MAS, top S'pore firms join drive for more transparency on climate-related biz risks
Singapore
LOCAL firms Singtel, DBS and City Developments Limited are among 237 international companies that are supporting more transparency on climate-related risks for businesses in line with the two-year anniversary of the Paris Agreement.
On Tuesday, the Task Force on Climate-related Financial Disclosures (TCFD) announced that these companies, with a combined market capitalisation of over US$6.3 trillion, have committed to support the initiative.
Other Singapore firms joining in include the Singapore Exchange and Olam International Limited, along with Singapore's central bank, the Monetary Authority of Singapore.
The Task Force, led by Bloomberg's CEO Michael Bloomberg and established by the Financial Stability Board (FSB) chaired by Bank of England governor Mark Carney, developed recommendations on climate-related information that companies should disclose to help investors, lenders, and others to make sound financial decisions.
The companies and organisations supporting the TCFD, which have more than doubled in number in the five months since the recommendations were published in June 2017, span the whole capital and investment chain.
These range from companies that issue equity and debt to the largest credit rating agencies, to stock exchanges, and ultimately to investors who buy equities and debt.
"There is increasing demand for transparency on climate-related risks and opportunities from investors, and the Task Force's recommendations provide a framework for companies to respond," the TCFD said.
Supporting companies come from a range of industries including construction, consumer goods, energy, metals & mining, and transport.
Mr Bloomberg, chair of the Task Force, said: "Climate change poses both economic risks and opportunities. But right now, companies don't have the data they need to accurately measure the risks and evaluate the opportunities. That prevents them from taking protective measures and identifying sustainable investments that could have strong returns."
FSB chair Mr Carney added that markets need the "right information to seize the opportunities and mitigate the risks" that are being created by the transition to a low carbon economy. "By this time next year, and in time for the Argentine G-20 Summit, the Task Force will report on implementation experience, including examples of good practices to support and foster wider adoption," he said.
READ MORE: 237 companies to put pressure on major greenhouse gas emitters
