Member: Society Free
IIRC: Responding to the Financial Stability Board Task Force on Climate
IIRC: Responding to the Financial Stability Board Task Force on Climate-related Financial Disclosure recommendations
The IIRC welcomes the recommendation that companies should 'integrate' their risk management in the face of the threat of climate change, made in the report from the FSB Task Force on Climate-related Financial Disclosures, which was launched in December 2016. The IIRC believes that genuine action to combat climate change can only be achieved by extending the disclosure horizon.
We are committed to supporting efforts to align the Task Force recommendations with existing attempts to improve corporate governance by extending accountability for the management of multiple, interconnected resources and relationships. The implementation of these recommendations should lead to a fundamental realignment of corporate and investment behaviours and decision-making, as well as acting as a catalyst for a more cohesive and aligned corporate reporting system.
The IIRC will be responding to the recommendations setting out five key points:
- Inclusion in mainstream financial disclosures
- Greater emphasis on value-creation as well as financial risk
- Effective risk management
- Alignment of the corporate reporting landscape
- The offer of the IIRC movement to support implementation.
Further details of the IIRC's response is available via the IIRC website.
The IIRC is working as a participant of the Corporate Reporting Dialogue - which brings together the eight leading standard setters and framework developers globally - to submit a joint response to the recommendations. This is in keeping with the Task Force's encouragement of reporting organizations to "support adoption of the recommendations and alignment with the recommended disclosures."