The Surge in Climate Risk Reporting



The following content is sponsored by the Carbon Streaming Corporation

 

Climate Risk Reporting

The Briefing

  • The Task Force on Climate-related Financial Disclosures (TCFD) provides a global framework for organizations to disclose climate-related risks and opportunities.
  • Since 2018, the number of TCFD supporters has grown five-fold.
  • Over 1,000 financial institutions support the TCFD, representing $194 trillion in assets.

The Surge in Climate Risk Reporting

An average of $2.5 trillion—or 1.8% of global financial assets—would be at risk from climate change if global temperatures rise over 2.5℃ by 2100.

Given that climate change imposes a risk to the world’s assets, reporting on climate-related risks and opportunities is becoming front and center for organizations amid growing pressure from investors and governments.

The Task Force on Climate-related Financial Disclosures (TCFD), created by the Financial Stability Board (FSB) in 2015, provides a global framework for such disclosures. This graphic sponsored by Carbon Streaming Corporation charts the rapid growth in support for climate risk reporting under the TCFD framework.

The Support for Climate-related Disclosures

The number of organizations supporting TCFD has grown five-fold in just three years, at an average annual rate of 73%.

YearNumber of TCFD SupportersCombined Market Capitalization
2018513$8T
2019785$9T
20201,512$13T
20212,616$25T

As of 2021, over 2,600 organizations supported the TCFD framework, with a combined market capitalization of $25 trillion. These organizations span 89 different countries and jurisdictions, highlighting the global support for climate risk reporting.

Additionally, 1,069 or nearly 41% of (Read more...)