Climate change is rapidly emerging as a threat to the stability of our financial systems.
More frequent and severe weather events are damaging infrastructure and disrupting supply chains. Transition to a lower carbon economy is bringing new policies, regulations and rapid changes to market dynamics. Some carbon-intensive companies are already facing lawsuits over their contributions to climate change.
Together these trends threaten to bring serious financial risks to companies and their investors, lenders and insurers.
That's why, in 2015, the Financial Stability Board (FSB) formed the Task Force on Climate-related Financial Disclosures (TCFD) and asked it to recommend how companies should disclose their material climate-related risks to financial stakeholders.
Since then, many banks, pension funds, asset managers, insurers and others have put growing pressure on companies to apply the TCFD recommendations and hundreds of companies have signed up to do so.
For most companies, assessing, disclosing and responding to climate-risk is a new challenge. KPMG professionals can help. KPMG can support clients in by making sense of the TCFD recommendations. We, and work shoulder-to-shoulder with you to identify climate-related risks and opportunities, understand the financial implications, and incorporate relevant disclosures into financial filings.
KPMG can provide bespoke services to help clients address climate-related financial risks. Our support covers the following areas: