Disclosing an institution’s climate change financial risk exposure

Why? It is increasingly seen as standard practice, may be requested by financial regulators, and provides information to shareholders, clients and counterparties on the institution’s exposure to climate risks.

How? The Taskforce on Climate-related Financial Disclosures provided recommendations and guidance on how to disclose an institution’s climate change financial risk exposure. This has been used by a number of financial institutions to develop and release TCFD reports on a voluntary basis.