Support for the Taskforce on Climate-related Financial Disclosures (TCFD) has more than doubled since the end of 2017, with the total number of organisations backing the initiative growing from 237 to 513.
That is according to a status report published today by the TCFD, which shows that financial firms responsible for nearly $100trn (£76trn) in assets have now given it their backing.
A total of 457 companies with a combined market capitalisation of $7.9trn now support climate-related disclosures, as well as 56 other organisations, including governments, regulators and trade associations.
TCFD chair, Michael Bloomberg, said: “The more companies know about the risks they face, the more effectively they can address them – and the more they report that information, the better equipped investors will be to make smart decisions.
“It is encouraging to see the task force's group of supporters continue to grow. It will make the global economy more resilient and drive more capital to projects that are helping to reduce emissions and protect people from harm.”
Established by the Financial Stability Board in late 2015, the TCFD provides recommendations on climate-related information that companies should disclose to help investors, lenders, and others make sound financial decisions.
This is intended to drive investment towards companies that will help facilitate a smooth transition to a low-carbon economy, with some of the world’s largest businesses now on board.
The latest status report also includes a review of nearly 1,800 firms’ disclosures, finding that the majority have reported information aligned with parts of the TCFD’s recommendations.
However, disclosure is still most prevalent in sustainability reports rather than financial ones, as recommended by the TCFD.
“Companies are on the right track with disclosing climate-related information, but further work needs to be done,” said special advisor to the TCFD chair, Mary Shapiro.
“It is a learning process and organisations' disclosures will improve and evolve over time. We are looking forward to seeing more climate-related disclosures in 2019 for the 2018 fiscal year reporting cycle.”
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