G-20 taskforce issues climate-related disclosure guidelines

A taskforce for the G-20's Financial Stability Board (FSB) has issued its final recommendations on climate-related financial disclosures, giving a nod to different levels of materiality for different companies, and emphasising harmony with countries' own reporting frameworks.

Following a public consultation, the taskforce has retained the bulk of the framework first announced in December 2016.

The voluntary framework recommends that organisations, including fund managers, make disclosures around four themes: the organisation's governance around climate risks and opportunities; actual and potential impact of climate on business, strategy and financial planning; how climate-related risk is managed; and the metrics and targets used.

Following the consultation, the recommendations clarified that disclosure of climate-related strategy and metrics and targets should defer to whether such considerations are material.

However, disclosure of governance and risk management should be provided regardless of materiality.

The taskforce also emphasised that the recommendations were not meant to supersede national disclosure requirements, but to complement or enhance them when possible.