Governance |
A Boost for Climate Change Reporting
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The issue of whether companies should disclose climate change-related information in financial statements received an affirmative boost from a subcommittee of the Commodity Futures Trading Commission (CFTC).
Its Market Risk Advisory Committee issued a report on September 9, 2020, that heavily references the Task Force on Climate-related Financial Disclosures (TCFD). The report concludes that current disclosure by U.S. companies is inadequate—in no small part because of what might be a cramped interpretation of the concept of “materiality.” It recommends that the U.S. Securities & Exchange Commission (SEC) update its 2010 guidance on climate risk disclosure and impose specific climate change-related disclosure requirements on public companies.
