Giving Compass' Take:

• There needs to be more transparency in disclosing climate risk and impact across capital markets, which starts with stakeholders playing a role in improving these processes across corporations and financial institutions. 

• How can donors help encourage stakeholders to spur more transparency on climate risk? How does this impact charitable giving? 

• Read more about what investors should pay attention to in terms of climate change. 

The Task Force on Climate-related Financial Disclosures (TCFD) is helping to bring transparency to climate risk throughout capital markets, with the aim of making markets more efficient and economies more stable and resilient.

Many stakeholders are involved in the initiative, across corporations and financial institutions. Each can apply TCFD reporting intelligence to inform better decisions in different ways.

  1. Finance director: Developing a business case to increase capital expenditure on carbon-mitigation projects 
  2. Purchasing manager: Minimizing supply chain disruption by identifying suppliers vulnerable to physical risks
  3. Sustainability manager: Setting science-based targets for company greenhouse gas (GHG) emissions 
  4. Investor relations manager: Publishing a TCFD-aligned report 
  5.  Portfolio manager: Screening a portfolio for carbon earnings at risk using scenario analysis
  6. Chief investment officer (CIO): Using TCFD-aligned reporting as a way to engage asset managers on climate issues
  7. Risk officer: Assessing exposure to climate-linked credit risk 

Read the full article about transparency in climate risk by Steven Bullock at GreenBiz.