Last week, Friends Fiduciary and other investors with total assets under management of $1.8 trillion sent letters to over 60 of the world’s largest banks asking them to disclose to investors their assessment of climate-related risks and opportunities, as well as how those risks and opportunities are being managed at senior levels.
The recently released recommendations by the Task Force on Climate-related Financial Disclosures (TCFD) provide a framework with which financial institutions can examine their portfolios for climate-related risks and opportunities and disclose material information to investors. In line with the TCFD recommendations, investors requested information related to “strategy and implementation, risk assessment and management, [investment in] low-carbon products and services, and [potential for] policy engagements and collaboration with other actors.”
As an investor, Friends Fiduciary believes that assessment of climate risks and opportunities in business operations is essential to effective strategy development. Such forward looking planning is in the best interests of the company and is important for long-term value creation for investors.
Read the press release here.