TCFD Status Report Shows Notable Increases in Climate Disclosure

A 2022 Status Report released by the Task Force on Climate-Related Financial Disclosure (TCFD) highlights a significant increase in the number of companies reporting on climate-related risks and the amount of information they are providing. The report included the results of a study that used artificial intelligence to examine over 1,400 company financial reports which showed that 80% of companies in 2021 provided disclosures in line with at least one of the TCFD’s 11 recommendations. Investor demand continues to be a key driver for disclosure and 85% reported that climate-related issues are material for their companies. While there was a notable increase in disclosure, particularly among banks and insurance companies, the report highlighted the need for continued improvement.

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