Banks have found themselves at the very center of the climate challenge. As enablers of capital, banks play a critical role to help mitigate the impact of climate change and build the infrastructure required for a future lower-carbon economy.
Banks are under mounting pressure from their stakeholders and regulators to report openly and credibly on their climate progress. Internationally, over the last few years, climate issues have gained more focus and policy momentum within the financial services industry and are increasingly aligned with TCFD, for example US SEC Climate Disclosure regulation and UK’s climate-related reporting regulations.
Disclosing in line with TCFD has many benefits, not only does it build standardization into reporting but provides a framework from which banks can build their climate response. What gets measured gets managed, therefore TCFD reports tend to reflect actual maturity in ESG strategy and execution, so are a good proxy for progress on the sustainability agenda.
Every year, Accenture analyzes the public disclosures of banks worldwide. We report on the number of organizations that have endorsed the TCFD framework as well as their maturity in reporting across the Task Force’s 11 recommendations. We identify the key challenges that banks have encountered and suggest steps they should consider and best practices they might emulate.
The encouraging conclusion of our 2022 report is that a growing number of banks are adopting the TCFD framework and the maturity of their disclosures is improving steadily.