Recommendations of the Task Force on Climate-related Financial Disclosures

This report outlines recommendations from the Financial Stability Board's industry-led Task Force on Climate-related Financial Disclosures (Task Force) for disclosing clear, comparable and consistent information about the risks and opportunities presented by climate change. The Task Force’s recommendations apply to financial-sector organizations, including banks, insurance companies, asset managers, and asset owners. These recommendations aim to ensure that the effects of climate change become routinely considered in business and investment decisions. The recommendations pertain to issues of institutional transparency, including governance structures and risk management practices, as well as the potential impact of climate change on financial institutions.

The Task Force structured its recommendations around four thematic areas that represent core elements of how organizations operate: governance, strategy, risk management, and metrics and targets. The four overarching recommendations are supported by recommended disclosures that build out the framework with information that will help investors and others understand how reporting organizations assess climate-related risks and opportunities. In addition, there is guidance to support all organizations in developing climate-related financial disclosures consistent with the recommendations and recommended disclosures. The guidance assists preparers by providing context and suggestions for implementing the recommended disclosures. For the financial sector and certain non-financial sectors, supplemental guidance was developed to highlight important sector-specific considerations and provide a fuller picture of potential climate-related financial impacts in those sectors.