Making climate change financially measurable
— Symrise one of 513 supporters around the globe of the climate change report
— Task Force demands more climate transparency in corporate reports
Symrise is one of the 513 companies all over the world that supports the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) and is thus committed to protecting the global climate. The Task Force has dedicated itself to having companies disclose the financial impact of climate change on their companies in their annual reports. The committee has therefore developed recommendations for action. Symrise, a global manufacturer of fragrances and flavorings, advocates the goals of the initiative and already shares extensive climate data in its annual Corporate Report.
How can you make the impact of climate change on a company’s business activities more transparent? Having considered this question during the 2015 Paris Climate Agreement, the Financial Stability Board founded the TCFD. The criteria it developed were introduced for the first time on September 26, 2018, at the Bloomberg Global Business Forum and One Planet Summit in New York. The TCFD thanked Symrise, among other companies, for its commitment to protecting the global climate.
The idea behind the TCFD is to uncover the risks and opportunities of climate change and identify their impact on companies and financial markets. “It’s more important than ever that companies assume a leadership role. They need to gain a better understanding of risks and respond to them, as well as acknowledge the opportunities they provide. The goal is to develop a strong, resilient and sustainable global economy,” says Michael R. Bloomberg, founder of Bloomberg LP and Task Force Chairman. Their criteria regarding climate-related financial information comprise four topic areas. Companies share information about their governance, the effects on business activities and strategy, and opportunity and risk management, and they pursue their goals based on the key figures provided. The recommendations focus on the opportunities and risks resulting from the transition to a low-carbon economy. The TCFD also recommends explaining the potential effects of climate-related risks based on a variety of scenarios, such as global warming of 2°C.
In the 2018 status report presented, the Task Force assessed the reports of 1,800 companies, most of which already publish climate-related data that conforms with the TCFD recommendations. According to TCFD Chairman Bloomberg, the efforts thus far have paid off: “The more informed companies are about the risks they face, the faster and more effectively they can respond to them. We will gain more supporters and the global economy will become more resilient and invest more in projects designed to help reduce emissions and protect people from harm.”
About the Task Force on Climate-related Financial Disclosure (TCFD)
Founded by the Financial Stability Board (FSB), the TCFD Task Force develops voluntary, consistent climate-related financial risk disclosures for use by companies. This information can then be incorporated into companies’ annual reports and thus made available to creditors, insurance companies, investors and other interest groups. The first status report was presented at the Bloomberg Global Business Forum and One Planet Summit in New York on September 26, 2018.