# Companies’ climate disclosures still lacking -task force Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-10-14 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Regulators urge companies to improve climate-related Meta Description: Global regulators report that around half of companies are beginning to adopt climate-related disclosure standards, but more progress is needed. URL: https://financedigest.com/companies-climate-disclosures-still-lacking-task-forcehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-10-14t114929z2lynxmpeh9d0oortroptp4britain-emissions-1736837563892-compressed.jpg) By Huw Jones and Simon Jessop LONDON (Reuters) -Around half of companies assessed have begun to apply globally-agreed climate-related disclosure standards for helping investors to pick firms committed to sustainability, regulators said on Thursday. A task force set up by the Financial Stability Board – which groups regulators, central banks and treasury officials from G20 countries – set out recommendations in 2017 on how companies could voluntarily disclose the risks and opportunities from climate change. But four years on, only about half of companies disclosed climate-related risks and opportunities in some form, on average covering around a third of the 11 recommended disclosures, the [Task Force](https://www.financedigest.com/britain-says-it-is-committed-to-leading-a-nato-task-force-in-2024.html "Britain says it is committed to leading a NATO task force in 2024") on Climate-related Financial Disclosures (TCFD) said in an update published on Thursday. Significant progress is still needed, the [report said after a recent review of more than 1,600 companies](https://www.financedigest.com/the-last-mile-of-statutory-reporting-is-absolutely-crucial-heres-how-one-global-company-does-it-with-onesource.html "The last mile of statutory reporting is absolutely crucial. Here’s how one global company does it with ONESOURCE") around the world. There is clear and [growing consensus among investors and regulators on the importance](https://www.financedigest.com/factbox-europe-ramps-up-coal-imports-as-energy-supply-fears-grow.html "Factbox-Europe ramps up coal imports as energy supply fears grow") of climate-related disclosure and the need for standardised, transparent data to support capital allocation decisions,” said Mary Schapiro, head of the TCFD. Regulators are worried that companies touting their “green credentials” to [attract investors’](https://www.financedigest.com/5-ways-that-start-ups-can-attract-investors.html "5 Ways That Start-Ups Can Attract Investors") cash may be making exaggerated claims about their commitment to sustainability – something known as “greenwashing. The task [force said more than 2,600 organisations have expressed](https://www.financedigest.com/american-express-and-rambus-join-forces-on-secure-global-e-commerce-tokenization.html "American Express and Rambus Join Forces on Secure Global E-commerce Tokenization") their support for its recommendations, an increase of more than a third since the 2020. They include 1,069 [financial institutions](https://www.financedigest.com/what-financial-institutions-will-be-like-in-10-years.html "What Financial Institutions Will Be Like In 10 Years") responsible for assets of $194 trillion. To improve uptake, regulators in markets such as Britain, the European Union, Brazil, [Hong Kong](https://www.financedigest.com/screening-of-winnie-the-pooh-horror-film-cancelled-in-hong-kong.html "Screening of ‘Winnie the Pooh’ horror film cancelled in Hong Kong"), Japan, New Zealand, Singapore and Switzerland have begun using the recommendations as a basis for mandatory disclosures. The recommendations are part of a patchwork of disclosure rules that have emerged, prompting regulators to intervene in a bid to impose a more unified, [global approach](https://www.financedigest.com/multinational-companies-trending-away-from-one-size-fits-all-approach-to-global-long-term-incentives.html "Multinational Companies Trending Away From One-Size-Fits-All Approach to Global Long-Term Incentives"). The IFRS Foundation is set to create an International Sustainability Standards Board (ISSB) in the run up to next month’s COP26 [climate change conference](https://www.financedigest.com/one-minute-to-midnight-says-johnson-as-climate-conference-opens.html "“One minute to midnight” says Johnson as climate conference opens") in Glasgow. The ISSB, backed by leading countries, will build on the task force’s recommendations to [create “baseline” disclosure standards](https://www.financedigest.com/the-gibraltar-blockchain-exchange-announces-public-token-sale-event-to-create-world-leading-licensing-and-regulation-standards-in-the-industry.html "The Gibraltar Blockchain Exchange Announces Public Token Sale Event To Create World Leading Licensing and Regulation Standards In The Industry") by mid-2022 which supporting countries will make mandatory. The FSB welcomes the continued [progress the IFRS Foundation is making on its initiative to develop a global](https://www.financedigest.com/global-economic-crisis-strangling-progress-for-poor-warns-u-n-development-chief.html "Global economic crisis strangling progress for poor, warns U.N. development chief") sustainability reporting standard, beginning with climate,” the FSB said in a statement. (Editing by Jane Merriman and Susan Fenton) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---