The United Kingdom has paved the way for companies to report on the future financial impact of climate risks, but the process is far from easy and rates of noncompliance—at least initially—could be high.
From this year, some 1,300 businesses and financial institutions will have to report on a “comply or explain” basis against the financial disclosures recommended by the Task Force on Climate-Related Financial Disclosures (TCFD), an organization that seeks to provide a standardized framework for companies to report on how climate change impacts the bottom line.
