These describe what information companies should disclose to help investors, lenders and insurance underwriters and other stakeholders to better understand how companies’ oversee and manage climate-related risks and opportunities. The focus lays on four key areas: governance, strategy, risk management and metrics and targets.
AP4 welcomes TCFD’s recommendations as they contribute to transparency and help market participants to make better and more informed decisions. This is also consistent with AP4’s own work, that’s based on the conviction that including sustainability in investment analyses and decisions is a necessity to conduct successful long-term management.
Over 360 investors, including AP4, are asking the G20 to support the task force’s recommendations.
“To have better disclosure from both big and small companies is very much in demand from both companies, investors, and governments. Better information is necessary in order to be able to make wise and sustainable long term decisions on how to transform into a low carbon economy. AP4's aim to continue to decarbonizing its portfolio is dependent on good information from companies about their emissions and exposure to climate change. Reliable information on emissions and climate change is in other words crucial for the possibilities to deliver sustainable competitive long term return”, says Arne Lööw,Head of Corporate Governance, AP4.