TCFD status report calls for urgent progress on disclosure alignment

The Task Force on Climate-Related Financial Disclosures (TCFD) has published its 2022 Status Report. The report examines the extent to which company disclosures are aligned with TCFD recommendations, of which there are 11. Survey results indicate that overall there has been an improvement in this alignment. However, the data indicates gaps that need to be addressed: “Sixty percent of asset managers and nearly 80% of asset owners indicated they report information aligned with at least one recommended disclosure, whereas only 9% of asset managers and 36% of asset owners report on ten recommended disclosures. None indicated they report on all 11.” There is also geographical variation in TCFD alignment. In Europe, the average level of disclosure across the 11 recommended areas was 60%, while this figure is 36% and 29% for Asia-Pacific and North America respectively. The report contains a critical message: “The Task Force remains concerned that not enough companies are disclosing decision-useful climate-related financial information.”