendations for effective disclosure of climate-related financial risks. Over 100 company bosses with a combined market cap of around $3.5tn and financial institutions responsible for assets of about $25tn also gave their public commitment to support the recommendations of the TCFD.

In the public statement, the heads of the companies also urged other companies to support the initiative. They stated: "We encourage other business leaders to join us in this united effort to improve disclosure across sectors and regions. The Task Force’s recommendations will catalyse more consistent, comparable, and reliable disclosure of climate-related information that will facilitate more informed business and investment decision-making."

The TCFD was established by the FSB in December 2015 and is chaired by Michael Bloomberg. It was tasked with developing a set of voluntary, consistent disclosure recommendations for use by companies in providing information to investors, lenders and insurance underwriters about their climate-related financial risks. The TCFD produced the first set of recommendations in December last year and this final report follows a public consultation.

The Task Force’s recommendations are structured around four thematic areas that represent core elements of how companies operate: governance, strategy, risk management, and metrics and targets. The TCFD said that these areas reflected the type of information investors expressed that they need to make better, more informed decisions. The Task Force also developed guidance to assist companies in developing their disclosures to meet those needs.

Bloomberg said: "Climate change presents global markets with risks and opportunities that cannot be ignored, which is why a framework around climate-related disclosures is so important. The Task Force brings that framework to the table, helping investors evaluate the potential risks and rewards of a transition to a lower carbon economy. We're pleased to see so many businesses and investors around the world support the recommendations of the TCFD and hope others will be encouraged to join our initiative."