The Chartered Professional Accountants of Canada (CPA Canada) are lauding the Task Force on Climate-related Financial Disclosures (TCFD) for providing a foundation for more relevant and globally consistent corporate reporting on climate change issues.
"Establishing a commonly shared understanding of the business language used to describe climate change issues, enables a clearer discussion of the implications for businesses, investors and global financial stability," said Joy Thomas, president and CEO at CPA Canada.
The TCFD was established in 2015 by the Financial Stability Board, an international body that monitors and makes recommendations on the global financial system. The TCFD's recently released final report recommended a set of voluntary and consistent climate-related financial disclosures to be used by companies to assist investors, lenders, and insurance underwriters in understanding factors that could materially affect performance.
CPA Canada has released its own study, which indicated that filings from Canadian public companies on the nature and extend of climate-related disclosures varied greatly. (More on that study is HERE.)
"We have provided input into the climate change disclosure review actively being carried out by Canadian securities regulators and look forward to the findings," said Rosemary McGuire, a director within research, guidance and support at CPA Canada. "Going forward, our organization will engage in further discussions with key stakeholders as we seek to understand the opportunities, challenges and potential benefits of adopting the TCFD recommendations."
To help the boards of directors of organizations in their oversight of climate-related strategy, risk, financial performance and reporting, CPA Canada has published a Climate Change Briefing: Questions for Directors to Ask.
"The briefing is aligned with CPA Canada's championing of the Canadian ideal of good business which values sustainable growth and social development," adds Thomas. "Climate change has real economic and social implications for business. Directors are key players in providing the necessary leadership, tone and oversight of climate-related issues, so it is important they understand the business impacts and governance issues arising from climate change."
A copy of the briefing is available HERE.