The Financial Stability Board (FSB) is currently establishing an industry-led taskforce dedicated to financial risks posed by climate change. Headed by founder of Bloomberg LP, Michael R. Bloomberg, this Task Force on Climate-Related Disclosures (TFCD) is to provide, on free-basis, information to companies such as insurers, investors and lenders.

The TFCD’s objective will be reached in two steps. The first which is to be completed in March 2016 involves 10 people who are to evaluate the size of the task the organization is to accomplish. The second stage will involve 30 people and will lead to the setting up of clear guidelines, principles and if possible good practices to face climate change. This stage which is to be completed at the end of 2016 will help inform general public about climate risks. “FSB hopes that the recommendations from this taskforce will raise awareness of market participants concerning climate risks. Access to high-quality financial information will allow market participants to better manage these risks which will only grow over time. Michael’s experience in the management of climate-change risks as well as that in financial market make him the ideal leader for this taskforce,” said FSB’s President Mark Carney.

“Surely, the talks on Climate change going on in Paris discuss the $100 billion funding to counter climate change but the most important thing really is that there are thousands of billions of dollars already invested to switch from fossil fuels to low-carbon assets. A better dissemination of data of climate risks and carbon exposure is likely to speed up the transition”, said Julian Poulter, CEO of Asset Owner Disclosure Project, an institution specialized in informing about climate-change risks.

Gwladys Johnson