Most of our banks and the companies that manage our money (our pension funds and insurance premiums), recognise the threat of climate change. But recognising the threat is not enough. We need a real shift in the way they do business.
As a first step, they need to be more transparent about where they are lending and investing our money.
Recommendations have been drawn up by a task force of senior executives from some of the world’s largest private banks and investment firms. They call for companies to be more transparent about the impacts of their loans and investments on the climate.
Admittedly, the recommendations aren’t perfect but if adopted would be a great step forwards.
We want all the major banks and investment firms to:
- publicly commit to fully implement the TCFD recommendations
- provide a clear timeline for doing this.
For the future of communities across the world already hit hard by climate change and for the sake of future financial stability, our banks and investment firms must act now.
What is the TCFD?
In December 2015, the Financial Stability Board, an international body that makes recommendations about the global financial system, established the Task Force on Climate-related Financial Disclosures (TCFD).
The TCFD ensures that private companies, including banks and investment companies, are more transparent about the impact of their businesses on the climate.