TCFD: Regulators Take a Varied Approach

According to a MSCI ESG Research, financial regulators in at least 10 major economies are slated to start introducing TCFD-aligned (Task Force on Climate-related Financial Disclosures) disclosure rules for companies and financial institutions. On one hand, the global push to standardize climate-risk reporting can be seen through the rise of corporate decarbonization commitments. On the other hand, there is a perception that national financial regulators differ in their proposed requirements for the information that companies would be required to disclose and the scope of firms required to do so. This means that investors should pay attention on the comparability and uniformity of data across companies they might be interested in. There is one commonality sofar: that companies will be increasingly required to disclose forward-looking metrics so investors can assess their capacity to transition. Click to read more.