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A Boost for Climate Change Reporting

By Stephen Barlas
December 1, 2020

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.

 

Stephen Barlas has covered Washington, D.C., for trade and professional magazines since 1981 and since 1984 for Strategic Finance and its predecessor Management Accounting. You can reach him at sbarlas@verizon.net.
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