Royal Dutch Shell Plc (Shell) says it welcomes the final recommendations set out in a report published Thursday by the Task Force on Climate-Related Financial Disclosures (TCFD).
The TCFD is a global initiative chaired by Michael Bloomberg to get companies across all sectors to assess more clearly and disclose more transparently both the risks and the opportunities presented by climate change. It was set up at the prompting of the G20 and the Financial Stability Board (FSB).
“I agree that companies should be clear about how they plan to be resilient in the face of climate change and energy transition. I believe it is right that it should be transparent which companies are truly on firm foundations over the long-term. I applaud the task force for its work to achieve this aim and I have signed a letter confirming Shell’s support for the initiative.
“The details matter and I look forward to Shell working with the task force on those details. Specifically, how we present forward-looking information in an uncertain world, the disclosure of commercially sensitive data and the feasibility of providing the suggested detail to the standard required of financial filings. Ultimately, however, both Shell and the task force want these disclosures to be fit for purpose,” said Shell CEO Ben van Beurden.
Commenting on Shell’s support for the initiative, Governor of the Bank of England and FSB Chair, Mark Carney said: “The task force’s recommendations have been developed by the market for the market. They set out the disclosures that a wide range of users and preparers of corporate information have said are essential to understanding a company’s climate-related risks and opportunities.
“Widespread adoption will provide investors, banks and insurers with that information, helping minimise the risk that market adjustments to climate change will be incomplete, late and potentially destabilising. I am delighted that Shell is supporting the recommendations and that in so doing, it will bring its considerable expertise to work with the task force to build on, and refine their recommendations over time.”
