We are carrying out a major work on reg-track.com website. The system is still fully functional
and will be back to reg-track.com very soon.
UK BoE Net Zero Transition Speech
On Oct. 8, UK BoE Governor spoke on helping achieve net zero.
Mark Carney spoke at Tokyo task force on climate-related financial disclosures (TCFD).
For sustainable finance, industry must transition to net zero (neutral carbon footprint).
He believes that those businesses that realign their business models towards net zero will be rewarded handsomely, but the businesses that fail to adapt will cease to exist.
The longer that meaningful adjustment is delayed, the greater the disruption will be.
Demand for TCFD disclosures is enormous, and the supply of disclosure is responding.
Four fifths of top 1,100 global companies, now disclose climate-related financial risks.
Markets need information to assess which companies can seize the opportunities in a low carbon economy, and which are strategically resilient to the climate change risks.
TCFD should share best practice to increase quantity and quality of climate disclosures.
Private Sector Roles
Three quarters of banks in UK are starting to treat risks from climate change like any other financial risk, rather than simply as an issue of corporate social responsibility.
Private sector has made progress on reporting, risk management but more is required.
Companies, banks, insurers, investors must increase quantity, quality of disclosures.
They must also refine disclosure metrics to determine which are most decision-useful; as well as spread knowledge on how to assess strategic resilience; and also consider how to disclose the extent to which portfolios are ready for the transition to net zero.
What Can TCFD Do
TCFD must work to increase quantity, quality of disclosures, by sharing best practice.
Their disclosure recommendations should be refined to those most decision-useful.
Develop practice, spreading knowledge on how to measure, use resilience information.
Consider how asset owners could disclose how portfolios are positioned for transition.
UK BoE; UK PRA
Auditor; Bank; BS; CRA; Ins; Inv Co; Pension
SP, 10/8/2019; ESG
Accounting; Financial; Operations; Risk; Treasury
Banking; Commodities; Corporate; Fund Mgt; Insurance; Pensions