Presented just one year ago, the Climate Reporting Recommendations for the TCFD, a working group operating under the G20 Financial Stability Board, have already been put in place. According to a study by the Cambridge Institute for Sustainable Leadership, published in late May, two-thirds of G20 member states - accounting for 85 percent of the global economy - have begun to implement these recommendations.
Australia, Canada, Italy, South Africa, Turkey and the United Kingdom have conducted (or are in the process of conducting) consultations with the private sector on sustainable finance. Based on these consultations, Japan has issued voluntary disclosure guidelines.
The European Commission itself has drawn up an action plan aimed at deeply transforming financial practices within the European Union with the objective of making capital available for European environmental objectives. The three areas of the regulation proposed by Brussels relate to reporting requirements, benchmarks used to measure financial performance and the obligation to survey customers on their sustainable development preferences.
Supported by 250 organisations
This obligation of transparency is based on Article 173 of the Energy Transition Law adopted by Paris in 2015, ahead of the TCFD recommendations. This legal inclusion of mandatory climate reporting for institutional investors makes France the most advanced country on the subject.
In contrast, Indonesia, Saudi Arabia, Korea, India, Russia and Argentina have not yet made a commitment. Brazil, Mexico, China, the United States and Germany are simply at the stage of politically endorsing these new financial rules. In total, 250 organisations around the world support the TCFD recommendations including AXA, BNP Paribas, Crédit Agricole, Deloitte, EDF, Kering, LafargeHolcim, Saint-Gobain, Schneider, Societe Generale, Solvay, Total, and Veolia, etc.
The G7 summit in Canada, the 8 and 9 June, was an opportunity to remind governments of their climate commitments. Most notably, 288 institutional investors, representing $26 trillion under management, have called on G7 leaders to publicly support the TCFD recommendations. They urge them to align with the Paris Agreement objectives, end fossil fuel subsidies and accelerate the financing of a low-carbon transition.