What next for the TCFD recommendations? An interview with Russell Picot

by Carol Adams

Main points:

  • Support for disclosures being made mandatory
  • Mark Carney established the TCFD to price climate change risks into capital markets
  • Ignoring climate change risks presents risks to the financial system
  • Speed of achieving outputs was a critical factor in determining structure of the TCFD
  • Oil and gas sector leading in use of scenario analysis

In this short video, Russell Picot, special advisor to the Financial Stability Board’s Taskforce on Climate related Financial Disclosure (TCFD), talks to me about what next for the TCFD disclosures.

In addition to his role with the TCFD, Russell is chair of the Trustees of HSBC’s pension fund and set out the fund’s response to climate change in a letter to the Chair of the UK parliament’s Environmental Audit Committee discussed here.

The TCFD recommendations have been referenced in recent regulatory developments in corporate reporting, governance and stewardship.  These include the Australian Securities Exchange (ASX) Corporate Governance Principles, the UK Financial Reporting Council Stewardship Code consultation and the UK Parliament’s Green Finance Inquiry.  Standard setting organisations such as the Climate Disclosure Standards Board (CDSB) and Global Reporting Initiative (GRI) are aligning their Frameworks to the CDSB.  His Royal Highness, the Prince of Wales and his Accounting for Sustainability project are helping the accounting and finance profession address them.

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