In the three years since the release of the Taskforce on Climate-related Financial Disclosures (TCFD), corporates and financial institutions have made limited progress in their efforts to enhance the breadth and depth of their climate-related disclosures. To address this challenge, the Institute of International Finance (IIF) and the United Nations Environment Programme Finance Initiative (UNEP FI), with the support of EY, conducted a joint effort to support banks and other financial institutions in their efforts to strengthen climate risk disclosures.
After engaging with a group of global banks that are members of the IIF's Sustainable Finance Working Group (SFWG) and UNEP FI's TCFD pilot program, we have developed this TCFD Playbook to serve as a resource for firms at different stages on their journey toward fully aligned and comprehensive TCFD reporting. While focused primarily on the banking sector, this document contains information that is relevant for all financial institutions, including asset managers and insurers.
This document is a first step toward the development of standardized templates for TCFD disclosures by financial institutions. Based on the insights we have gathered, it is evident that such templates are urgently needed to guide the alignment of disclosures. Our future work will focus on finding ways to better align disclosures in areas where divergence in practices, approaches and metrics persists - with a core aim of harmonizing delivery of quantitative data in a consistent format. By bringing greater transparency on the approaches, data inputs, and variables used to quantify and measure such risks, we hope that financial institutions will be able to collaboratively raise the bar for what good disclosure looks like.