Karl Schultz has just published the latest of Adaptation Leader’s commentaries, taking on climate-related financial disclosures and that framework’s ability to progress corporate climate adaptation planning on GreenBiz.com titled: TCFD: A Catalyst for Transformational Climate Adaptation?
The Task Force on Climate Related Disclosures (TCFD), offers a framework for disclosure of climate risks. However, TCFD recommendations lack the specificity and enforcement mechanisms needed to induce broad scale changes in corporate disclosure. Meaningful climate risk disclosure must address both the sources of climate risk to the reporting entity and the actions it intends to take in response. In this commentary, we suggest an increased emphasis on physical climate risk in disclosures, and further encouragement of strategy resilience through climate adaptation as precipitated by these same disclosures. Indirectly, we see TCFD as an important component of a framework, perhaps kickstarted by the fiduciary and reputational risk discovered through disclosure, that develops within and outside of corporations and ultimately works to enable corporate climate adaptation planning.