According to a recent report of the Cambridge University, India is not asking its companies to reveal how vulnerable they are to the climate risks.In the study, the Cambridge Institute of Sustainability Leadership (CISL) tried to comprehend on how different countries were applying Task Force on Climate-related Financial Disclosures (TFCD) recommendations and getting companies to disclose climate related risks. The Task Force was set up by Financial Stability Board (FSB) - an international body that is set up by the G20 nations whose goal is to oversee and recommend on global financial systems.
What does the Task Force on Climate-related Financial Disclosures (TFCD) recommends?
Provided that climate change is becoming a business problem along with an environmental problem, the FSB formed the TCFD in December of 2015 to address the effects climate change will have on the companies through disclosure. In June'17, TCFD issued recommendations on helping companies disclose the information to help the financial markets better understand the climate related financial risks and opportunities.Unfortunately, where around two thirds of the G20 countries have become involved with the TCFD and countries such as UK, Canada, Japan, Australia, South Africa are holding consultations with private sector on the requirements for disclosure, India comes at the bottom when it comes to complying with the TCFD recommendations. It is joined by Korea, Russia, Saudi Arabia, Indonesia and Argentina. France is the only one nation to put these recommendations into law.
By: Neha Maheshwari