The Investing and Saving Alliance (TISA) has published a guide to Taskforce on Climate-related Financial Disclosures (TCFD) which will aid financial service providers in ESG disclosures, ultimately helping to improve the price of climate-related risks and lead to more informed capital allocation decisions.
The UK government has announced it will ensure the country becomes the first in the world to make TCFD-aligned disclosures mandatory across the whole economy by 2025.
TCFD is already mandatory for premium-listed issuers and is expected to apply to all UK listed companies over time. TISA’s guide – Good Practice Guide to TCFD – will serve as an invaluable tool for these providers to navigate reporting as the requirements increase over time, the firm announced.
Jeffrey Mushens, technical policy director at TISA, said: “Financial services providers are increasingly aware of their responsibilities to prove their sustainability and ESG credentials. Consumers are ever more conscientious about where their money is invested and how ethical and sustainable the products and services are that they use.”
He acknowledged that ESG ratings are only effective if they are consistent and comparable, adding that “reporting can be complicated for financial services providers, so we hope that this guide can help explain exactly what is required of them”.
Gemma Woodward, head of responsible investment at Quilter Cheviot and deputy chair for TISA’s responsible and sustainable investment committee, said: “TCFD is an important set of requirements that businesses will need to dedicate time and resource to, so we are pleased to have produced this guide to help smaller firms in achieving this.”
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