Earlier this year, the Task Force on Climate Related Financial Disclosures (TCFD) firmly acknowledged that climate change is a material risk to the performance of companies and a systemic risk to the financial sector. The recommendations by the group, which may well form the basis of regulation for financial institutions in many G20 countries, identify a series of climate-related risks, including physical risks, which are considered to have material impact on financial performance. It saddens me that this is now the standard business case for environmental risk management. The TCFD is not very enlightened when it comes to ecosystem degradation, focusing mainly on climate adaptation costs. In the future I would prefer science-based ecosystem risk based business case, as this can steer people in the wrong direction (for us).

 

Posted by Stuart Singleton-White on 27th November 2017 at 12:00am

Category: News, Insight