A task force of the Basel, Switzerland-based Financial Stability Board has issued a status update on its efforts to develop voluntary financial disclosures related to climate change, which could affect banks both as preparers and as users of public disclosures.
The Task Force on Climate-Related Disclosures found that most companies it reviewed disclosed some climate-related information, but that few disclose the potential financial effects of climate change or the resilience of their strategies should global average temperatures increase by two degrees Celsius. The report also found that disclosures vary across industries and regions and are often made in multiple reports.
Six of the eight U.S.-based global systemically important banks have expressed their support for the task force’s work, the report said. While the recommendations have not been formulated into regulatory standards or requirements by U.S. regulators, ABA staff will continue to monitor developments on this issue in the U.S. For more information, contact ABA’s Mike Gullette.