- Climate change presents material risks to companies.
- Accountants have a key role to play in adopting the TCFD recommendations and facilitating more informed business & investment decision-making.
- Rick Ellis, CEO of Chartered Accountants ANZ has shown his support for the recommendations by signing the TCFD Statement of Support
Rick Ellis our Chief Executive Officer has signed the Accounting Bodies Statement of Support for the recommendations of the FSB Task Force on Climate-related Financial Disclosures (TCFD), in collaboration with The Prince of Wales's Accounting for Sustainability Project (A4S).
By signing this Statement of Support with 12 other CEOs of accounting bodies across the globe, we commit to working together with other accounting body CEOs and other business leaders to support all our members, representing 2,392,947 accountants in 181 countries, to adopt the TCFD recommendations.
Why is this important?
Climate change is one of the biggest social and economic risks the world faces today, and companies and investors are already being affected by the transition to a low carbon economy and the physical impacts of climate change. The TCFD recommendations provide a framework for disclosing climate related risks and opportunities, going beyond current practices in two significant ways:
- Inclusion in mainstream financial filings; and
- Using scenario analysis to inform business strategy.
The role of accounting bodies
We, as accounting bodies, have an important role to play in ensuring transparency and appropriate disclosure around climate related risks and opportunities, which in turn will help to maintain financial stability. Chartered Accountants ANZ support the work of the TCFD and will work with other accounting bodies to share knowledge and best practice in adopting the TCFD recommendations.
The Accounting Bodies Statement of Support, led by The Accounting Bodies Network (ABN), was launched at A4S's annual Summit, 15th – 17th November 2017, alongside two additional Statements of Support signed by CFOs and Chairs of Pension Funds, underlining the need for collective action by all parts of the finance community.
What is Accounting for Sustainability?
The Prince's Accounting for Sustainability Project (A4S) was established by HRH The Prince of Wales in 2004. A4S convenes senior leaders from across the finance world – in business, the capital markets, governments, regulators and education – to inspire action to drive a fundamental shift towards resilient business models and a sustainable economy.
The Accounting Bodies Network, set up in 2008, is a group of accounting bodies from across the globe, brought together to help achieve a common approach to accounting for sustainability. Chartered Accountants ANZ have been a member of the network since its inception.
Accounting for sustainability TCFD support
Climate change is one of the biggest social and economic risks the world faces today.Read more
The Financial Stability Board Taskforce on Climate Related Financial disclosures
The Task Force on Climate-related Financial Disclosures (TCFD) will develop voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers, and other stakeholders.Read more