New Delhi: Tata Steel today extended its support to the recommendations of the global task force on climate-related financial disclosures.
The task force, established by the Financial Stability Board (FSB) in 2015, has recommended a framework to help businesses and investors evaluate potential risks and opportunities of a transition to a lower carbon economy.
The recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) are also aimed at bringing future nature of issues into the present through scenario planning which will in turn ensure tighter investors engagement and meet stakeholders' expectations.
"TV Narendran, MD Tata Steel India & SEA (South East Asian Operations) joined over 100 other business leaders and companies to publicly commit their support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)," Tata Steel said in a statement.
The TCFD released its final report recommendations of the task force on climate-related financial disclosures and supporting materials - on June 29, 2017.
Tata Steel Group as an institution is committed to supporting the TCFD's voluntary recommendations as these disclosures are an important step forward in enabling market forces to drive efficient allocation of capital and support a smooth transition to a low-carbon economy, the statement said.
"As a growing number of investors demand more information around how companies are addressing the effects of climate change, it is imperative to recognise the importance of disclosing climate-related risks and opportunities," it said.
Adopting the TCFD recommendations is an important step forward in enabling market forces to drive efficient allocation of capital and support a smooth transition to a low-carbon economy, it added.
Expressing his views, Koushik Chatterjee, Group Executive Director (Finance, Corporate & Europe), Tata Steel and Member of TCFD said, "Developing a sustainable strategy has become the core purpose of companies across the world as they get future ready to embrace disruption in technology, supply chain and business models. One of the principle foundations of a sustainable strategy is recognition of climate change related risks and opportunities."
It is incumbent to evaluate the risks and opportunities of climate change to enable us to think, plan and act on specific goals to future proof our businesses.
"Tangible actions like reducing our carbon footprints and water intake, switching to renewables to the extent possible, and embracing circular economy will all help in tackling this universal challenge of climate change," Chatterjee said.
He said it is important to have a climate change related framework that brings environment, social and governance to the front and centre of the Board agenda and mainstream corporate reporting.
The statement said the task force's recommendations are structured around four thematic areas that represent core elements of how companies operate: governance, strategy, risk management and metrics and targets.
Michael Bloomberg, Chair of the task force, commented, "Climate change presents global markets with risks and opportunities that cannot be ignored, which is why a framework around climate-related disclosures is so important...We're pleased to see so many businesses and investors around the world support the recommendations of the TCFD and hope others will be encouraged to join our initiative."
Speaking about the work of the task force, FSB Chair Mark Carney said: "The task force's recommendations have been developed by the market for the market. They set out the disclosures that a wide range of users and preparers of financial filings have said are essential to understanding a company's climate-related risks and opportunities."...